[Quick Hits]

Customers Requiring New Insurance Limits —July

1. Robert Russell, American Pest Solutions, Springfield, Mass.
   Recently two large commercial management firms (one is a mall management firm the other is a national commercial property firm) have asked us to up our liability limits to $5 million. This is the highest I have ever seen. Yes, they are good clients but that’s going to be a good $4,000 increase. Has this become the norm out there?
2. Jerry Martin, Martin Exterminating, Winston-Salem, N.C.
   I had a contractor do that a few years ago and I added the cost to their service charge. I told them it was an extra cost of doing business and had to be passed along. A few weeks later I got a call to cancel all services so I did and removed the rider from my insurance policy. I’m not against having more insurance but I can’t pay for it without increasing the cost to the customer. BTW, I only charged the extra cost and no more. I have a church that asked about increased coverage and I told them that they could add whatever they wanted and I would let them know how much extra it would cost them. The guy said he didn’t think it would cost them since it was my insurance. I told him I carried the legal amount and if they wanted more it would have to be paid by them or they could increase their own insurance. I never heard any more about it so I don’t know if they got more coverage or just forgot about it.
3. Ed Van Istendal, Tomlinson Bomberger Pest Control, Lancaster, Pa.
   Speak with your agent about obtaining an umbrella to cover the increase for that account and let the account know that they will be footing the bill.
4. Gerald Schappert, Bug Doctor, Ocala, Fla., and owner, www.pestcemetery.com 
   
   I feel your pain Robert. I’m going through that now with one. Not only do they want $2 million on liability, they want $1 million on my vehicle. I don’t even park on their property and they take me around in a golf cart. On top of that I have to pay a $95 “glad to know ya” fee.
5. Kenneth Perry, Paratex Pied Piper Pest, Anchorage, Ala.
   This CAN be used to advantage by a pest management company. It would be wise to discuss all potentials with your agent or broker, get some estimate of potential costs for your file, and arrange for the fastest response possible to such a request. That way, you can be first to respond to such a request and make a good impression. Actually, I have tried several times during regulation modifications to get the state of Alaska to raise its paltry $500K body/$300K property limit to at least $1 million. Only one other competitor and I carry a minimum of $2 million. All the rest squeak by on the minimum. In this day and age, one incident could put a business out of business at those minimums. Not to mention that we should be proactive in providing relief to anyone we may harm by mistake.
6. Richard Alexander, Pest Express, Centennial, Colo.
   I have $2 million liability and $2 million umbrella. I’ve had several properties request $5 million coverage and I declined the contracts. In our case, the local property managers got a waiver from their asset managers. So far we’ve been okay. In each of these buildings even the tenants have to provide liability coverage. How many millions are these buildings covered for?
7. Lance Griggs, Spectrum Pest Management, Madison, Ala.
   
   I am dealing with the same exact thing right now. I have had this outdoor mall for three years now. And suddenly they want $3 million liability and $1 million on my truck. They also require workers’ compensation. I am exempt since I am a one-man show. It must be a new trend that we will be seeing. It’s a shame...I could lose the account if they won’t bend with me. I’m going to tell them I’m only on the property basically one day out of the month...for only two hours. I could see if I am there all of the time doing heavy work, etc.
8. Gerald Schappert
   Lance, in Florida you can get an exempt letter for workers’ comp since it’s just you for now. That satisfies most people. Not sure if your state does the same but it may help.