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Old 03-11-2013, 03:33 PM   #1
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Insurance Question


This is targeted mostly to the guys in PA, but I would be interested to hear anyone's thoughts on this, including any agents that can clear this up for me, without going to far into the actuarial table.

Was on the phone with an agent today because I wanted to do some price shopping, and wanted to give a local guy a chance to give me a quote.

My existing policy is with...well, let's just say they aren't local and have become a little to gimicky for me. (That shouldn't be too hard to narrow down now. )

Anyways...

I was talking to the (new) agent today, and he said that for the building that I'm renting as an office, he needed to take a picture of the siding and the service panel, to get me covered for Contractor's Liability.

Mmm, okay.

Is this standard practice for PA ?
...and/or anyone else required to do so, or even heard of this?

P.S.: I'm not applying for renter's insurance and the landlord has coverage on the building already.

Thanks.
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Old 03-11-2013, 04:49 PM   #2
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Re: Insurance Question


I wish I could be more help to ya Scott.

In the situation you said I have never heard of them wanting to take a look at that stuff. I've heard of it with homeowners, but not liability ins.

I finnally started renting a place to keep my junk as well, I just havent gotten around to calling the insurace guy to get my stuff covered yet. So I will probably be in the same boat as you.


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Old 03-11-2013, 04:53 PM   #3
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Re: Insurance Question


we get a better rate insuring our building ( we own) with a single policy that includs liability. The agent needed to note construction material which is cinder block and the elecrical system which we updated.

we rented this building prior to purchase and didn't need to have any pictures we did a renter policy that covered office equipment and tools.

Maybe he is looking at a blanket policy .

because we own the building now we needed liability for the property

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Old 03-11-2013, 05:39 PM   #4
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Re: Insurance Question


What sort of insurance are trying to get quotes on? Not sure why he would need information about a building you are renting. It may be liability for your operations at that facility.
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Old 03-11-2013, 05:50 PM   #5
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Re: Insurance Question


Quote:
Originally Posted by tenon0774 View Post
This is targeted mostly to the guys in PA, but I would be interested to hear anyone's thoughts on this, including any agents that can clear this up for me, without going to far into the actuarial table.

Was on the phone with an agent today because I wanted to do some price shopping, and wanted to give a local guy a chance to give me a quote.

My existing policy is with...well, let's just say they aren't local and have become a little to gimicky for me. (That shouldn't be too hard to narrow down now. )

Anyways...

I was talking to the (new) agent today, and he said that for the building that I'm renting as an office, he needed to take a picture of the siding and the service panel, to get me covered for Contractor's Liability.

Mmm, okay.

Is this standard practice for PA ?
...and/or anyone else required to do so, or even heard of this?

P.S.: I'm not applying for renter's insurance and the landlord has coverage on the building already.

Thanks.
I would ask the agent what type of coverage he quoting. We rent our building and have a triple net lease in place. That means we cover everyrhing. He may assume you need blanket coverages which are common in gl policies.
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Old 03-11-2013, 05:56 PM   #6
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Re: Insurance Question


You guys might be right.

I thought I was pretty clear about JUST a Contractor's Liability policy, though.

I give him a call in the AM and see if I can get him to splain it.

...On the other hand, if he wasn't paying attention to what I was saying, and is just trying to do an up-sell, I might have to throw this one back.
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Old 03-11-2013, 06:01 PM   #7
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Re: Insurance Question


He's a salesman...its their job to listen and then try and upsell...lol:-)
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Old 03-11-2013, 06:03 PM   #8
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Re: Insurance Question


Quote:
Originally Posted by tenon0774 View Post
You guys might be right.

I thought I was pretty clear about JUST a Contractor's Liability policy, though.

I give him a call in the AM and see if I can get him to splain it.

...On the other hand, if he wasn't paying attention to what I was saying, and is just trying to do an up-sell, I might have to throw this one back.
I just got off the phone with an insurance agent. My last company (Erie), I was with for 3 years. All of a sudden the agent tells me the rates are going up, so he is switching me to something else. I get the quote emailed last week, and it is 30% higher than last years.

I am sick of all the insurance crap. Give me a decent rate, treat me right, and I am your customer for 20 years or more. Seems like every agent thinks they have to make bank on you in three years and then your gonna jump ship.
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Old 03-11-2013, 06:09 PM   #9
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Re: Insurance Question


We have an excellent local company and agent. The rates are decent but not cheap. We have been with them for 12 years. Never had one claim (knock on wood). They are proving themselves right now and their service has been amazing. We are fortunate to have a mom and pops insurance company in town! Don't settle for a company or an agent if you don't feel good about them.
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Old 03-12-2013, 06:53 AM   #10
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Re: Insurance Question


Quote:
Originally Posted by Warren View Post
I just got off the phone with an insurance agent. My last company (Erie), I was with for 3 years. All of a sudden the agent tells me the rates are going up, so he is switching me to something else. I get the quote emailed last week, and it is 30% higher than last years.

I am sick of all the insurance crap. Give me a decent rate, treat me right, and I am your customer for 20 years or more. Seems like every agent thinks they have to make bank on you in three years and then your gonna jump ship.
Warren,
I have been with Erie about 25 years--our policies run from November to November----- so when it renewed in November 2012- it increased just over 1%

be interesting to see what it does in November 2013.
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Old 03-14-2013, 12:41 AM   #11
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Re: Insurance Question


Quote:
Originally Posted by tenon0774 View Post
I was talking to the (new) agent today, and he said that for the building that I'm renting as an office, he needed to take a picture of the siding and the service panel, to get me covered for Contractor's Liability.

Mmm, okay.

Is this standard practice for PA ?
...and/or anyone else required to do so, or even heard of this?

P.S.: I'm not applying for renter's insurance and the landlord has coverage on the building already.

Thanks.
This is not really standard practice, but the agent is being very thorough. (It's possible that he had a previous problem re a claim involving a rented office/workshop, so has changed his documenting procedures to make sure this doesn't happen again.)

Some comments were already made re the difference between basic contractor's operations liability insurance only; or having the liability coverage extended to also provide premises liability on a building you own (or a rented building where your lease requires you to provide the insurance.)

Even if you are just buying bare-bones coverage for your operations as a contractor, there are usually some extra extensions thrown in to that Commercial General Liability Policy, such as Personal Injury Liability, Tenants Legal Liability (TLL), Voluntary Medical Expenses, and Non-Owned Auto Liability coverages.

TLL cover will protect you if you are sued by your landlord (or his insurance company) if it is found that you are responsible/negligent for their building loss. Ergo, the name Tenant's Legal Liability. This is different from "renter's insurance" which covers whether you are negligent or not. (By the way, this coverage can also be useful if you are renting storage units; or renting motel rooms for employees when on out-of-town jobs.)

Example, your employee starts a fire because he has overloaded the electrical circuit with some high-power equipment while working in your shop area and the landlord's building burns to the ground. Even though the landlord's building insurance will initially pay the claim, they will then try to subrogate against you to recoup their money. TLL cover will give you access to the insurance company's lawyers to mount a defense to that subrogation lawsuit; in addition to paying any damages that you are found to be legally liable for.

Taking photos of the building's siding and electrical panels to document its current condition might be useful evidence in case of a future claim. If it is shown that the landlord didn't update the panel, or have other building maintenance up-to-date, then that could quickly throw any allegations that you were negligent for causing the fire out the door and easily close out any such claim.

On the other hand, it could be that this agent is trying to "upsell" you as others already mentioned. When you get the quote, ask the broker why he needed these photos and check the quote carefully to see what he is selling you. You don't have to just accept a bottom-line total premium quote. Ask for a line-by-line breakdown of premiums per coverage and then you can see what you are paying for.
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Old 03-14-2013, 12:53 AM   #12
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Re: Insurance Question


Quote:
Originally Posted by Warren View Post
I just got off the phone with an insurance agent. My last company (Erie), I was with for 3 years. All of a sudden the agent tells me the rates are going up, so he is switching me to something else. I get the quote emailed last week, and it is 30% higher than last years.
A 30% increase is extremely high. Your agent should be giving you an explanation of why it's gone up so much. There could be many reasons. For example, many insurers on the east coast are looking for 5% to 10% rate increases on average this year to make up for catastrophic claims pay-outs re Hurricane Sandy last year. But that still doesn't account for a 30% increase. Did you have a lot of claims? Have your revenues and payroll increased (liability and Workers Comp are calculated using these figures). Did you start doing some new operations that are high hazard compared to last year?

There are many reasons why renewal premiums increase compared to what you were paying last year; and it is the broker's job to give you a a satisfactory explanation of what is going on.
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Old 03-14-2013, 04:38 AM   #13
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Re: Insurance Question


Quote:
Originally Posted by Astrix View Post

A 30% increase is extremely high. Your agent should be giving you an explanation of why it's gone up so much. There could be many reasons. For example, many insurers on the east coast are looking for 5% to 10% rate increases on average this year to make up for catastrophic claims pay-outs re Hurricane Sandy last year. But that still doesn't account for a 30% increase. Did you have a lot of claims? Have your revenues and payroll increased (liability and Workers Comp are calculated using these figures). Did you start doing some new operations that are high hazard compared to last year?

There are many reasons why renewal premiums increase compared to what you were paying last year; and it is the broker's job to give you a a satisfactory explanation of what is going on.
Looks like that is now my former broker. There was a floater added that accounted for 5%, but never a real explanation. Why would any agent add in a floater when the rate had already jumped so much? I have never had a claim in 18 years of doing business.

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