Insurance for Installation Work

Blazeorange · Post by **Blazeorange** » Wed Dec 10, 2003 8:36 pm

I know this has been addressed in the past (I remember some of the posts) but I couldn't find any specific threads on it.

I contacted my insurance agent about getting insurance to do installs and he advised me that he's unable to get a policy underwritten. He advised that he tried several major companies, several smaller companies and everyone he could think of and they are reluctant to underwrite such an endeavor. It seemed a little peculiar to me but I didn't argue and he wasn't real suggestive on how to proceed.

I'm starting this business on my own after the first of the year, hopefully, and I want proper coverage. Obviously it is just me alone doing the work at this point.

I am considering contacting some bonding agencies to try and get bonded as well.

Just curious who some of the folks on this site that do this on a professional level are insured with. I want to start into the install arena but do it properly, correctly and be covered.

Any suggestions? Help from those of you with experience in this is definitely appreciated.

Thanks.

Blaze.

KG6EAQ · Post by **KG6EAQ** » Wed Dec 10, 2003 8:48 pm

Any insurance company that handles construction companies should be willing to pick ya up.

fire-medic8104 · Post by **fire-medic8104** » Wed Dec 10, 2003 8:48 pm

Just a thought, but you may look into insurance companies that insure automotive repair shops. Then again, you just may need a general liability insurance that kinda an umbrella policy, it covers everything.

The latter should be able to be underwritten by any major insurance company and underwriter.

It's out there somewhere, it's just a matter of finding it.

I have a friend who owns his own auto shop. I'll ask him what he uses.

commtek · Post by **commtek** » Thu Dec 11, 2003 3:11 am

It is considered an "Artesian" policy. Mine is with the "Mutual Benefit Insurance Company". You also need a "garage keepers" clause if you keep posession of the vehicle or drive it. You also need a CDL driver's license to drive commercial vehicles such as fire trucks. I realize that the fire department's drivers do not need this, but you do, unless you are a menber or employee of that department, and qualified to drive that piece of equipment. This rule also applies to fire equipment salesmen who transport and deliver vehicles.

Check with the smaller independent insurance agents. They are usually more responsive than the big boys. Make sure you have at least 1 million in coverage, some companies we do work for require that.

Post by **alex** » Thu Dec 11, 2003 6:36 am

Out of pure curiosity -

What are the costs associated with the policies.

-Alex

commtek · Post by **commtek** » Thu Dec 11, 2003 6:48 am

The policy cost is based on the volume of work you do and any claims that you file. (No claims, so far) I am audited every year by the insurance company to determine the cost.

jim · Post by **jim** » Thu Dec 11, 2003 6:54 am

I'm paying around $1200.00 per year for my garage keepers/inland marine policy. This covers vehicle in my posession, being driven, in my shop, my shop service truck and tools, my shop and it's contents. It provides $1M coverage and also covers a vehicle if something should go wrong for a certain period of time once it leaves here.

motastro1 · Post by **motastro1** » Thu Dec 11, 2003 8:09 am

What part of Iowa are you located in?

Blazeorange · Post by **Blazeorange** » Thu Dec 11, 2003 3:23 pm

Jim:

I'm curious......the inland marine policy. Do you do boat rigging as well?

I have an inland marine policy on my homeowner's policy for my fishing and duck hunting boats. I wasn't sure if you meant for the inland marine coverage was to rig boats, etc.

Thanks to everyone for all of the replies.

Blaze.

mastr · Post by **mastr** » Fri Dec 12, 2003 7:23 am

"Inland marine" coverage is for property of others while in your custody. Such policies were originally used mostly for goods that were transported by boat/ship, hence the name.

Blazeorange · Post by **Blazeorange** » Mon Dec 15, 2003 5:26 am

I could use some more advice on companies to contact. I wanted to put a whole list together of contacts and do some comparison before I settle on just one.

Any more ideas would definitely be appreciated.

Also, some ideas on what liability coverages I should have as a minimum and types of policies (coverage) that some of you use (more in-depth) would be great.

Thanks for all of the help so far.

Blaze.

motastro1 · Post by **motastro1** » Mon Dec 15, 2003 6:55 am

What part of Iowa are you loacted in?

Blazeorange · Post by **Blazeorange** » Fri Jan 23, 2004 5:51 pm

Well.........got my first insurance quote.

I'm still in the learning and research phase of a lot of the install realm so I don't have to step up and buy insurance right away. I'm leery to even help friends out too much with their vehicles without good coverage in place on the off chance of "what if." I definitely don't charge to help them.

I was a little surprised to open up this quote from a company in Iowa and see General Liability Coverage Premium of $755. Garagekeeper's Liability Coverage (Auto) $1,404.00 and Garagekeeper's Liability Coverage (Marine--work on fishing boats, etc) of $203. All total, the yearly premium was $2,362.

This was with $1M in coverage, protection, etc.

I know Jim (PA) said above that he pays like $1200 a year. That seems a lot more reasonable. My biggest concern is that if a person doesn't jump in soon, I doubt the premiums will ever get any cheaper. I imagine those that have been in business for quite some time are under better premium rates as continuous customers.

This isn't very cost effective for a side-line business with premiums on a monthly scale of that price. Don't get me wrong, I understand the necessity for the insurance and I definitely won't work without it.

Maybe insurance premiums like these mean to keep the full-time professionals in business and discourage the weekend/shade-tree's like myself. It's frustrating though that a person can't find affordable insurance just as a precaution to do something they like............

Any constructive (not flaming) suggestions or other companies out there to shop around with?

Thanks.

Blaze.

n5tbu · Post by **n5tbu** » Wed Feb 02, 2005 5:48 pm

Not sure if this helps,but we are paying 38,000 for 2 million with a 2 million umbrella in order to do offshore work for Devon Energy.
This policy covers us in any endeavor.
mod

KG6EAQ · Post by **KG6EAQ** » Thu Feb 03, 2005 12:50 am

n5tbu wrote:Not sure if this helps,but we are paying 38,000 for 2 million with a 2 million umbrella in order to do offshore work for Devon Energy.
This policy covers us in any endeavor.
mod

You're doing some damn dangerous work. I pay ~$2k for my $2million policy.

Fri Feb 04, 2005 4:47 am

We currently have a 2 mil umbrella and it's costing us about 4k a year. Jim, if you get a chance, please e-mail me with who you're using in PA as I would like to get a quote from them. Thanks.

Insurance for Installation Work

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