Landscape Architect Articles

Mowing Through the Insurance Weeds09-07-16 | Feature

Mowing Through the Insurance Weeds
7 Questions to Ask When Evaluating Commercial Insurance Options
By Brett Stalnaker, Progressive Insurance

According to the California Department of Insurance, commercial vehicle exposures can be more complex than personal vehicle exposures requiring specialty coverages to be considered based on the individual needs of a business. The coverage can protect a company from any liability stemming from vehicles used for business purposes or any damage to the covered vehicles. For coverage purposes, vehicles are classified by weight (light, medium, heavy, extra heavy) and by type of use.
Photo: Isuzu Commercial Truck of America Inc.

No matter how big or small your business is, you can learn a lot about which insurer best fits your needs by first doing a little research. Here are a few things to keep in mind to help you make the most informed decision:

Is it time for a review?
If you've had the same insurance plan for more than a few years, ask your insurer to review your policy. Make sure your coverages, limits, vehicle values and premiums are current.

Does the insurer have experience in your line of business?
Check to see if the insurer has a history of handling a landscaping business like yours. If you can't find the information you're looking for, don't be afraid to ask about his or her experience. Be specific about what you ask.

What about the claims reps?
Claims service is probably the most important thing to consider when you shop. It's the physical product you get when you buy insurance "?u the service you receive when the unexpected happens. Find out if they have claims reps that know your business. If you have an incident, it's important to find a company with dedicated commercial claims representatives, not general reps who work for a third party. Specialized claims reps will help get you back to work quicker. Time is money in your line of work.

Can your coverage be designed to fit your needs?
As you know, each business is unique and not all insurance packages would fit your needs. Make sure you fully understand what's covered. Since your truck is important for getting to work and servicing your clients, check if your insurer offers rental vehicle coverage. It provides you with a temporary vehicle if yours is out of service. If you tow a trailer, ask about trailer coverage, and if it's covered in your policy (or if it's extra). Also, in some cases, a landscaping business is seasonal, so whether you park your vehicle during the off-season or use it for snowplowing, make sure you're covered for the intended use of the vehicle.

Claims service is essentially the product you are paying for when you purchase insurance. It is recommended that the insurance company you choose has dedicated commercial claims representatives, not third party representatives, and that those reps know your business.
Photo: Weed Man USA

Owners should always be certain the intended use of their vehicles are covered, and try to tailor the policy to the specific needs of their business. If you use your vehicles for different purposes throughout the year, make sure the policy reflects that. Try to take advantage of any discounts such as packaging your business vehicle insurance with your business owner or general liability insurance.
Photo: SnowEx

What defines the policy with the best value?
Value doesn't always have to be about monetary value. An insurer who has experience with your type of business can save you money in the long run. Consider all the factors, like coverage customization, customer service, and special promotions. Your policy should meet your and your business's unique needs. Once you're comfortable with what your insurer is covering, then ask about discounts.

What discounts are available?
After you've evaluated the value of what you're getting, check for discounts. Most insurers offer easy ways to save money. At Progressive, we'll give you a discount for bundling policies or paying your premium in full up front. Here a few discounts you should ask about:

• Business experience discount. This is for customers who have been in business more than three years.
• Multiple-policies discount. This discount applies if you have more than one policy with the same company. An example would be packaging your business vehicle insurance with your business owner or general liability insurance.
• Package discount. If you have general liability or business owner insurance, you could be eligible to save money on your auto insurance with this discount.

Who can help me?
Contact your insurance provider or independent agent. They will help you navigate the process. Local agents in particular know your community and keep up with the latest coverages and trends. They can be especially helpful for specialized insurance needs.

Brett Stalnaker is a commercial lines product manager at Progressive Insurance. In business since 1937, the company is a market leader in commercial auto insurance and the number one truck insurer. https://www.progressivecommercial.com

As seen in LC/DBM magazine, September 2016.