Liability insurance

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I carry 2 million because one contractor requires it. Mine is with Acuity, through an independent agent. Runs about $800 per year.

I inquired about tool coverage once, the price per year was about 2/3 the value of the tools. Considering insurance is like hedging a bet, that's a bad beat.
 
Best rates depends on many factors.

I do have most my policies with one company. some them seem a little high and there are companies that do offer lower rates with a particular policy. but taking away that multi policy discount can make the total of all policies together more than if I spread those policies over multiple insurance companies.

I did have an independent insurance agent that wanted me to see what she could do for me. I sent her all the policy information of what I all have under that one company so she could give me approximately same coverages on those - she actually replied that she can't get me a better overall cost for all them than what I currently was paying. I never even seen what individual policy rates were in what she was going to propose.
 
kwired said:
Best rates depends on many factors.

I do have most my policies with one company. some them seem a little high and there are companies that do offer lower rates with a particular policy. but taking away that multi policy discount can make the total of all policies together more than if I spread those policies over multiple insurance companies.

I did have an independent insurance agent that wanted me to see what she could do for me. I sent her all the policy information of what I all have under that one company so she could give me approximately same coverages on those - she actually replied that she can't get me a better overall cost for all them than what I currently was paying. I never even seen what individual policy rates were in what she was going to propose.
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My total insurance was about $16000 last year. Seems like an awful lot for 3 employees. Only one of which is productive.
 
We go through a local independent company. 1,000,000 for almost everyone cept that occasional contract that needs 2,000,000. Not sure what just the liability is per year.
 
Tristan said:
We go through a local independent company. 1,000,000 for almost everyone cept that occasional contract that needs 2,000,000. Not sure what just the liability is per year.
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IIRC, there generally isn't much difference in premium cost for 2M vs 1M and many go with 2M because of that.
 
I’m in Florida and have liability insurance to maintain my license. I don’t actually run a contracting business, I work in manufacturing and supervise electricians. The license makes the inspectors employers happy, ands it’s opened up a lot of doors for me.

I’ve been paying around $740 a year for many years, but this year they jacked up my premium about 50% to $1100. They say it’s a normal rate increase…. I need to shop around, anybody have any recommendations?

Thanks
 
I just got quoted about $65/month for commercial insurance. I don't wanna pay for it yet as I'm still a student and don't want to compete with my current boss.
 
For contracting types of businesses I think most companies will likely have an estimated premium, and on an annual basis will audit what you did for business to determine what the actual premium should have been. If your estimated premium was too low because you underestimated what your sales were going to be - you will owe them the difference at the end of that audit period. If your estimated premium was too high they will refund the difference.
 
A friend of mine opened a tree trimming business a few years back. Since shut it down due to lack of business. I would have thought his liability insurance premiums would have been crazy high, but they were less than $200/year.

The actual cost of liability insurance premiums for most businesses suggests to me that the actual costs of the liability issues many fear is a LOT lower than most of us think it is. One multimillion dollar verdict makes the news but the hundreds of thousands of businesses who have no claims at all don't make the news.
 
petersonra said:
A friend of mine opened a tree trimming business a few years back. Since shut it down due to lack of business. I would have thought his liability insurance premiums would have been crazy high, but they were less than $200/year.

The actual cost of liability insurance premiums for most businesses suggests to me that the actual costs of the liability issues many fear is a LOT lower than most of us think it is. One multimillion dollar verdict makes the news but the hundreds of thousands of businesses who have no claims at all don't make the news.
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Yeah I have never, in about 15 years on my own, had a claim. A big money claim has got to be super rare. Seems like the most likely thing is dropping something on a tile floor and cracking a tile or something like that. Only time I came close to a claim is when I drilled thru a wood floor from below with an auger bit while doing a rewire. I offered to get my insurance to pay for the repair, but turned out the flooring guy was there doing a bunch of stuff anyway so the HO just had him fix it and wasnt worried about it.
 
For me, the most likely benefit is it backs my car insurance, so it gives the insurance company a real incentive not to just roll over and play dead, but to go out and try to resolve it should I have an accident. $2M doesn't cost all that much.
 
AC\DC said:
I use Next insurance, they are fairly cheap, paying a little less that what you use to pay.
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AC/DC, thanks for the recommendation. I got a quote for $453/yr. I sent it to a well known local agent contractors in my area like to use and he said Next is a good company, and at that price recommended I go with them... You saved me a bunch of money, and I really appreciate it.
 
I had to bump my policy from 1 mil to 3 mil to accommodate potential losses on a couple of McMansions I've had to do some work on. The difference in cost between those levels was very minimal, also upped tool coverage level. Inflation also has taken smaller homes replacement levels much higher pushing policy coverage level needs higher too.
 
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