Insurance Premium to Gross Revenue ratio

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NickfromWI

NickfromWI

King of Splices
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So we're renewing our general liability policy. Because of some weirdness, we're being told the premium should be increasing FIVE HUNDRED PERCENT :O :\: :O :\: :O :\:

So I wanted to ask you guys "how much do you guys pay for insurance" to see if I'm getting ripped off...but then I realized there are so many factors that we can't compare apples to apples AND I'm sure some people don't wanna put all their accounting info out there on the interwebs. So I was thinking we can create a ratio of how much you pay for insurance compared to what your gross reciepts are. Maybe that would allow us to communicate without putting all our laundry out for everyone to see.

So for our company, if they raise the rates to what they say it should be, it would be a 50:1 ratio. Or to put it another way, we would be paying 2% of our gross reciepts for general liability insurance coverage.

How about you?

love
nick
 
Here, liability for my tree company is a percentage of payroll. I have no payroll, so I am at the policy minimum amounts... around $18k in payroll I think.

As a percentage, last year it worked out to roughly half a percent, give or take for tree work specifically.


For equipment company , my general/product liability alone comes out to 12% of my margin on every flipping sale.... ponder that for a moment. Hopefully it will go down substantially when I renew in Feb.
 
Nick, who is your insurance company, not broker? Maybe called the underwriter.

I wonder if I'm in for a surprise.
 
2 million for about $1200/year. Though I'm a tiny potato farmer.

Nothing to do with payroll..... all additionally insured requests are same day for free too.
She's out of San Diego, If you want her number.
 
I don't remember what my business insurance runs. Pretty cheap really. The vehicles are what costs.
 
I may not be remembering right, but I think my liability was around 2,200 this year. What amuses my slightly is that covers 1mil/2mil for me cutting trees over and around buildings, and it was at least half that much just to insure my truck - just because its a commercial policy. I think it must be the time spent on the road and high rate of traffic accidents (even though I don't have a history of accidents).
 
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We currently pay $1,800 but they said it's going up over $11,000. It's for a $2,000,000 policy.

I don't know what they're smoking. Never had a claim. They told me that it's based on payroll. ....which is another way of saying "if the crew gets better and works safer, my giving them a raise will also cost me more in insurance."

I'll be making some calls. This is craziness.


love
nick
 
NickfromWI said:
We currently pay $1,800 but they said it's going up over $11,000. It's for a $2,000,000 policy.

I don't know what they're smoking. Never had a claim. They told me that it's based on payroll. ....which is another way of saying "if the crew gets better and works safer, my giving them a raise will also cost me more in insurance."

I'll be making some calls. This is craziness.


love
nick
Click to expand...
Yeah, that's how my comp goes too. Try calling Eli Clark at focus 1 insurance, he's a broker, should be able to help you if you don't get a good local rate.
 
That is outrageous!

The auto insurance is what really gets me as it is a government mandated police enforced piracy.

A rational policy would be to make individuals assume liability for going on the roads. Insure yourself if you like type thing.
 
It strikes me Nick that someone somewhere in that company has said "let's get rid of this side of of things lets bump the price up, who cares if they stay or not"
To an extent we've all done that on work we don't want, then been amazed when the silly client says yes.
Don't be that client.
 
NickfromWI said:
Are you talking workers comp? I'm saying $11K for general liability

I'll call the lead you gave on Monday!


love
nick
Click to expand...
I meant that's the way my comp works, pay a guy more because he's smoother, safer, more efficient and pay more in comp.
Eli is a good dood, think you'll like him. Tell him I sent you.
 
sotc said:
I meant that's the way my comp works, pay a guy more because he's smoother, safer, more efficient and pay more in comp.
Eli is a good dood, think you'll like him. Tell him I sent you.
Click to expand...

I've thought this too, Willie.

Just now though, it occurs to me that if he's more efficient, you're in a way paying more per hour, for less hours (hopefully), so it sort of a set price for the risk. Maybe a way to not feel so ripped off.
 
I'm at about 5% of gross revenue for a 5 million PL policy that includes statutory liability and covers me for work overseas.
My broker in Melbourne got me a policy with Liberty International which is based out of Boston. It did go up 25% a couple years ago, bam, just like that.
 
I had a 1 million liability policy. I paid $880 for several years. No claims. All of a sudden it went to just under $3000 for 500,000. It didn't seem to matter where I looked, same price. It is a NY thing the agents tell me. NY sucks sometimes, lotta times actually. Not NYC either. About as far away in NY as you can get.
 
They were going to raise my rate pretty good this year and Stratum found another underwriter for me. Still down around 1200 for 1 mill. But I feel a change coming if it is what Nick is saying.
 
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