$1,000,000 Auto Insurance Requirements

Ed Thompson

New member
I've been asked to bid on a large roof cleaning project. They are requiring $1mil auto policy which I don't currently have. I can increase my 5 commercial vehicles to $1 mil at an additional cost on $1200 for 6 months. My question is: should I have this much anyway? How to present myself to this bid without paying for this insurance first? I don't know the game very well when it comes to large jobs like this. I've been down this road a few times and don't seem to be a closer on these big jobs. We can handle the job, I just get caught in the logistics. I need help.
 
Did a commercial job once for a wood deck and told the guy that my existing coverage was more than sufficient for the work we would be doing. Then I added the cost of extra insurance to the bid. They waived the requirement.

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Mine will write for specific project so I don't need to pay after the project completes
I've been asked to bid on a large roof cleaning project. They are requiring $1mil auto policy which I don't currently have. I can increase my 5 commercial vehicles to $1 mil at an additional cost on $1200 for 6 months. My question is: should I have this much anyway? How to present myself to this bid without paying for this insurance first? I don't know the game very well when it comes to large jobs like this. I've been down this road a few times and don't seem to be a closer on these big jobs. We can handle the job, I just get caught in the logistics. I need help.
 
Mine won't write for specific projects. I keep wanting to switch insurance companies because they're not very helpful in times like this. Should I present my bid with the current coverage, which is roughly 1/3 coverage than what they're asking for. And ad the additional coverage as an extra fee? It's roughly a $60k bid so it might not mean much to them to ad a few hundred bucks for additional coverage. But if theyre asking for it, Im thinking that it may be the norm. So I don't want to look small-time by getting thrown through a loop about this. Handling this proposal in a professional manner would be a great start. But I'm lost, it doesnt feel good.
 
My insurance agent and the few I have checked prices with have told me that I cannot get the higher limits for the business or vehicles for that job or temporarily, it will be for the rest of the year.
 
Usually you don't need the ins until you are awarded the contract. I just went through the whole 1,000,000 thing a few months ago Ed. It is a five year contract so I am stuck with it for an extra 3k a year I didn't factor in that it will cost me 15k over the term so as long as your thinking about it when you bid your good. I was the lowest bidder today on another five year contract and they require 3,000,000 liability looks like I'm going to be stuck with that as well. I guess it's just the cost of growing, the bigger you get, the bigger the bills you get. Good luck Buddy, I hope that you get it.
 
My insurance rates just went up $400 for the coming year. I carry $1,000,000 liability and full coverage with low deductibles. My agent said that all the insurance companies are raising their rates. But it's also because I went from a 2007 F-350 to a 2011 F-450 this year also. Now I'm paying over $1900 a year. California is high on insurance anyways, you should see the way people drive in L.A

I stabbed myself in the foot though. She had it down as $36,000 replacement cost for the truck. When I told her it was more like $42,000 it jumped it another $100 a year. I need to learn to keep my mouth shut I think.
 
Usually you don't need the ins until you are awarded the contract. I just went through the whole 1,000,000 thing a few months ago Ed. It is a five year contract so I am stuck with it for an extra 3k a year I didn't factor in that it will cost me 15k over the term so as long as your thinking about it when you bid your good. I was the lowest bidder today on another five year contract and they require 3,000,000 liability looks like I'm going to be stuck with that as well. I guess it's just the cost of growing, the bigger you get, the bigger the bills you get. Good luck Buddy, I hope that you get it.
Very helpful. This is what I expected. Get the insurance, do the job then hope you need it again. If you wanna run with the big dogs, I guess you gotta pee in the high grass.
 
All on my higher profile clients require 1mill gen and 1mill auto. In my area 1 mill. is standard across the board. Most that ask what Coverage I have want to be listed as well.
 
Vince, F450 is pretty heavy duty. You carry alot of water?

I try not to carry any water unless I have too. I have a 220 gallon fresh water and a 220 gallon dirty water tank on it. I know the F-450 is a bit overkill but I couldn't pass up the deal I got on it. Not to mention, it rides better than a F-350 and the new diesel engine it has sounds more like a gas engine.

Of course I have the wife telling me we need to get a F-150 so we can pull a boat with it. I told her "heck I have a truck now that will pull a huge boat, a travel trailer, your Volvo, and the kid's Mazda all hooked on to it together. Now you tell me, what would I do with a F-150?" Needless to say she didn't say another word after that.
 
Yeah they will Ed, you just have to start and stop it.
Mine won't write for specific projects. I keep wanting to switch insurance companies because they're not very helpful in times like this. Should I present my bid with the current coverage, which is roughly 1/3 coverage than what they're asking for. And ad the additional coverage as an extra fee? It's roughly a $60k bid so it might not mean much to them to ad a few hundred bucks for additional coverage. But if theyre asking for it, Im thinking that it may be the norm. So I don't want to look small-time by getting thrown through a loop about this. Handling this proposal in a professional manner would be a great start. But I'm lost, it doesnt feel good.
 
Ed I have State Farm for my personal insurance but they could not give me the coverage I needed for commercial. I then found a commercial independant agent who shops around for the coverage we needed. Even for what State Farm could cover the commercial agent insurances were much cheaper. Also they can and do add and subtract coverage when one company requires something different in their requirements. I dont know how far Jamesburg is from you but the agent there is Hal Soden, Jr, Oliver L.E. Soden Agency Phone 732 521-0001 Mobile Number 908 420-3478. Doesnt cost anything to ask to see what they can do for you. And Robert is correct you dont need the insurance for the bid you only need it when you start the work.
 
Jamesburg is close to me. I will give him a call.
Ed I have State Farm for my personal insurance but they could not give me the coverage I needed for commercial. I then found a commercial independant agent who shops around for the coverage we needed. Even for what State Farm could cover the commercial agent insurances were much cheaper. Also they can and do add and subtract coverage when one company requires something different in their requirements. I dont know how far Jamesburg is from you but the agent there is Hal Soden, Jr, Oliver L.E. Soden Agency Phone 732 521-0001 Mobile Number 908 420-3478. Doesnt cost anything to ask to see what they can do for you. And Robert is correct you dont need the insurance for the bid you only need it when you start the work.
 
We had a large commercial roof just this month. After they awarded us the job they then sent over their insurance requirements. We had enough coverage but for the number of additional insured's and other wording they wanted on the certificate the insurance company charged $275.

I forwarded the email to the customer along with an updated proposal charging them for the fees. They had no problem with it and signed it the same day.

For you guys with the five year contracts. As long as you're passing along the cost to the customer that required it, you're not really "stuck" with it. It's the cost of doing business and now you have the higher limits already in place for other high paying jobs.
 
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