Haul three heifers to him.
Defeats the purpose of me taking over the feed bill. And I'd prefer to monitor the situation here at the farm. He's 6 hours away also.
We found this out a few weeks ago when selling a business. The terms of the deal changed and caused closing to be sped up by 3-4 weeks. We told the buyer to just operate under our insurance until his came through....Insurance company said Nope, surprised me.
It surprises me that the new owner couldn't secure coverage by the close date. An agent or broker for a standard commercial carrier has binding authority. I can usually generate a proposal with an offer to bind in 48 hours after I have all the information. So what did y'all end up doing?
What's cheaper feeding him there or taking the chance of an injury on a high dollar bull.
You really didn't want advice you wanted affirmation.
I'm honestly not sure how it turned out for him. He hit me up about getting with my insurance to do a direct transfer of both policies on a Tuesday afternoon. I got with them and they said it would be difficult to pull off by that Friday at noon when we were scheduled to close. He was paying cash for the biz (it was a chunk) so was really nervous about running through the weekend with no insurance. I ask him on Thursday if we needed to push of closing a few days and he said things were a go so, that was good enough for me. We had the business for 16 yrs and used the insurance one time for storm damage. I still would have been nervous to go even a day without it.
Yeah, there is no such thing as transfering a policy. Wouldn't matter whether you had been a prior client with that carrier...each case is underwritten on its own merits, based on the information the client puts on the application. Even with the same credit score, CLUE report and everything else being the same, their policy will not be the same price as yours with a 16 year renewal history. And dunno what he is talking about "writing a check for the full amount by speed it up". At the point when you know what the premium is, the policy is ready to bind. All the agent has to do is issue the bind request to the carrier and a binder to the client. Doesn't matter if you pay a full annual premium down, or pay a premium finance company a down payment. The premium finance company pays the carrier in full, and you pay them. Agent gets a full 1st year commission that he withholds from the full check or down payment check when you pay them to bind it.
We let them come in for the week of closing and then we stayed to help them the week after closing. He did tell me his policies were quite a bit higher than the quotes we had shown them. Our General Liability Policy had gone up probably 40% in 2022 for no reason at all. They hit him for another 20% the way it sounded. Insurance was getting out of hand along with everything else. We are still helping them some but they seem to be fast learners.
Liability is based on annual receipts, because the chances of getting sued go up the more money a company makes. In Ga it is an annual audit, and often actual on-site audits, at least for a few years til they see you are being honest. Most every state saw huge increases in liability premiums this year. People get more litigious in bad economic times. So does arson. wjhen people start losing homes like they did in 2008 or so, then arson cases also go up.
