WillisNYC Posted September 19, 2009 Share Posted September 19, 2009 I live in the high tax, high regulation, high everything state of NJ. However I was shocked to learn that I would have to pay $105 extra on my liability policy to add an 'additional insured' as one of my locations requested. I paid $795 for a years worth of coverage and thought that was extremely high. I did price it around and found it to be in line with and marginally cheaper than other companies I contacted here. Does everyone else get charged to add additional insureds to their policies? How do you avoid this problem if you are looking at this additional cost? Only 3 of my now 10 locations have asked for a COI and only this one is asking for the additional insured. However I see this potentially as a huge unexpected cost of doing business. Anyone else have this experience? Link to comment Share on other sites More sharing options...
alyssamma Posted September 19, 2009 Share Posted September 19, 2009 Unfortunately, insurance companies will screw you any way they can I liken this to bank fees - something that is charged just because it can be charged. It doesn't cost them anything to add an AI, but they'll charge you for it anyway. Other than shopping around, there isn't too much you can do. However, there are some options... 1) Add the AI to simply get the "certificate" to show the client and then drop them as an AI. This is, of course, dishonest, and I'm in no way advising you to break the law. I'm simply stating that this is how many get around this problem. 2) Give the client a letter stating that you accept all responsibility for any liability issues that arise from your machines and release them from said liability (a hold harmless agreement). 3) Inform the client that you'll need to raise prices to cover the added costs. #2 is your best bet if you can get it to work. Kevin Link to comment Share on other sites More sharing options...
WillisNYC Posted September 24, 2009 Author Share Posted September 24, 2009 Alyssamma I owe you a great big thank you and a kiss! I went with option number 2 and requested to give the buildings owners a 'hold harmless letter'. They went for it and you therefore saved me $105 and gave me ideas on how to prevent this problem in the future. It took a couple days of being persistent in my requests to get them to accept this option, but the machines are going in tomorrow and I am thrilled! Link to comment Share on other sites More sharing options...
alyssamma Posted September 25, 2009 Share Posted September 25, 2009 LOL, np...but check out my name in my sig - Kevin...I'm male, so I'll skip the kiss Alyssamma is a funny handle. When my first daughter was born I was a little over-excited. Like I bought a bunch of toys and clothes before she even left the hospital. Alyssamma stands for Alyssa Marie Mathews...I just made that my handle everywhere and now it has stuck. It is unique, so I never have to worry about adding numbers to it. Kevin Link to comment Share on other sites More sharing options...
WillisNYC Posted September 25, 2009 Author Share Posted September 25, 2009 lol, I was sincerely joking about the kiss! It is a funny thing that I tell my buddies when they do something great to help me out. Link to comment Share on other sites More sharing options...
WillisNYC Posted September 25, 2009 Author Share Posted September 25, 2009 Willis is a last name btw, but I am male and that is my young daughter in the pic that my business is dedicated to. Link to comment Share on other sites More sharing options...
alyssamma Posted September 25, 2009 Share Posted September 25, 2009 Kelly, I'd still have to defer as I'm married Willis, well, we both love our daughters very much Link to comment Share on other sites More sharing options...
lurtsman Posted September 27, 2009 Share Posted September 27, 2009 This whole thread makes me LOL. The initial problem and solution were an excellent addition to the forum though. Is it just a full line thing to have companies complain about insurance? Has anyone tried to get insured through USAA? Link to comment Share on other sites More sharing options...
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