Business liability insurance

[ptonsparky]

My liability policy was about 3K. Plus auto, WC, & Comprehensive umbrellas.

 

[petersonra]

my personal umbrella policy has gone up a lot the last few years. It used to be under $100 to increase my liability coverage by $1 million on my auto and HO policies.

 

[petersonra]

I worked on gas stations and fuel piping as well as electrical work. I carried pollution liability because of this. My agent could not find it from a NC certified company (not sure certified is the right word). I signed a paper saying I was aware of this, agent said it was no big deal (I trusted her). If the insurance company is (certified?) in NC, then the state would have come in and covered the bankrupt company liabilities towards the insured.

Well, about 6 months after 9.11, here comes a lawsuit for pollution damage. I turn it over to the insurance company and get word that the underwriter is in receivership. Basically, bankrupt and out of business. So I'm left hanging, on my own. I was able to get out of it for less than $20K (details not important).

My agent said something like this has never happened before, blah blah blah, and sorry, you are on your own. Pretty sucky experience.

I am guessing you had insurance with one of the many insurance companies no one has ever heard of. They are popular because they have lower premiums. But they come and go pretty quick.

Once upon a time I had insurance with a company called Preferred Risk. They only wrote auto policies to people who did not drink and marketed heavily to churches, claiming their rates were lower because they had lower risk customers. My mom and dad had them so I ended up getting them too. It never occurred to me to check prices but at some point while I was in school I did and found coverage for about half the price so I switched.

Later I moved out of the Chicago area and the company that had my car insurance policy wanted to triple my rate. I guess they did not want to write insurance in Rockford, so I switched again. Ended up being less cost than what I had been paying while living in the Chicago area.

 

[romex jockey]

I worked on gas stations and fuel piping as well as electrical work. I carried pollution liability because of this. My agent could not find it from a NC certified company (not sure certified is the right word). I signed a paper saying I was aware of this, agent said it was no big deal (I trusted her). If the insurance company is (certified?) in NC, then the state would have come in and covered the bankrupt company liabilities towards the insured.

Well, about 6 months after 9.11, here comes a lawsuit for pollution damage. I turn it over to the insurance company and get word that the underwriter is in receivership. Basically, bankrupt and out of business. So I'm left hanging, on my own. I was able to get out of it for less than $20K (details not important).

My agent said something like this has never happened before, blah blah blah, and sorry, you are on your own. Pretty sucky experience.

jesus old sparky.....that just ain't right......~RJ~

 

[JES2727]

Good point, however I have no worry about getting sued. The only thing I could see needing the insurance for is cracking someone's granite counter, drilling thru a finished wood floor, some water drywall damage from drilling thru a water line, etc. I could just pay for that out of pocket. Sure anything is possible, but getting sued just doesn't seem at all likely to me.

In 2009 I laid some pipe in a trench across a parking lot for a generator install at a medical facility. I did not dig the trench or backfill the trench or patch it up. In 2018 some medical techs were rolling a patient on a stretcher into the building, tripped over the trench and dropped him. He was in poor health and passed away some time later. His estate is suing anybody who had anything to do with the job, including my company. Like you, I didn't think I ever needed to worry about getting sued but here I am digging through 10 year old files to send to an attorney. I'm glad I have insurance, because it hasn't cost me a dime.

 

[kwired]

In 2009 I laid some pipe in a trench across a parking lot for a generator install at a medical facility. I did not dig the trench or backfill the trench or patch it up. In 2018 some medical techs were rolling a patient on a stretcher into the building, tripped over the trench and dropped him. He was in poor health and passed away some time later. His estate is suing anybody who had anything to do with the job, including my company. Like you, I didn't think I ever needed to worry about getting sued but here I am digging through 10 year old files to send to an attorney. I'm glad I have insurance, because it hasn't cost me a dime.

That got me to thinking, what if a person in same position had gone out of business, retired, etc. say in 2015, and no longer was paying that liability policy? Not saying you have the answer but just throwing it out for anyone that may have some idea what may happen. First you have to lose any lawsuit but who pays if you do? Or is that another legal battle separate from the initial battle and who knows what the outcome may be?

 

[ptonsparky]

That got me to thinking, what if a person in same position had gone out of business, retired, etc. say in 2015, and no longer was paying that liability policy? Not saying you have the answer but just throwing it out for anyone that may have some idea what may happen. First you have to lose any lawsuit but who pays if you do? Or is that another legal battle separate from the initial battle and who knows what the outcome may be?

I'm thinking they go for the carrier you had a the time. I was told once you keep all old policy information. IDR the details.