Insurance question for the self employeed

With Dad having decided to do something different 'in his old age' the business has been handed over completely to me. Though I have always been self employeed so far as who I worked for customer wise, etc, etc, technically the way we had things set up I was still working for Dad's company for insurance purposes, etc and the service truck was kept in his name. Now all that is changing with me taking over completely. It's about time to renew everything insurance wise so as part of taking over I've been shopping for insurance, both general liability, and commercial (heavy truck) vehicle.

Dad has been with the same people for the liability forever, and the truck insurance has been with a couple of different carriers over the past 12 year. I'm basically just shopping around now trying to compare rates and coverage and see if can do any better from anywhere else. Til now things have always been seperate but I know that often you can get a better rate from a single carrier that can bundle the policies together so I'd like to go that route if possible. However if I have to use two different ones just to get the insurance, or possibly to get a better rate, I'll do that too.

What I've been told so far is that the truck insurance is easy, but as far as the liability insurance is concerned, what I do has no real classification in the insurance books. By that I mean if I was a fixed repair facility/shop, then there is a 'code' for that, but because I'm mobile and do most of the work on site, because I work on everything from small engines to farm tractors to earthmoving equipment to forklifts to cranes, and because I the services I provide range from mechanical repairs to welding to portable machine work, I'm not normal. Because what I do isn't 'normal' it doesn't fall into any one classification so it's hard to find an insurance company that has a policy to cover me. However I was also told by the old insurance guy that normal liability from most carriers should cover 99.999% of everything I do, and that he can do that and that it isn't that expensive. However when you throw in working on anything 'hydraulic' the rate goes through the roof, literally. No one else I talked to about the liability ever asked me anything at all about hydraulics, and in fact when it was mentioned seemed to expect that is just part of working on construction equipment. In the end I'm more confused than I was when I started calling. I mean most dealerships, be they farm equipment or construction equipment, has a field service department, and the construction equipment dealers also do welding, and portable machine work......So what makes me so special except that I am one guy doing everything instead of a several different guys in a huge department each doing only one of those things?????????? Not to mention I have been doing this type of work since before I was in my teens so I'm not some extreemly risky, trade school grad, inexperienced startup doing this kind of work for the first time.....

All of that said, I know many of you on here are self employeed doing various things, including equipment repair, and may of you have heavy trucks also. So, my question. Who do you have your liability insurance or heavy commercial vehicle insurance through now? Too, who all have you had any experiences with, talked to, etc and, from that group, based on that interaction, who would you recommend for either or both types of insurance????

Thanks for any and all answers. Wayne

Most large companies won't allow a worker on site without proof that he's covered by workman's compensation insurance or equivalent coverage. Something to consider if you're currently uninsured or maybe on your wife's policy.

Years ago, when I bought my first "big" truck, I remember my insurance agent groaning. He wasn't even sure I could get covered! He said I was likely to get thrown into an "assigned risk pool" like a "youthful unmarried male operator" !!!!!!!!! So, he right then and there called a company district office and requested to write a policy rather than have to throw me to the wolves- permission granted!
Years and trucks later, I still have that policy. Even between trucks I was told to keep the policy paid up, because I could probably never get it back.
Our farm liability and smaller motor vehicles are all with the same agency, but with different companies. Every few years he will shop around and find a better deal.
So, in my case, the key has not been the right company, nor bundling, but the right agent.

I'm kindly in the same boat Wayne because some companies say welding is a high risk occupation.I told them I wasn't welding on nuclear subs,just bulldozer etc., but they dropped me anyway. That is when I went to ERIE. Have been with them several years now and everything has worked out well.I have general liability, completed operations and service truck all on one policy, check them out.

I've worked for alot of large companies over the years from Martin Marietta to Norfolk Southern RR, and many others in between, and have never run into any problems with not having workman's comp. When your a one man show it's not something that is required by law for you to have and even companies with a 'policy' concerning having the insurance typically understand that your better able to 'compensate' yourself with your own money than paying it out for someone else to do it for you. The only thing that most are really concerned about is the general liability and then it's typically required that you carry a minimum of a million, with an agragate of two million in some cases. Even then some are willing to waive that requirement depending on the type of work being done....especially when your the only one doing that type of work and have been doing it for them for years. In other words it's good to have GOOD customers that you can rely on to work with you when times are bad, because they know they can rely on you to work with them too when they have a problem.

I think it is best to talk with other businesses in the same trade and try to find a carrier that works for them. I have all my insurance through the same agency so there is no finger pointing in the event of a claim.

I carry property, liability, workers comp and professional liability. It costs me about 1% of my gross.

Most small business 3 employees or less are exempt from workers compensation insurance.

I understand what your saying, and that's one of the reasons I posted here because the problem I'm having is that I don't know any other businesses like mine because of the variety of services I provide and the range of machines I work on. Most equipment mechanics don't do machine work like I do, most that work on cranes don't typically work on the other equipment too, etc, etc, etc. Like I said being an independent and doing such a variety of different types of work, I'm told, makes finding a normal, 'fit all' policy no good for me.

Wayne In some states for one man you have to get some type of "certificate of self employment" and it replaces workmans comp. As far as truck goes that should be seperate and some auto companies won't insure large trucks. Make sure tools, contents etc are insured seperatly!!! My next guess is you need to be insured as a repair facility or mobile one possibly both. It might be based on what you do the most of ie welding, mechenic work, etc. Good luck. You may need to do LLC to help on liability.

[u:da6b13e176]Do Not Allow Price To Be A Deciding Factor!!![/u:da6b13e176] Not all insurance companies are good insurance companies. Sure shop around for policies that meet your needs but before you buy get on line and look up the carrier! If they have a reputation for deigning claims, taking overly long to settle or low balling claims no matter the price stay away from them. Remember that insurance is a bother and cost until you have a claim! You can find most insurance companies are rated and you can check on that!

Rick

(quoted from post at 09:02:17 09/26/11) I think it is best to talk with other businesses in the same trade and try to find a carrier that works for them. I have all my insurance through the same agency so there is no finger pointing in the event of a claim.

I carry property, liability, workers comp and professional liability. It costs me about 1% of my gross.

Most small business 3 employees or less are exempt from workers compensation insurance.

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Your workers comp requirements must be really different than in Minnesota. If I hire anyone, even an adult family member, I have to carry workers comp on them.

Owen they way it's set up is that there is a minumum standard required by federal law. If state law exceeds federal standards then the state law applies.

Rick

If it worked for your dad why wouldn't you stay with the same company? Actually, if he ran it as a named company, you could take over the named company and just carry on. I have never carried workman's comp. in the 34 years of being self employed. Not required in SD if you have a family member or work for yourself. I carry general liability through Allied. Never needed it so don't know how good they are. Tools are covered under a policy coverage called "Inland marine' also with Allied. My work truck is also with them. My insurance company requires that I get a certificate from each of the subs or when they do an annual insurance audit as they call it, they will rate you higher for the subs that didn't provide the certificate.