$5 Million Umbrella

jlpressure

jlpressure

JL Pressure Washing
Have a management company looking to hire us but their insurance requirements ask for a $5 Million Umbrella policy to be on our insurance cert. I work for tons of management companies and this is the first that required any umbrella. I have heard of companies asking for Umbrellas, but $5 mill is that common. Its costly, havent gotten a firm quote yet but I hear it could be as much as $1500 first million and every other million is as much as $750 each.

Every other requirement I meet or exceed with my present policy. Its a $5 - $10 K job with no guarantee for future work, but I do have a good in

Anyone else have these high umbrella policies, is it common.

Man I have added this and that to meet requirements, most cost $50, $100, $300 or more but always under a grand. I wish the management companies would get uniform requirements so if you work for one or dozens you dont have to keep adding this for one company and something else for each and every other one. Just seems like they all are asking for more & more these days
 
Did a job for a bank here a few years back. They required the same. I explained that the cost of what they were requiring would cost me more than what the job was. They waived it.

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Doug Rucker said:
Did a job for a bank here a few years back. They required the same. I explained that the cost of what they were requiring would cost me more than what the job was. They waived it.

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Same thing here Doug. Jeff what other PW company carries that much? None that I know of. I'm pretty sure it's negotiable. We wash buildings not build them.


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Don't really do commercial but a deck job on a complex wanted the same...insurance cost for umbrella alone was more than job. I told them I would be glad to add that to the cost but like Doug said they just waived it.
 
Jeff,
I ran into a similar situation and after the explanation of the cost of the policy and the scope and price of the work, they waived the requiirement that they were seeking. If you have good coverage, it should not be a probLEM.
Best of luck and let us know how you make out.
Mike.
 
I got it as it was required for one of our contracts that we perform monthly services for. Actually Joe W made a suggestion where we bumped our regular GL up to 4 mil and added 1 mi to our umbrella. Saved me about $900.00 over the policy life. My cost went up but this is for 136 locations in 6 states. I wouldn't jump to 5 for a 5k-10k job. If the Management Co. has a contract compliance person..try to talk to them to see if they will get you in at where you want to be.
 
Hey Jeff--I had to have the type of coverage a couple of times. Basically we always carry 2,000,000 coverage but at times I had to bump it up to $4,000,000. My flatbed right now is covered for $1,000,000 because of these garages we just did. The truck I'll drop down to normal coverage where I'll save a $125/month and it's easy to go up and down with the truck.

Tough call. See if they will be reasonable... If there is potential for alot more work you may want to reconsider. Good luck.
 
Steven Button said:
We've got $2mil GL and $3mil umbrella... We've managed to get some clauses and ins. Requirements waived on contracts where they had applied generic terminology not applicable to our service.
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These guys with higher gl aggregate are Ariel guys. Im with you staying with all four on the ground and no new construction they will waive these often ridiculous high limits. Record can also play a part on exceptions


Ron Musgraves text me for questions 480-522-5227 Pressure Washing Institute
 
Ditto what most say above. I've had long time commercial acct that asked for it when owners changed but the policy was more than the yearly contract. They dropped me and two years later they don't have any one doing it cept thier own guys. Not worth the expense for the little commercial work I do.
 
Similar story here. They wanted more insurance and an umbrella of 4mil and the job was only about $400. I explained it to them that the additional insurance will be several times what the job pays and they would not budge. O Well.

I was giving an estimate close by there a few weeks ago and the place is nasty looking and trash all over the place, I guess they could not find a contractor to do the job and probably their maintenance guys walked also. O Well.
 
Jeff,
Sometimes you can get the company to wave the umbrella. If not its not that expensive to have a 5mill policy. Im not sure who you are talking to for insurance but we have a great company we work with and I will post their info later when I get into the office. We have 2mill umbrella and its about $650 per year.
 
Check with Joe Walters Jeff, I had a 5 mil umbrella through him for a decent price, but my local guy was able to give me the same price and policy so I transfered it locally
 
I have insured separate projects at different rates. I'm not paying ten mil coverage for 12 months on a project thats three days of 365

If you do not have a carrier that will get another one.

Always look for your commercial guy when looking for insurance. Never use your family agent unless he is actually commercial oriented. I don't mean he can write it they all can. Just like you could was trucks with a roof pump, doesn't mean you know what's up.
 
It is called a rider. If your agent doesn't know how to do a rider for a job, it might be time to go insurance shopping. If you have a job that the insurance is a major expense, it is time to give two prices. One meeting their requirements, and one that is based on your current insurance.
We carry a minimum of million dollar liability, with a rider for larger jobs. My insurance bill is igh now, but going o be astronomical soon.
 
Here is my guy
Tim Foley-Foley Ins Agency
215-542-8030

Tell him Jim from Innovative sent you. Cant hurt to get a price!
 
Scott Stone said:
It is called a rider. If your agent doesn't know how to do a rider for a job, it might be time to go insurance shopping. If you have a job that the insurance is a major expense, it is time to give two prices. One meeting their requirements, and one that is based on your current insurance.
We carry a minimum of million dollar liability, with a rider for larger jobs. My insurance bill is igh now, but going o be astronomical soon.
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Come on Scott, how high Scott? Let us choke on that Number.....
 
With Nationwide they can only write a new policy for the 12 months.

They gave me the best prices around, maybe I need to do some shopping soon to see who can do the rider thing for those kind of jobs with temporary increases in coverage and umbrellas.
 
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