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Liability Insurance

 
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Old 10-24-2018, 08:21 PM   #1
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Liability Insurance


Something I never thought about. My thread from a few months ago came true and I have moved to Nashville from central NJ.

I went to cancel my liability insurance and was told that if someone slips and falls on a bathroom that I installed 10 years ago I can still be sued and that I should get a discontinuation policy if I'm closing up shop.

The price? $15,000 for the first year then maybe down to $12K the second and so on until it's down to zero. If I maintain my business and continue to pay the $1200 a year I'm paying I figure that will cover me another 30 years and I'll come out ahead of the game.

Unbelievable or maybe I was just naive about insurance. Anyway, I am here in Nashville and I love the area and everyone I meet so far tells me how they can't wait to hire me once I get set up down here as business is booming.

I think I'm just going to work on my golf game. I'm still trying to drag my plumber back to a job back home to adjust the water temp on a shower valve that he promised he would do two weeks ago.

Too much aggravation.

Rant over but those of you who thought your insurance ended when your business did, consider yourself warned.
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Old 10-25-2018, 06:31 AM   #2
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Re: Liability Insurance


I wouldn't worry too much about this. Lawyers in these situations are looking for deep pockets and low-hanging fruit.

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Old 10-25-2018, 02:12 PM   #3
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Re: Liability Insurance


This is why you form an llc. When the llc is out of business there is no entity to sue. They can pursue breaking the corporate veil but that takes time and money to go after a company without any money.

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Old 10-25-2018, 02:22 PM   #4
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Re: Liability Insurance


Close your business down and open under a new name.
Check your policy if you have something like "Completed Works" coverage.
That coverage is in effect on the job through the policy you had when you did the job.
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Old 10-25-2018, 06:30 PM   #5
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Re: Liability Insurance


Quote:
Originally Posted by Kowboy View Post
I wouldn't worry too much about this. Lawyers in these situations are looking for deep pockets and low-hanging fruit.
Like countertop guys.
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Old 10-26-2018, 11:20 AM   #6
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Re: Liability Insurance


Quote:
Originally Posted by TimNJ View Post
Close your business down and open under a new name.
Check your policy if you have something like "Completed Works" coverage.
That coverage is in effect on the job through the policy you had when you did the job.
That's the price for the completed works insurance. Crazy. I was an LLC and I don't think I've ever done any work that could be sue worthy but the whole thing threw me for a loop.
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Old 10-26-2018, 04:20 PM   #7
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Re: Liability Insurance


Completed works coverage that I got is something that is an extra for each years policy, not an after thought policy.
Was only a few extra $ over my basic coverage.

If you weren't paying for it with in each year's policy, I can see why an outside insurance company would want so much after the fact.
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Old 10-27-2018, 11:13 AM   #8
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Re: Liability Insurance


that's why I posted. Others can learn from my mistake.

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