Anyone have an insurance policy on there saws?

[TreeJunkie]

Nathan,,

Your something else there buddy. I never noticed the arrogance before. How many saws do you think one should own to consider themselves a capitalized business?

Newfie,

I'm in the same boat as you. I think i might like the piece of mind. I'm not really wanting to fork over 5-6k to replace saws and climbing gear. Nathan must find 170.00 to be overwhelming.


170= pennies to 5k

 

[TREETX]

It is not arrogance, it is experience. I know what it is like to start an under capitalized business and grow as you gain capital.

The piece of mind may very well be worth it. I can remember waking up in the middle of the night asking myself if I had locked my tool boxes.

In the last 7 years, I have never had my stuff stolen. So, money saved for me and now money in my pocket to pay for gear if I neeed to replace it. As much as having 5-6K in kit stolen would suck, I could pay cash for it tommorrow and still make my next month long vacation next week no problemo. A few years ago, it would have been crippling.

It comes down to your personal opportunity costs.

I have respect for anyone who is brave enough to start their own business. The under capitalized ones especially. It is cool to look back after things get running and look at the living, breathing thing you created.

I just never fully realized the consequences of being so under funded vs. properly funded.

 

[TreeJunkie]

Well enough said.

 

[Toddppm]

I'm not so worried about saws and trimmers , small things getting stolen although a bunch at once would hurt. But... I have equipment ins. for the big things, could you imagine your chipper/grinder/bobcat getting stolen!!!! With that insurance comes a category that covers any small items worth less than $1000 up to a total of $10,000. Have only had a couple small things stolen so far and it's still worth it to me.

Add it to what you charge your customers, it's just another part of doing business.

 

[spacemule]

I consider insurance kind of like going up against a professional gambler. Who walks away with the money?

Dan

That's one way to look at the situation. Of course, when you have insurance, shouldn't you be thankful and consider yourself lucky if you don't have to collect on it? If you do collect on it, aren't you lucky you had the insurance? Seems to me having insurance is a a win-win situation, whereas not having insurance is risking losing a lot. As long as the rates are reasonable (less than $200 is not going to be missed by anyone), why not carry insurance?

 

[spacemule]

The $200 per year figure was to cover a few chainsaws. It comes to way more than that......at least 10 times that figure per year if you are going to cover everything in a tree company. The roughly want %10 of your equipment value per year as a premium.

Well, that is quite a bit. For 10% / year, you could afford to make your own policy I suppose--invest the money in a savings plan, and then it'd be available if needed. With a good cd, you could have the entire value of your equipment in savings in a few years. A big problem, however, is most guys don't have the discipline to save money.

 

[Newfie]

The roughly want %10 of your equipment value per year as a premium.

That's ridiculous. If I had to pay those rates I wouldn't insure large equipment either.I guess there is something to be said for state regulated rates here in Mass. Only about 2.5% to cover vehicles,trailers and chipper. That protects against fire, theft and accident plus any accompanying liabilty issues.

 

[TREETX]

I consider insurance kind of like going up against a professional gambler. Who walks away with the money?

Dan

The insurance company, everytime.

whereas not having insurance is risking losing a lot.

Don't gamble more than you are willing to lose

 

[John Paul Sanborn]

I did not read the whole thread again, since I'm here for a short tie only. So forgive me if I'm reenforcing others statements (Most of you skip my input anyways, since you cannot read it)

Most underwriters have policies, or riders that will cover the loss of specific equipment that is inumerated in the policy. You have to go over everything; desctription, serial numbers...then value them.

What the buinsess man needs to do is figure out weather he can self insure his equipment or not. Add everything up, can you replace it if it gets stolen? I have enough in savings that I can. So the ploicy (around $300/annum for what I own) is not worth it yet.