insurance

I got my Genral liability estimate for my roofing buisness here in NJ. They quoted me for $12,967.00 for 2 million in coverage and another $1,800.00 for an additional 1 million umbrella! No vehicle. I have clients requesting 3 mill coverage.So thats $14,767.00 based on payroll of $77,300.00, thats based on 1 employee making $45,000.00 and the owner making $32,000.00 ! Can you believe that muck. They said if i made more i would be charged more and if i made less, they Would Not pay me back the adjustment. I need a money tree quick. Any suggestions!

One trick I've learned many years ago is to have the home owner pay for the materials. I have an account of course and if they pay with a check I get 2% back to my general account.

Did it this way for my own accounants roof and he said there's nothing wrong with it.

The best part is it keeps my liability insurance down and it keeps my inc yearly one time fee down.

Right.

I think part of what causes confusion for people is how the exposure is measured. If your car gets one mile per gallon and gas costs one dollar per gallon, it costs ten dollars to drive ten miles. So if you pay ten dollars in advance and then drive twenty miles, you ought not get upset when it costs twenty dollars.

A lot of companies now apply the rate to your gross receipts. That could seem like "how much I make." No insurance company would apply a rate to a profit or a net adjusted gross. If you had a net loss, they'd be stuck defending you for nothing.

It has to be assessed against the amount of "activity" since it is the activity that creates the risk. If you measure the activity by wages paid, the more you "make" (in gross wages paid) the more you pay.

But I've only seen policies where the Named Insured (you) are charged out at a predetermined "wage" like 30,000 or some such flat figure. Because...what if you don't really pay yourself a wage at all (you just "make" what's left after the bills are paid" but you are out working every day (creating "risk.")

My agent told me it don't matter how much I make it depends on how much exposure and what is subbed out than impacts the insurance premium.

In receipt of all the emails in regards to insurance questions we advertise with Roofers Coffee shop and write Roofers in California & Nevada WC GL UMbrella Bonds etc and know all the in's and outs of coverage so if any roofers from those States want to discuss coverage or want quotes call 925-977-9220 Ext 233 and ask for Kevin

Our company is Easterly Surety & Insurance Services, Inc.

I will be shopping soon, and probably trying some of the numbers on here. Egg is right, ask more than too many questions. I'm learning the hard way. We had GL through a local agent that we knew. We had this insurance for 15 years without a single claim! That was until last year. It turns out that our policy didn't include water intrusion!!

Nice post egg.

It could also be worth noting to the underwriter, if it's true, that you do not work on multi-family housing units. If you have said coverage in your quote, it could make a big difference by excluding coverage for such projects.

However, looking at it from an insurance carriers perspective, I must say that I don't know a single roofer to whom I would say "Sure, I'll cover you for $2,000,000 if you give me $12,000" ........ not even me. LOL

I went right out and found some but on closer inspection it turned out to be some crumbling styrofoam. Little styrofoam snowmen just don't do it for me. They got a ton in Plumas county but it pretty much missed us completely. A few years ago we spent New Years at Cannon Beach up in your country and on our way out we got caught in a near white-out right there in full view of the ocean. Been over thirty years since we've had snow right here. They got a decent dose of it in Lake County just a stone's throw northeast of us but all we got was cold and rain.

Chris, it seems you have a whole lot of anxiety and only one quote. Get more quotes. More than one insurer is writing policies for roofers. Even if you feel hopelessly loyal to your broker/agent, he/she should be able to give you an array of choices. What is with that?

Do the math. You are apparently being charged about 17% of gross payroll. If the Named Insured is being charged out at a flat gross of 32,000, I am assuming that would be the minimum premium. Go back and tell your agent you can't afford the one helper so you are going to start the year going it alone. At the end of the year, you will owe 17% of gross wage on anybody else you hire but nothing more on yourself. That would help you get over the capital outlay hurdle, but make damned sure you put enough aside to cover the extra premium at year-end audit. Do the same type of math for the umbrella rate and save that part too.

Don't take my word for this. Ask your agent. If you don't understand his answers, ask again. If you still don't understand, ask another agent. You don't have to sit still with one bid. Know your policy and exactly what the rates are and how they are applied. You can get into roofing with trade skill, but to stay in it you have to work these guys the same way they work you. A good broker is interested in making a profit but also interested in being honest and working with clients who understand insurance. A bad broker just sells you something and moves onto the next client.

If you are up against a minimum premium, you have to put a low estimate on volume and make up the earned premium difference later. Insurance premium is always assessed as a percentage of something, it's never just a one-shot fee that covers an unknown amount of risk. Yes they do an estimate to come up with an (estimated) annual policy premium, but they always re-calculate it at year-end.

Ask what exclusions there are. Ask about deductibles. Ask how much you can save if you don't do certain types of work. Ask, ask, and keep asking until you can make a good decision.

I'm a one man show (no employees / no secretary). I currently have a $2 million liability policy for $3,200 a year.

Mine has been the same for a couple years now, $4,250 based on $80K subbing, half a million exposure ($55K materials) 2 million dollar policy.

The reports for increases for 2011 has been insurance so who knows.

Have any of you guys got quotes from the NRCA Professional Liability Insurance Program? They claim premiums start at $5 for revenue under $400,000. Call 1-800-842-3653 EXT.223 for info. I just seen an ad for them in this months magazine.

thats why I got out of the business. They wanted $9000.00 on January 1 deposit. That was with me only working. Just cant do those numbers anymore. Not enough work to support the insurance and my family. 35 years without a single claim. I would love to have my money back.

So how much would be for a 1 man working on his own?