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Thread: Can't get insurance, New business

  1. #1
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    Default Can't get insurance, New business

    My partner and I just purchased a limo, became incorporated, however we have been unable to get insurance. The main reasons we have gotten turn down are:
    1. New Business
    2. Limo is 10 years old
    We are also both 24 years old which i figured probably has some stress on the situation.
    If anyone has any ideas of a insurance company that would insure us please let me know any info would be greatly appreciated.

  2. #2
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    Contact an independent insurance agent and ask them to approach a wholesaler on your behalf that has access to National Indemnity. I suggest you be prepared for a significant cost based upon your location.

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    Thank you Phil, We will try your tactic, and yes got to love Long Island/NY insurance lol

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    I feel for you guys with this insurance thing. I remember when I started in the working world after college and someone explaining that you spend the first 2 days of the week working for the tax man. That was depressing. It seems like limo companies get the extra kick in the ass of spending the next 2 or 3 days of the week working for the insurance man.

  5. #5
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    Quote Originally Posted by FamilyLimo View Post
    I feel for you guys with this insurance thing. I remember when I started in the working world after college and someone explaining that you spend the first 2 days of the week working for the tax man. That was depressing. It seems like limo companies get the extra kick in the ass of spending the next 2 or 3 days of the week working for the insurance man.
    Every industry has its own area of risk which is where the majority of their risk costs are located. With law firms, doctors/hospitals, designated professionals, it is their Professional Liability. With roofers and blasting contractors it is their General Liability. With manufacturing it is their Products Liability. With web designers/bloggers/hosts it is their Cyber Liability. The list goes on.

    People involved in rubber-wheeled transportation have their risk centered on their Auto Liability, which is where the majority of premium costs are located.

    I feel that a lot of transportation companies are so focused on their auto related costs that they go underinsured in most all other areas of risk with their companies.

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    Quote Originally Posted by Limo Insurance King View Post
    Every industry has its own area of risk which is where the majority of their risk costs are located. With law firms, doctors/hospitals, designated professionals, it is their Professional Liability. With roofers and blasting contractors it is their General Liability. With manufacturing it is their Products Liability. With web designers/bloggers/hosts it is their Cyber Liability. The list goes on.

    People involved in rubber-wheeled transportation have their risk centered on their Auto Liability, which is where the majority of premium costs are located.

    I feel that a lot of transportation companies are so focused on their auto related costs that they go underinsured in most all other areas of risk with their companies.
    I don't have a horse in this race, but just looking at it from a logical perspective, if I was a limo operator, I would get the absolute bare minimum coverage and take the maximum risk possible from an insurance standpoint so that I would pay the least to that industry.

    Why? Because if you have one accident, you are out of business anyway. So you're screwed anyway, might as well take the lowest cost screwing.

  7. #7

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    Gotta disagree with the accident/out of business idea. I hit a deer a few years ago on a Saturday night. The claims dept. said it would take a week just to get an adjuster to look at it, another several days to get it approved. My local agent went to bat for me and I had a complete front clip replaced and painted by thursday at noon, did jobs on thurs, fri, sat., never missed a beat. I have heard of vehicles getting tied up for a month or more, guess it depends on your insurance guy.
    Last edited by excaliberlimo; August 13th, 2013 at 11:30 AM.

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    One accident doesn't put you out of business. Your amount of vehicles, time frame of no accidents, costs of accdent, among many many other things factor into the equation.

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    Correct one accident doesn't wipe a company out. It can make the cost of coverage more costly depending on many factors as Brandon mentioned, but rarely is an accident responsible for putting an operation out of business.

    In regards to running a bare-bones operation as far as risk and insurance is concerned, operators are responsible for deciding what they feel is important enough of a risk to purchase insurance for and the rest of the risks are self-insured so to speak by the operator.

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    Quote Originally Posted by Limo Insurance King View Post
    Every industry has its own area of risk which is where the majority of their risk costs are located. With law firms, doctors/hospitals, designated professionals, it is their Professional Liability. With roofers and blasting contractors it is their General Liability. With manufacturing it is their Products Liability. With web designers/bloggers/hosts it is their Cyber Liability. The list goes on.

    People involved in rubber-wheeled transportation have their risk centered on their Auto Liability, which is where the majority of premium costs are located.

    I feel that a lot of transportation companies are so focused on their auto related costs that they go underinsured in most all other areas of risk with their companies.
    Wow, who'd a thought life was so risky.

    Thank goodness for the lawyers and politicians to give us risk-free, no obligations and not your money back guarantees for a risk-free existence.

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    Quote Originally Posted by RoyalFleetInc View Post
    My partner and I just purchased a limo, became incorporated, however we have been unable to get insurance. The main reasons we have gotten turn down are:
    1. New Business
    2. Limo is 10 years old
    We are also both 24 years old which i figured probably has some stress on the situation.
    If anyone has any ideas of a insurance company that would insure us please let me know any info would be greatly appreciated.
    Which company have you applied with, and name me all the companies that have rejected you... These guys are worth trying,,, (800)776-4737 National Continental. Ask them to assign you an agent and you will deal with the agent in your area...

    You should be able to get an insurance for sure. I know guys who came from other countries and just get a car a year after, and get their TLC and Insurance in NYC to start.

    ~Dee

  12. #12
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    Quote Originally Posted by brandon1 View Post
    One accident doesn't put you out of business. Your amount of vehicles, time frame of no accidents, costs of accdent, among many many other things factor into the equation.
    I'm just going off what the seasoned vets on the forum keep saying that everyone is "only one accident from being out of business." So I'll let them defend that claim.

    It certainly seems that if you have a driver do something stupid and hit another car and cause human injuries (I could see a deer being viewed differently), your insurance becomes out of reach.

    To go further on how I would approach the business, I would run 2 separate limo companies, lease and rent everything, and make sure my personal estate is not tied to the business. Then if a driver does something stupid and people are looking to sue for the big payoff, I would just file that company for bankruptcy and let them have a whole lot of nothing. Then I would keep going with the other company, and perhaps picking up the leased cars of the other company.

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    Quote Originally Posted by FamilyLimo View Post
    I'm just going off what the seasoned vets on the forum keep saying that everyone is "only one accident from being out of business." So I'll let them defend that claim.

    It certainly seems that if you have a driver do something stupid and hit another car and cause human injuries (I could see a deer being viewed differently), your insurance becomes out of reach.

    To go further on how I would approach the business, I would run 2 separate limo companies, lease and rent everything, and make sure my personal estate is not tied to the business. Then if a driver does something stupid and people are looking to sue for the big payoff, I would just file that company for bankruptcy and let them have a whole lot of nothing. Then I would keep going with the other company, and perhaps picking up the leased cars of the other company.
    It is a clever idea, but I am not sure it will bring the right results. The hype of Corporation is one of the biggies for lawyers to make money, but it doesn't work when people sue. The judge will always allow to sue the Corporation and the individual person, both when putting the case together; lawyers know this, judge allow this regardless what type of company you have; I have seen this happening all the time.. You can't save your self that easily out of a shit that coming through court...
    Sorry Royal Fleet that you can't get insurance, but write me if you can't get insurance after National Continental, I know a few agents in NJ and NY and they may be able to help.

    ~Dee

  14. #14
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    Then if a driver does something stupid

    Well there's part of the problem, hire professional chauffeurs, that would be a good start to limiting liability.
    I want to die while asleep like my grandfather,
    not screaming in terror like the passengers in his car.

  15. #15
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    Quote Originally Posted by FamilyLimo View Post
    I'm just going off what the seasoned vets on the forum keep saying that everyone is "only one accident from being out of business." So I'll let them defend that claim.

    It certainly seems that if you have a driver do something stupid and hit another car and cause human injuries (I could see a deer being viewed differently), your insurance becomes out of reach.

    To go further on how I would approach the business, I would run 2 separate limo companies, lease and rent everything, and make sure my personal estate is not tied to the business. Then if a driver does something stupid and people are looking to sue for the big payoff, I would just file that company for bankruptcy and let them have a whole lot of nothing. Then I would keep going with the other company, and perhaps picking up the leased cars of the other company.
    That actually works against you. You save lots of money by having multiple vehicles without any claims. Think of it like costco buying in bulk. I have 15 vehicles and I think 1 or 2 claims in almost 5 years and my rates are dirt cheap. If I were to have 15 different policies I can only imagine not only would it be a pain in the ass paperwork wise but each policy would be way more expensive. I'm sure Phil can answer this though as he's the expert.

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