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Insurance company

5840 Views 52 Replies 7 Participants Last post by  perfecto
Whats a good insurance company that has good prices?
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Not much you can do to lower the rates, you just need to shop around. Do it like this:

Open yellow pages, start calling insurance agents. Start with big names, State Farm, Allstate, etc. Answer all their questions truthfully, and they will give you a quote. Then move on to the smaller, independent brokers. Same thing, answer the questions, they will give you a quote. Pick the best one, for the best price.

Things that will determine your cost:

The type of work you do. If you do spraying, it will cost more (more damage can be done). If you do exterior, it will be more expensive than only interior work (more and higher ladders). I do more paperhanging than painting, so I'm a little lower than full-time painters.
The $$$$ amount you want to be covered for. IMHO 1mil is the industry standard, especially if you plan on doing any commercial work. If only small residential jobs, maybe 250k-500k would work.
Your deductible will also help determine your premium costs. The lower the deductible, the higher your rates will be. Pick a deductible that you can cover, with your own cash in case you need to use it. If you have a 5k deductible, and happen to do 35k in damages, but can't fork over the deductible, your in trouble. So pick a deductible that you will be comfortable with.

Also, you must check with your auto insurance to make sure if you need a commercial policy on your work vehicle. Some basic auto insurances won't cover you if they find you are driving to multiple jobs throughout the day/week. You can also get a 'rider' on your auto policy to cover your tools if they get stolen from the truck, or damaged in an accident.

I also have a 'floating rider' on a GL policy, for big jobs. I call the agent, and activate it for around $35-$50, and I am covered when working with expensive materials (6 figure murals).

The initial quote will be good for the first year. After a year, they do an audit. They look at how much your payroll was, and adjust your rates accordingly. (One of their initial questions for the quote is how much payroll annually). If you paid out more payroll than expected, your rates will go up. If you paid any subs over that year, you must show their Certificates of Insurance, or you will get hit for their share (depending on how much work/money they got from you).

The worth of the insurance is if it will fully and successfully CYA if you have a huge screwup. And try like hell to never ever need to use it.

I carry 2mil per occurrence with a $2500 deductible, and pay $900 annually.

Workmans Comp is a whole 'nother story.

And there you go.
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