Insurance needs for R.O.W.

[Fagan 13]

Can anyone give me an idea of how much insurance is needed to be able to bid on Right of Way mainance clearing? Have heared as much as $10m before pipeline companies will even look at you. This seems pretty steep. Would be way more than what a small guy could afford to carry. Any thoughts?

Fagan 13

 

[Eagleview]

It may be different to us guys in OZ , but 10 million is the minimum for Public Liability . Believe it or not , that gets spent pretty quick if you damage an Optic Fibre cable or similar . I know of a guy who pulled one up with a Backhoe and his insurance company had to pay $200,000 per hour while it was being repaired . All the Banks ATM's , TAB's and most of the businesses in Brisbane who were out of action claimed losses .

If you are not a company with Workers Compensation insurance , you will also need Medical Accident insurance .

All your vehicles that will be on site will need to have Comprehensive insurance as well .

 

[Fagan 13]

Thank you Iron Horse, I think the R.O.W. will be out for now would be to much to carry if I decide to get in this business. Will just stick with the farmers and mulch cedars.

 

[QwikDraw]

Every company is different. I have to provide a wavier of subrogation to one and most insurance companies won't even write those. It puts all liabilty on you and the not the company you work for.

You will pay a lot for insurance to do ROW.

 

[Fagan 13]

I think I will stay out of that line of work for awhile. I think this business is going to be hard enough just trying to get the farmers and land owners to give me work. I am mostly looking at cutting cedar trees for sure now. Can't see a one horse show doing R.O.W. work and being able to afford that kind of insurance. Thanks for responding QwikDraw.

Fagan 13

 

[Fagan 13]

What about small Electric Co-ops? Is the insurance needs the same?

 

[CurlyDave]

Don't give up before you call your insurance agent and ask.

DW consults for schools and needs $1,000,000 in insurance. It is about $200 per year -- not exactly a dealbreaker.

$10 million is not 10 times as expensive as $1 million, maybe 2 to 3 times as much.

 

[Eagleview]

What about small Electric Co-ops? Is the insurance needs the same?

You are running on luck only , by not having Public Liability insurance on ANY job , even private property . Utility companies run Telco lines , gas lines , water and sewerage lines through ANY property . It is easy to damage their risers or transformer boxes etc especially if you can't see them . What will be worse is if something flies out of your machine and hurts someone , you NEED this insurance . You also need to register ( i think you guys call it license) your machine for road travel . Working beside a road , crossing a road or anywhere else that is open to the public requires you to do so . Many operators don't bother , they will not find a hole big enough to hide in if something ever happens .

 

[beenthere]

Agree with CurlyDave.
Check it out first. And get the ROW work listed on the policy.
And contact the ROW utility before taking someones' hearsay as to what it is. You may miss a good oportunity here if you don't.

And like any business, charge enough to pay for the insurance you need to carry. Just an added expense that needs to be covered, and no different than the cost of fuel or equipment.

 

[QwikDraw]

I am a one man show for the most part and it is worth the cost if you price the jobs right.

I need workers comp too even though I am the only worker...