Insured Plumbers Vs Jacklegs

Dunbar Plumbing · Jul 16, 2006

Cass said:
Trust me A Trust is the way to go for protecting assets. I would urge anyone wanting protection to look into them.

They also can eliminate probate court in the case that someone passes away. Lawyers and probate can eat up much of an estate left behind.

I've heard that as well. I'm in a situation right now related to business that needs to be done in that way.

I've seen many good points taken on this thread. On both sides as well. I think it is definitely worth talking to my insurance company as I feel that the money spent would be fruitful on all points considered. I drive like an idiot sometimes and I surely wouldn't want to give a free ticket to ride for someone that angered me on the road. They win and I'm paying my income for their ignorance. Life isn't fair. (starts crying uncontrollably)

Dunbar Plumbing · Sep 5, 2006

BUMP!

Well.....I did it. It's going to cost me probably $300+ more a year but that is roughly 2-3 service calls.

I raised my truck insurance around a million and the business even higher. I wasn't offered an umbrella policy though....never got a straight answer on that.

Also,

I'm trying to find out if I have "gap" insurance on my commercial vehicle. Anyone knows what this is......knows it is crucial to have....especially if you put tons of miles on your work vehicles or they get damaged quickly in the line of business.

It covers the actual loan amount you are financing and the true value of what your vehicle is worth. You total your vehicle out and don't have that coverage............you have to pay what the margin between those two are.

Sponsor · 2022-01-29T12:20:58-0800

Master Plumber Mark · Sep 5, 2006

Umbrella

its interseting that you could not get a straight answer about an Umbrella
policy......I dont understand why unless they simply dont want to be on the hook to defend you........

I would press them on that....If they are a first class insurance agencey

and not something being run out of someones garage,
they should be willing to offer that to you too.....

I have it on all my personal property.....

and just like my Smith + Wesson 9mm

I wont leave home without it.....

remember you can do those 2 or three extra service calls in one morning

and you can get sued out of your lifes work ---your business ----in one second.........

so honestly you really havent paid SQUAT for what you got.....

Dunbar Plumbing · Sep 10, 2006

Once again I talked to them and now have a million on both my company vehicle and a million on the business.

Here's a little factoid that may be of interest to others:

The insurance company is telling me that any contractor that does work as a service provider has a statute of limitations on work done for 10 years. My insurance company stated that it is getting harder for them (yeah right) since I could cancel my agreement with them....find another and they are still on the hook for 10 years. I don't know what to believe in this matter of what they mean other than they have to own up to it.

They are giving me a quote here soon for an umbrella policy.....they seem at odds for my wanting it as well. It shouldn't mean a hill of beans to them other than they have another policy to make money off of. This is the first time I've belonged to a forum and in turn cost me money indirectly.....but I'm not complaining.

I'll follow up one last time to see how the numbers stack against what was discussed.

Cass · Sep 10, 2006

Maybe they think you are going to scam them and that is why you want all the ins. coverage.

Winslow · Sep 10, 2006

unfortunately, one something happens and lawyers get involved it doesn't matter how nice or decent a person is. When somethng happens, usually everone involved in the project ends up in the litigation, whether they are responsible or not. They will often threated to sue just to get a settlement. When doing a job the customer declines your advice to replace that old pipe, then one week after you finish the water line fails in an area you never touched, they threaten to sue unless you pay them cash. Recently happened to the company I work at.

Cass · Sep 11, 2006

That is why on my invoice, when a customer declines to do what I recomend, I write out that the customer declined to do XYZ and make them initial it as well a sign the invoice.

hj · Sep 11, 2006

insurance

Insurance is like a vacuum breaker on a pedestal tub filler. You may never need it, but if you do, that is the wrong time to be thinking about getting it. I had a person claim that a softener I installed 15 years ago, (they furnished the softener), was installed improperly, so when the tank ruptured it flooded the house.

Master Plumber Mark · Sep 11, 2006

insurance is a necessity

After one year....(thats 365 days)
They can scream and holler all they
want to to my insurance company......

anyone can fool with what I installed
10 years ago....and anyone can make repairs
years later ......

so basically its their word against yours
what went on after you left....

ANYONE can turn up a water heater that you left set on LOW.
....and scald themselves...

they are only allowed one year to sue you
for poor workmanship and expect anything

after the one year warranty is up ...its called a

"frivilous" law suit

and that is what you need that handy

"umbrella" for....

let them duke it out with the litigation
lawyers from the insurance company for the
next 5 years......

Dubldare · Sep 11, 2006

Two years (minimum) in MN.

Kordts · Sep 17, 2006

I started my business a year ago as residential service plumbing shop. Illinois makes plumbers carry half a million bucks worth of ins. I doubled it to a cool million. The reason being is that I have started subbing for some mechanical contractors. I have done service and repair in schools, nukes, and coal burners now. Many of these places make their contractors carry a million, minimum. It isn't that much more.

Dunbar Plumbing · Sep 21, 2006

Whelp, thanks to all for putting this bug in my ear so to speak. As a result of this topic bugging the hell out of me the day it was posted in regards to "bad scenarios".....I now have very good coverage, umbrella coverage, gap lease insurance and substantial coverage in the event of crap hitting the fan.

Took pulling teeth from the insurance company but I managed to get it all taken care of. I'm coming in around $2300/year and just to get the numbers up only raised everything........$500 higher. Worth every penny spent and hope I never have to use the insurance. I've played $100 slots at the gambling boats a couple times and won.....but I don't want to play those odds in the profession that affords my living.

I was told years ago that if you are working in high end homes.....if it costs a million.......it will be 2 million to rebuild/relocate the family and replace the contents.

Kordts · Sep 25, 2006

Rugged,
what is your status with the state? I am an "S Corporation" for tax purposes, but that doesn't shield me for liability purposes. I think I am going to become an LLC for liability reasons. Especially if I hire employees, they can cause bodily injuries to someone, and the lawyers can't come after my checkbook.

Cass · Sep 26, 2006

kordts, look into a trust for protection. In my NSHO they are the way to go for protection. They can, if they are old enough and done right, protect against the IRS.

Dunbar Plumbing · Sep 26, 2006

kordts said:
Rugged,
what is your status with the state? I am an "S Corporation" for tax purposes, but that doesn't shield me for liability purposes. I think I am going to become an LLC for liability reasons. Especially if I hire employees, they can cause bodily injuries to someone, and the lawyers can't come after my checkbook.

I'm the same. I hate the words "limited liability corporation" because people/customers know what that mean. I've had customers ask me if that is what I am and said no. People are getting smarter about the ropes of business due to all the hacks that have tried to ruin the reputation of a few good men.

trust for protection. In my NSHO < Cass.......what is all involved in this and what is NSHO stand for?

Cass · Sep 26, 2006

NSHO = Not So Humble Opinion

Trusts, in a nut shell, are entities that you place your assets in that the trust possesses. A trustee/ trustees controls them in the trust but you don't own them. You can use them for what ever you want. In a legal action you own nothing. When you pass away since you don't own them there is no estate and the trust just keeps on going with whoever is allowed access to the items in the trust and whoever is trustee keeps making decisions with the items in it.

You can place all your trucks and tools Ect. in a trust and lease them to yourself / your corp. Then place all your worldly goods in another.

Master Plumber Mark · Sep 26, 2006

s corp is good

being an S corp is the best way to go......

it insualtes you pretty well from all things that could go
wrong......

thier are lots of things that can be deducted and perks
that are great about one.....

anything more than this you might want to get an
accountants advice,,,,,,

the LLC I thought was something that large , large companies
would put just portions of their assets into....

I know of one peron that owns some condos in Florida and he
has one complex in a LLC and another complex in another LLC
and so on and so on...... they a e all insualted from each other this way.....

by doing this LLC thing you can only sue the one complex or one LLC
and not the whole conglomerate,,,,,,

of course I dont need to worry about things like this yet.......

I am not related to that person

so its all just dust in the wind....

Master Plumber Mark · Jan 16, 2008

RUGGED .....we Wrecked a truck today

today is one of those that makes you wince...

My father decided to pull out in front of a brand new BMW

totalled the new BMW and totalled the Ford van....

at this point no one appears seriousley hurt.

now we see how well the Umbrella insurance works...

TonyKarns · Jan 16, 2008

consider this

Business owners should pay attention to customer service and financial disputes, adding arbitration or mediation clauses in contracts to resolve disputes before they ever become lawsuits.

TMB9862 · Jan 16, 2008

tonykarns said:
Business owners should pay attention to customer service and financial disputes, adding arbitration or mediation clauses in contracts to resolve disputes before they ever become lawsuits.

I think Master Plumber Mark gave an excellent example of why this is not always possible. What do you do when some guy smashes his head as a result of something you aren't responsible for then trys to get a million bucks out of you?

Insured Plumbers Vs Jacklegs

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