Truck Insurance and Rating Factors

Myriad factors determine costs for a consumer buying truck insurance. Many factors remain hidden until after the insurance has been purchased and this can be attributed to the uncertainties associated with dates, increase or decrease in the likelihood of a claim being filed and amount.

Age is a key determinant and generally speaking, the younger the age of a driver the higher the likelihood of involvement in accident hence higher premiums.

Years of experience driving a similar vehicle attracts lower premiums but the same driver switching to a different vehicle loses that advantage and attracts higher rates at least until he proves his or her competence.

From an insurer’s point of view, a driver who has been continuously employed for a number of years attracts lower premiums since he or she is seasoned unlike a new driver.

Driving record also counts in that, a driver with moving violations even if incurred while driving a private vehicle attracts higher premiums since statistically; such a driver is more likely to be involved in an accident of some sort.

Number of years insured by the same company also determines policy price for a driver. Additional charges await drivers who have had previous policies cancelled either for non payment of premium or underwriting reasons. Drivers with current policies provide ready and reliable history for a new company which brings down premium costs along with working for a company with clean insurance record as it guarantees sound management and customer understanding of insurance policies.

Higher rates are also likely to be incurred by drivers driving within large cities as opposed to countryside or municipalities. Road condition is also a factor for companies whose drivers drive over certain types of roads or conditions where infrastructure, road congestion, traffic conditions and legal concerns vary.

Cargo also determines costs as cargo insurance is purchased to protect against damage in transit based upon sensitivity and stability of the load, theft or vandalism and fragility.

Type of equipment being driven also determines policy price as newer, modern tractor – trailers with computerized safety equipments are less likely to be involved in an accident. Another factor to consider is maintenance and continued upkeep.

Insurance providers also take into consideration a company drivers’ DOT safety record including safety rating, driver out-of-service violations, SafeStat Inspection and Selection scores, recorded accidents and results from previous compliance reviews. Lower rates are offered by insurers for a “satisfactory” DOT safety rating, below average out – of – service violation rates and a good inspection history.

Outside minimum DOT requirements, additional safety programs like driver hiring and qualification, safety training, driver supervision, vehicle maintenance and inspection, drug and alcohol testing for drivers, accident reporting and investigation and a full DOT compliance can lead to lower policy premiums.

For a trucking company the above mentioned circumstances can play a major role in determining insurance costs. Though others may apply, these are the ones a company can most try to control and are first looked at by insurers.

Small Business Insurance

Venturing into the world of entrepreneurship is a dream that many aspire to. The process can be lengthy ranging from filing paper work, sourcing the necessary financing, leasing an office and recruiting staff. These are just the first steps and many more need to be taken before you hit the road running.

One then needs to consider whether you have taken care of insurance needs in a manner that is not only fitting but leaves you with peace of mind. When you take into consideration all the work that you have done to come this far, this is not a step that you should overlook and you need to sort this matter out before you open your doors to the general public.

It is very likely that you sold your business idea to potential investors. At this point, your business represents a sizeable investment from both you and your business partners. It is therefore very important to protect that investment using small business insurance. This will ensure the long term success of the business as it minimizes financial risks that come from unforeseen contingencies ranging from lawsuits, theft, injuries and natural disasters.

Legislation varies from state to state and unless you are an employer, there is a probability that you do not require to carry small business insurance. This is however not an excuse to take matters lightly considering that  all your business assets, sometimes personal assets – depending on business set up, could be lost in an unforeseen accident, it is a good idea to protect yourself by taking up small business insurance. If you have an LLC or other corporation structure, your personal assets are already protected from business-related liabilities. That said; small business insurance covers your business from losses and should not be overlooked.

Depending on the state in which you do business, requirements for your business in regard to insurance vary. Most states require that business which operate within their jurisdiction and have employees should at the very least have worker’s compensation insurance. This covers your assets in the event that an employee while working or performing a work-related task gets injured. The other commonly mandatory for businesses with employees in many states are state disability and employment insurance.

If you are operating a type of business whereby you a vehicle used for work purposes, you may be required to take out a special commercial auto insurance policy. Such specialized insurance policies are guided by business activities.

Investor or lender interests may require you to take insurance that cover other natural or man-made contingencies that could interrupt cash flow at the business. Such covers include business interruption, fire and life insurance.

In conclusion, small business insurance should not be seen as a must have but rather should have back up. It’s probably you have put a lot of work into your business and it is only prudent that you have policies in place which protect your assets and even when difficult times strike, assures you that operations will not be hindered or stopped.

Small Business Insurance Quotes

A contingency for Locating and purchasing insurance should be part of any good business plan. As an entrepreneur, you would not want to skimp on insurance especially after putting much effort and forethought into setting up the business. Due to tight budgets, costs are an issue and it is understandable if you would not want to pay for more than you have to. After determining the coverage you need, you then should obtain quotes from several small business insurance providers for comparison purposes.

As to the actual process, the first step would be to assess your business risks and an underwriter would come in handy for this purpose. After putting together an application, the underwriter reviews it to determine if the risk-to-benefit factor falls within the carrier’s purview. A premium (the price you pay for the insurance) and a deductible (the amount you have to cover out of pocket before the insurance kicks in) is devised by the underwriter after taking into consideration the type of business you’re running and the inherent risk factors involved. As a guideline, a higher deductable translates into a lower premium and vice versa.

Before signing up for a policy, it is in your best interest to get several small business insurance quotes. It is not strange to find out that what one company offers, may differ significantly from a competitor. In such a situation, it would not be a right assumption that one company is trying to “rip you off” but that different companies specialize in different sorts of insurance and are therefore sometimes in a position to give a better offer.

The smart thing to do would be shopping around for the best deal. Thanks to the internet, nowadays, small business insurance quotes are easy to obtain. Other than a plethora of information about their individual policies and coverage options, many carriers provide online quotes.

The National Federation of Independent Businesses which provides a wide variety of helpful information regarding choosing a policy; is an independent source you are best advised to check out. You will also find information on assessing your company’s inherent risk and helping you determine exactly what sort of insurance and how much of it you need so that should unforeseen circumstances manifest themselves, your business stays safe.

Before finding a reputable licensed agent, do not look over the important matter of doing a little research. The importance of finding a good commercial insurance broke is that he or she will be able to provide additional quotes, help you refine your needs and makes there are no potential gaps in your coverage. Finding the right broker can be a hit or a miss proposition as they may be tempted to sell you a policy that may not exactly suit your needs since most of their work is done on commission basis. To overcome this hurdle, it is advisable to still do more research online then choosing the best among them by looking for reviews posted about different brokers.

Risk Exposures as it applies to Contractors

Anything that can go wrong will go wrong is a familiar Murphy’s law quote which is still as relevant today as when it was first spoken. When it comes to general contractors anything that can go wrong will go wrong – and at the worst possible time is a lesser known but more specific corollary that highlights the unique challenges that face contractors on a daily basis.

To prove the veracity of that statement, you just need to talk to any independent contractor who has been in business for any amount of time.  Frustrating tales of dealing with the little “surprises” that tend to pop up on nearly every job are far too many. These come in the form of equipment malfunctions, building materials that do not arrive on schedule, unpredictable weather and the list goes on and on. All these unwelcomed surprises can take quite toil on a business.

Though significant, these setbacks can be considered mild when compared to the larger risks that contractors face. These risks include on the job injury, mechanical failures, natural disasters and product malfunctions. To guard against these, many contractors carry independent contractor insurance. In fact, many states have made it mandatory for contractors with employees to carry independent contractor insurance.

Such laws are there for the good of both the public and contractor. As a contractor, it would not be pleasant for an unforeseen contingency to take away all that you have achieved by investing a great deal of effort and time into building a contracting business. In today’s litigious society where people sue for the flimsiest of reasons like someone’s coffee being too hot, it’s a very wise decision to maintain all the coverage you can afford especially taking into consideration that construction is a business where accidents take place very easily. In this case, independent contractor insurance is much more a necessity than an option.

By just being in business, there are a myriad of potential risks that face you. For example, an errant nail or drywall screw lying on the sidewalk can prick a passerby and If you are without insurance, you could face a suit that is more the net worth of your company.

As a contractor, you may not be out of the woods even for work that you completed much earlier sometimes stretching back years. You may be liable for instance if a plaintiff brings evidence that while working on a building, you installed some pipes improperly, that improper installation led to some pipes leaking, the leaking produced mold on the walls and the mold in turn caused health problems. That reasoning may seem far fetched but it has happened and you could be held liable and face a suit that grounds your company.

Risks that arise out of liability can be viewed as just the tip of the iceberg when it comes to insurance needs. To get a total picture of the type of independent contractor insurance that you need, it is advisable that you contact a reputable insurance agent to advice you.

Contractors Insurance and Multiple Policies

The things that can potentially go wrong on a job site are very numerous. Seasoned contractors well aware of this insure against such risks. Such covers include protection against possible workman’s compensation claims, injuries to non-employees, malfunctioning of manufacturing equipment to mention but a few.

Due to this wide range of potential risks, many states have legislation that require contractors to acquire some form of insurance against these and other potential litigation probabilities.  That said, whenever one goes to look for an insurance product that fits their need, it can be quite a labyrinthine process rife with the possibility of winding up with insurance that may not be the particular fit for your business needs. To avoid such risks, it is important for one to make sure that they seek out contractor’s insurance quotes and purchase coverage before sealing a contract.

In a nutshell, a company that employs hundreds of workers and subcontractors has wider insurance needs as compared to a small company. This aspect brings out the fact that insurance is not a one size fits all proposition. To ensure that you get adequate coverage at an affordable price, it is advisable that you get a wide range of insurance quotes as early as possible.

If your needs entail a large contracting service, it is very possible that you are going to require multiple insurance policies or a policy that covers different aspects of the day to day operations of your business. Some of these operations that you may need to take out insurance for include insurance for employees, materials, personal injury suits and other potential “at risk” areas.

In insurance, there are many esoteric headings such as “premises and operations risks”. Such risks entail, the potential mishaps that could occur at a customer’s location or other job site, possible injuries not only to employees and other individual’s near the job site but also damages to property, materials or other existing structures near where the work is being carried out. A good insurance policy will provide cover for all such risks. Other possible headings you will come across when perusing possible insurance policies include “products and completed operations risks”. These risks covers injuries or property damage associated even tenuously with materials or construction completed or underway at a site. “Contractual liabilities and independent contractor liability” are the other possible headings you might come across.

With such a wide array of options to consider , it is easy to see why it is necessary to arm yourself with as much information as you possible can prior to meeting with an agent so you have some idea as to the type of questions to ask in regard to policies that might relate to your line of business. After doing an online search and getting a feel of the kind of direction you would want to take, it is advisable that you set up a meeting with more than one reputable insurance agent as you will have a better idea in choosing the right policy if you have several contractors insurance quotes.

Contractors Defense Cost is included in General Liability Insurance

By its very nature, a worksite is a very dangerous place no matter how one looks at it. To their credit, many individual businesses and governmental bodies, normally try their very best by taking precautions and putting in place regulations that govern unfinished construction projects. Such measures are meant to prevent or lessen possibilities of injuries occurring. In most cases, these measures are normally not sufficient due to the inherently problematic area that is worker’s safety. This is precisely why most states require that a contractor working within their jurisdiction must take out Contractors Workers Compensation Insurance.

For a contractor, there are two types of problems that may arise from a lawsuit against his or her company and Contractors Liability Insurance offers protection for both of them. The first challenge that may face a contractor which is covered by Contractors Liability Insurance are damages awarded to a third party. These damages could arise from injuries to an individual where the contractor is held liable and can also extend to claims on property losses.

The second challenge arises from the fact that litigation can be a very costly process. The costs involved include attorney fees, investigation costs, court fees and other related expenses that arise during the course of litigation. These costs have a tendency of adding up and shooting up quite fast and if a contractor is operating without Contractors Liability Insurance, you could find yourself in bankruptcy court not for that particular case but just to settle up legal fees.

Contractors Liability Insurance policy is basically made up of these two factors and essentially covers both the payment of damages on behalf of the insured and all the legal costs that arise from the lawsuit and subsequent defense against such a lawsuit.

For a contactor, claims that result into a lawsuit can arise from any number of reasons but most arise from three broad classes of “legal wrongs”. A contractor may find himself or herself on the business end of a lawsuit..

Civil cases do sometime arise along a legal process that came about from a criminal case whereby a contractor committed criminal acts.  A typical example of such a case would be a situation whereby a contractor knowingly defrauds a client. In most instances, fraud involves criminal liability but the victim can also pursue a civil claim in court arising from the same case and sue the contractor for monetary damages.

In addition, in civil suits, apart from esoteric, non-monetary reasons as punitive damages or emotional distress, a victim may sue for monetary damages. This can lead to the costs to the contractor rising up very quickly. If this happens and a contractor does not have Liability Insurance, within a matter of weeks, a business owner can lose a business which he or she built over a number of years. Punitive damages are generally excluded from contractor insurance policy.

Contractor Insurance a Valuable Requirement

For many professional who make their living through contracted building and development work, contractor insurance is an extremely important protection for them. Other than general contractors, builders, developers, trade and artisan contractors who specialize in such processes as carpentry, plumbing, masonry, electrical, concrete, roofing HVAC and more, are professionals that rely on the protection offered by contractors insurance.

Insurance specialists who are experts in specific types of products offer the best avenue in finding good deals on contractors insurance. With most top providers available online, you can learn about the best insurance products in an effective and efficient way. Using their ability to put together customized solutions that offer the coverage clients need, without the excess costs they do not need, agencies that specialize in contractors insurance products are able to offer the most cost effective solutions.

California is a hot bed of building contractors due to the fact that it is one of the largest states in terms of building and new construction development. There is thus a huge demand for contractor insurance protection and this comes with cost benefits.

Risk associated with type of work and protection desired determines the coverage a contractor needs. Contractor insurance provides financial backing against liabilities for a client who hires a contractor. General liability insurance is the most purchased type of contractors insurance and offers the widest protection. A good plan offers security against reasonable financial loss but you can add more specific types of coverage to the general liability protection for complete protection. For contractors in California, there are a few contractors’ insurance specialists who offer great contractor general liability insurance plans.

Many contracting companies purchase worker’s compensation insurance for their employees. This coverage is compulsory and covers an employee who gets injured on the job. Some plans include a death benefit payable to survivors but it generally offers income, medical and rehabilitation benefits for injured employees involved in work related accidents.

Inland marine insurance is another specialized type of contractor insurance that protects goods in transit.

Disability insurance, another common type of contractors insurance, provides income for people displaced from work for some time due to injury. “Accident and Health Protection” is its other name while other types of coverage include health and life insurance.

A surety bond is another type of protection. This is a financial instrument and not an insurance policy and guarantees performance in case a contractor does not meet obligations and the developer sues. Cities, municipalities and states require license and permit bonds that guarantee compliance with building codes and provide protection to consumers. Other than contractor license bonds, California contractors are required to have contractor workers compensation insurance.

Protection from huge financial liability is a necessity for companies and individuals that are involved in building development. By promoting excellent liability and contractor protection they maintain, companies are able to hire top contracting talent.

Other types of contractors insurance may be an option for contractors that want more complete protection or want protection more customized to their limited needs.

Common Law Suits as it relates to Contractors Insurance

The world is a very uncertain place and one of the places where this is most evident is in the construction business. This fact has led to most reputable contractors carrying general contractors insurance to cover themselves against such uncertainties.  Exposure to lawsuits for a contractor is widespread.

Civil suits, real or imagined infractions, contractors often find themselves facing charges for matters and circumstances that are way beyond their control. In the course of their business life, a contractor finds that the liabilities he or she has to deal with are quite varied.

Personal Injury and workers compensation suits are some of the foremost liability issues that many contracting businesses face. These suits are brought about either by employees or members of the general public allegedly injured at or near a worksite run by the contractor. It could also arise from allegations of injury by a product the contractor had a role in creating. This claim can arise a long time sometimes stretching to months or years after completion of a contract.

Although the right insurance policies cover a contractor from these sorts of claims, it is widely acknowledged that due to past occurrences, the iceberg can be very large.

Carrying contractors insurance liability and workers compensation insurance reduces exposure to suits arising from construction site accidents but you find that suits arising from premises and operation can be very detrimental, creating a significant dent in a contractors business. For a suit to come into play, all it takes is for somebody to be injured by a falling window, a roof tile blown off in a storm, or someone being pierced by an exposed piece of metal. Legal expenses, fees and out of court settlements can chip away hard earned money of a business owner who lacks contractors insurance.

You find that in most cases, contractors take coverage for work done at job sites. This is mostly a customer’s residence or business. This type of insurance apart from covering the contractor for losses on the location, also offers protection from damage done to bodily injury liability. Non-employees are covered under this policy. At virtually every job site, a contractor finds out that these are risks he or she must deal with and the consequences of overlooking or not taking this matter into consideration when drawing up the initial contract can turn out to be a very costly mistake.

Contractor liability insurance does not covers employees from injuries. This risk is normally covered by a separate policy that deals with workers compensation claims.

The importance of insurance can best be appreciated from the fact that even the most conscientious contractor can – through no fault of his or her own find himself or herself facing a lawsuit for any number of reasons which could end up draining the company with some suits turning out to be more than the net worth of the company.