I opperate in east tennessee and I am shopping around for some liability insurance. My customers are mainly residential and I was thinking somewhere around a 1 Million $ policy. Anybody have any suggestions on providers they recommend or have had to call up on and had good results. Thanks
Liability insurance
- Thread starter mccayry
- Start date
- Status
The cost of liability insurance and the amount you will need may depend on a number of things such as how long have you been in business, your experience in the trade, are you a licensed electrical, your assets, exposures, will you be doing any high voltage work? Will you be doing underground work? Have you had any claims in the past,
Not all policies are the same, some are year to year, these offer little or no real coverage, they are cheap policies, usually just ok to meet min requirements to get a license in many states, but nothing that will protect your assets or fight for you, then there are the better policies that have full coverages with completed operations and error and omisions clauses and limits of liability clauses that offer real protection and can protect you and your assets, but they will cost more
Not all policies are the same, some are year to year, these offer little or no real coverage, they are cheap policies, usually just ok to meet min requirements to get a license in many states, but nothing that will protect your assets or fight for you, then there are the better policies that have full coverages with completed operations and error and omisions clauses and limits of liability clauses that offer real protection and can protect you and your assets, but they will cost more
ptonsparky
Tom
- Occupation
- EC - retired
We changed companies this year. Equal or better coverage with added benifits of safety training videos etc. Not just liability though.
hurk27
Senior Member
- Location
- Portage, Indiana NEC: 2008
Here in Indiana we are required to hold at minimum 2 mill of liability, and 5k bond, I priced around and it was all over the place till I checked with State Farm, who has my auto, home, and life, they only charge me like $29.00 a month for the 2 mill policy, and $50.00 a year for the 5k bond and another $27.00 a month for a 1 mill liability on my work van which includes tool loss coverage for theft or accident.
Not sure how they will be in Tennessee, but for here it was the best prices I could get, you might want to check with what your state or local minimum's are.
Of course since I have everything through them they can offer some big discounts accross the board.
Not sure how they will be in Tennessee, but for here it was the best prices I could get, you might want to check with what your state or local minimum's are.
Of course since I have everything through them they can offer some big discounts accross the board.
ElectricianJeff
Senior Member
- Location
- Southern Illinois
I use State Farm as well and my numbers are pretty much the same here in Southern Illinois
no need to over insure
no need to over insure
when buying your insurance you should remember that insurance companies are in the business of "Selling" their product...most firms probably only need 2/3 of what the insurance company would like to sell them...for me this explains why i have gotten quotes that come in $35,000 +- apart from each other... commercial (as opposed to homeowners) insurance is usually broken down as auto, workers comp, umbrella package, and liability; with liability being the least expensive in terms of coverage amount VS premium charged...DO NOT let them set you up as a commercial acct as you will pay much more...you just need a liability rider on your homeowners policy...
no need to over insure
when buying your insurance you should remember that insurance companies are in the business of "Selling" their product...most firms probably only need 2/3 of what the insurance company would like to sell them...for me this explains why i have gotten quotes that come in $35,000 +- apart from each other... commercial (as opposed to homeowners) insurance is usually broken down as auto, workers comp, umbrella package, and liability; with liability being the least expensive in terms of coverage amount VS premium charged...DO NOT let them set you up as a commercial acct as you will pay much more...you just need a liability rider on your homeowners policy...
handy10
Senior Member
- Location
- western suburbs, chicago
Liability insurance has some funny exclusions, at least in IL. If you are working on a particular item and ruin it, no insurance coverage, e.g. you mis-wire an expensive motor and it burns up, there is no coverage. On the other hand, if you are working on the expensive motor and accidentally bump the furnace which then starts a fire, you have full coverage. The difference is "care and custody"; if the ruined item has been committed to you for work, it is not covered by liability insurance alone. You need to cover the "care and custody" separately.
cadpoint
Senior Member
- Location
- Durham, NC
One of the phrases that an insurer might use on you is Commercial General Liability policy (CGL)*. For better or worst how you get that coverage it seems from the previous statements, your mileage will very!
* A standard form of liability insurance developed for use in the business sector. It is usually contained in a broader mercantile policy also covering property loss and business interruption.
* A standard form of liability insurance developed for use in the business sector. It is usually contained in a broader mercantile policy also covering property loss and business interruption.
startup
startup
My quote having just started the business was GL=929, commercial auto 949, umbrella=600. this was for 1 mil/GL, comm auto 1 mil, and 1 mil umbrella, travelers was all I could get quotes for. Being a new business it wasn't easy to even get that.
Farm Bureau the commercial auto was the same, but the G/L and Umbrella was half.
startup
My quote having just started the business was GL=929, commercial auto 949, umbrella=600. this was for 1 mil/GL, comm auto 1 mil, and 1 mil umbrella, travelers was all I could get quotes for. Being a new business it wasn't easy to even get that.
Farm Bureau the commercial auto was the same, but the G/L and Umbrella was half.
tryinghard
Senior Member
- Location
- California
In California I recommend State Farm, call a State Farm agent in your area and see if they can help you out.
And for those in California go to Kristen Eaton State Farm Agent
hurk27
Senior Member
- Location
- Portage, Indiana NEC: 2008
From what I'm being told, insurance underwriters like State Farm, Farm Bureau, and others who have underwrote home and auto policies for years, are trying to recover from all the losses of the 2005 hurricane season and the tornado out breaks we have had, so they are trying to venture into markets that was once only held by a certain few commercial underwriters, from what my agent said is they are not looking for large companies, but small single man to as many as 10 employees shops.
With State Farm I can do new and old construction, repairs, and commercial, and light industrial, up to 100k bids, higher then that I have to submit for high umbrella coverage to cover anything larger which they can refuse if they feel the liability is too great, then its back to the larger high dollar commercial underwriters.
Each states insurance requirements will be different, as well as what you will pay, litigations laws of each state plays a big part of this.
With State Farm I can do new and old construction, repairs, and commercial, and light industrial, up to 100k bids, higher then that I have to submit for high umbrella coverage to cover anything larger which they can refuse if they feel the liability is too great, then its back to the larger high dollar commercial underwriters.
Each states insurance requirements will be different, as well as what you will pay, litigations laws of each state plays a big part of this.
insurance
insurance
State Farm is looking for business that has had 2 years prior coverage. That is when they can be real competitive. Farm Bureau if you 70k or more payroll or use subcontractors they will not write you. You have to really look at the exclusions in your new policies, they used to be maybe one or two pages, now they are some times up to thirteen pages with up to 130 specific exclusions.
insurance
State Farm is looking for business that has had 2 years prior coverage. That is when they can be real competitive. Farm Bureau if you 70k or more payroll or use subcontractors they will not write you. You have to really look at the exclusions in your new policies, they used to be maybe one or two pages, now they are some times up to thirteen pages with up to 130 specific exclusions.
Insurance cost for new construction is expensive, in every state, they experience a large number of claims from this group
- Status