Big business has almost always had "self insurance" but if you call your
state insurance agency / commission you'll find you have to put up a
pretty high "performance bond" or something to that effect in order to
participate. Also, you'll probably have to go through half a dozen
people to reach anyone that can even talk to you about it. Then you'll
have to call back several times just to get them to send you a copy of
the regulations concerning self insurance! It's a "trade secret" that
the little man is not supposed to know about.

Actually, the insurance companies are betting your house WON'T burn and
you're betting it WILL burn (or have other harm / liability claim, etc.)
when you purchase. If it were not for the banks demanding they be
protected the average person would be better off without insurance -- if
they'd properly "invest" the premiums.

Want to bet there is not financial ties between the loan offices,
mortgage bankers, etc. and the insurance companies? Nice racket isn't
it? :-)

Check out:

http://www.chiff.com/business/small-...sociations.htm

Al

=================


Jon Elson wrote:



Ken wrote:

Gang...
I have a house and a remote garage. All property was insured by
one Company back in 1996. Decided I would open a small business in
the remote garage doing all kinds of general repair work (woodworking,
welding, small gas engine repair, lawntractors, etc). Secured all
necessary paperwork, variances, sales tax licenses, etc., and since my
original homeowners insurance would not write a small commercial
business, I secured a separate company to write the commercial policy.
Everything fine until a couple of years went by - when I received a
cancellation notice from my home insurance company. "Because I
increased risk to their covered interests". Checked with the PA
insurance commission - Yup, they are allowed to do that (after I paid
premiums to them since 1977). Okay, had to find another insurance
company to cover my house. Done (albeit at a much higher rate).
Then after a couple more years, the commercial policy writer says we
are no longer going to write "small business" so you are cancelled.
Checked with home insurance company - they don't write commercial.
Looked around - found another company to write small business (again
at a much higher rate). A week or so ago, send in annual premium for
the commercial policy - last night got a call from them - "We will no
longer write a policy for less than $xxx annual premium" . The $xxx
annual premium is about $50 more than the already considerably higher
premium I had been paying for the commercial coverage. I broke - said
send back my check , cancel my policy, I'm going to close the business
as I don't work for the insurance company and ain't gonna spend every
evening and all weekends working to pay an insurance premium.
Anyone out there have any suggestions? BTW - I just morally can't
gouge my customers to pay an insurance premium. There is a repair
shop not too far from where I'm located that has a big sign ----" We
charge $90/hour to work on your mower. We charge $30 for an estimate"
Ken (depressed).


Yeah, sounds like me! I have a very small manufacturing business, making
electronic gear on contract, mostly. I have a lathe, mill, soldering iron,
and a bunch of electronic test gear. I have a house valued at about $200K,
and I pay about $950 a year for insurance for that. The last insurance
quote I could even obtain a few years ago wanted over $950 to insure
$30,000
worth of business gear! That's a rate 6.7 TIMES higher! Why? Because
criminals burn their businesses with abandon whenever they get in trouble?
Because I'm being lumped in with the financial criminals of Enron, etc.?
Do people with home shops REALLY pose such a high loss rate to the
insurers?
I have serious doubts about it!

The insurance companies have gouged the doctors so bad they are going to
self-insurance, by creating their own insurance pools. Maybe us small
businesses and home businesses should do the same.

The insurance companies will probably lobby the state legislatures to
outlaw self insurance, of course!

Jon