$1,000,000 Auto Insurance Requirements

I have carried million dollar liability, as well as a 5 million umbrella for years. It is a cost of playing in this business. Sometime, I am going to sit down and figure out how I can do a million dollars in damage to something. I will admit I have a couple of guys that could destroy an iron ball.

As for vehicle insurance, we figure it is $200 per month for each additional vehicle. The worst part is if there is a bump or bruise, you know that two things are going to happen. First, the repairs will be less then that months premium. The other is that someone, somewhere is going to file a claim for discomfort, or injury. It doesn't matter if it was a 5 mph parking lot accident that was their fault, you are getting the hit. My personal favorite was the guy that had to walk 5 miles to his shop, because his boss was a jerk, (It also could have something to do with a mechanic test drive, and the mechanic had no license, so the car was impounded for 30 days, with storage fees, and then the repairs could be continued.) carrying about 30 lbs in tools, and was nearly paralyzed the next day from neck and spinal injuries.
 
Ed, I was awarded a contract that required a lot more insurance and they gave me 2 weeks to get the additional insurance.

When bidding the contract I knew about the additional amount and had my insurance people looking into it so if I won the contract it would be a quick process.

I did not get the additional insurance until I won the contract.

I would have your people get you the info, prices and have things ready in case things work out in your favor.

Hope this helps.
 
I have needed coverage for new construction, have also needed whats call a CG29. The coverage on this is silly LIMITS, however they actually work on the gross Dollar amount of agreement.

I say you start the coverage with a Date to know if and when your awarded. Ask your agent to start and get the quote amount telling her you will be lowering the coverage if not awarded. They will tell you the amount, you will be shocked its not much.

I like Chris idea, it can work. I would rather be the Company that has the coverage already or a letter stating you qualify and stand ready if your not going to activate.

Decision makers are LAZY, they may just choose someone who has it. WHY because no follow up and no problems days Later when the contractor awarded finds out he cant get it.
 
I have this on my G/L policy, "HIRED AND NON-OWNED AUTO LIAB 1000000". Would that qualify? Because my G/L is less than $800 per year total through "Auto Owners Insurance".

I just missed out on a $20k job because I wasn't setup as a vendor for the client. Who knew? But I know now...

Good Luck!
 
I have had to carry 1 million from the very start of my company. State of California Contracts require it as well as all other insurances million minium.
Its an expense that should put you in a secure position for smaller contracts and puts you in the running for the larger ones.

Make sure you read the fine print on the RFQ, I lost a contract because I didn't have the required insurances active at the due date. Yes, they wanted insurance in place before award. I didn't read that clause and lost the job even as low bidder because all my ducks weren' t in a row.

As you grow so do the expenses- think of it as a growing PITA.
 
That is an example of a custom written contract. They ask the company they want what separates them from their competition, and they write that into the spec's. It happens quite often, especially if it is an industry that does not command a lot of respect. I have found ways to beat it, but you have to be prepared for it.
 
I think I need to make changes to my insurance... I've had the 1 million liability policy for years. However, I do not have commercial insurance on my truck. I've always had personal use vehicles that also get used for work. Now I'm hauling a trailer with equipment...so, not sure what I should be doing.
 
I think I need to make changes to my insurance... I've had the 1 million liability policy for years. However, I do not have commercial insurance on my truck. I've always had personal use vehicles that also get used for work. Now I'm hauling a trailer with equipment...so, not sure what I should be doing.

I would personally go with commercial insurance Marc. If you had a accident pulling your trailer your insurance company could always come back and deny the claim because you were using the vehicle for work. It's always better to pay a little extra $$$ and make sure you're covered. I use the same agent for my truck but the wife's car and step son's car is under a different policy and insurance company. Since the kid is under 25 there is a exclusion that says he's not covered on my truck though. I'm the only one that drives it anyways.
 
In this day and time with attorneys advertising on TV any commercial vehicle is a target. When you get in an accident they think you have plenty of money. They see the ad's on TV of how much money they can receive and want to get rich quick at your expense. Many people enter this business and do not realize the true cost of working for yourself. This is why we see so many come and go. The cost of insurance is one thing many overlook. Protect yourself, no one else will.
 
Insurance is a big pain BUT IT`S A MUST HAVE!!! I`ve had a contract with a City for 8+ yrs. and 2 school Dist. for 13yrs. They make me have 2,000,000. in one type of Gen. Liability and 2,000,000 in other type of Gen. liability, 1,000,000 auto, + 40,000 in (for if I have to move a bus or car) in 13 + yrs never had too.. LOL!!! AND NOW I have to have 1,000,000 in Pollution liability.. That was FUN getting that!!!!! BUT the good thing is a lot of guys here don`t have any Ins... (well good for me LOL)
 
That is one of the problems we have here, a lot of other companies don't have insurance but say they do, many customers ask about insurance when getting bids for jobs and cannot believe the lies and excuses they hear from other pressure washing contractors when asked to show a certificate or a phone number to call to verify coverage.
 
That is one of the problems we have here, a lot of other companies don't have insurance but say they do, many customers ask about insurance when getting bids for jobs and cannot believe the lies and excuses they hear from other pressure washing contractors when asked to show a certificate or a phone number to call to verify coverage.

That is why we have the hacks and lowballers in this industry. They make it hard for those working full time and playing by the rules. I would always ask customers if they wanted the cheapest company working on the most expensive asset they owned? There has to be a level playing field. There are too many fly by night people with a pressure washer hurting the industry. Be professional and look professional.
 
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