Liability Insurance

[deeredriver]

I am thinking about using my machine(690 ELC Deere) to work for hire, but have no clue as to the price of liability ins. What does it run? I was told by another excavating co. that I need a 1,000,000 policy. What do you have?Thanks!

 

[CascadeScaper]

$1,000,000 at least. When I was mowing lawns I was insured for $1,000,000 in liability. Depends on where you are for cost, but I'd say $5,000 and up is about right.

 

[Dwan Hall]

I work alone and found if I based my insurance on payroll it was less then 1/2 then if based on gross income. Because I am the only employee I draw minimum wage which is about $37K per year. a 2 mil. policy cost me about $2700 per year. Then there is insurance for the dump truck, another $1800.00, $500 for the trailer, another $800 for underground, ETC. So $5,000 is in the ball park around here. with no claims.

 

[deeredriver]

Thnaks for the help. I now have another question-What is "underground"? I thought liability ins covered anything I could hit underground? Also, do companies offer policies for short peroids of time? I was talking to my dealer about renting something one day and I asked about the ins. They said that they offer it, or I could get it from my agent for a couple days? Thanks!

 

[RT Engineering]

Every policy I have ever bought has been for a year. Now I have downsized dramatically, no employees, and I am working as operated rentals. The insurance for this is close to the $5,000 for a year.

Be careful, the insurance the dealer is talking about is for Fire, Theft, and Vandalism. The dealer does not cover any liability. They only care about their machine. So if you burn it up, or roll it they will be covered, but the damage caused by the machine will still fall back on you. Can be very expensive.

RT

 

[Dwan Hall]

Underground is just that, Anything under the surface. Not all insurances cover everything.
If you were a landscaper and cut a power line installing a waterline you would not be covered
Make sure what ever you do is listed on your policy. Some insurance co. will cover anything as long as it is less then 5% of the type of work listed but not all insurance co,s will do that.

RT Engineering, is correct in that rental co. insurance only covers there loss not yours.

If you get cought on a job without insurance the state can lock you up and through away the key. also whom ever you are working for will not have to pay you untill you can prove you are covered.
After you get insurance a lot of insurance co's will adut you once a year to see what kind of work you are doing and how much money you have made over the year. That way if you have made more then you expected they can give you a bill for what they concider there share.

Find a good agent he/she can make you or brake you at will. shop around.

Dwan

 

[Dirtdog]

You might want to talk to you local contractor licensing agency.

 

[dayexco]

the coverage you're talking about...is commonly called...XCU....or "explosion,collapse,underground"...you NEED it if you're going to stick any type of machinery in the ground.