i've gotten a quote from them for our wc and gi policies, but wanted to know if anyone else had anything good or bad to say about them. their agent mentioned that they specialize in a few businesses and cabinetmaking/woodworking is one of them.
my primary hesitation is the "like kind and quality" provision for replacing equipment. i've purchased most of my equipment used and have sought deals, so i've never been forced into a hasty purchase. with them providing fair market value for my used equipment, i'd likely be pressed to find comparable deals/value if i had a limited amount of time to procure machines to rebuild and restart my business, if i suffer a major loss.
i'm hoping to never need to call them with a claim, but would like to get an opinion of them.
First, I need to say I use them for all of my insurance in the business. I would highly recommend them to anyone. My agent has gone the extra mile to make sure we are covered where we need to be covered.
Second, if I understand the question correctly, "like kind and quality" would mean if you had a claim, you would need to find replacement machines of like kind and quality, and submit the cost of those machines for a claim. It doesn't mean they would replace your good deals with brand new machines. It does mean they will pay the cost of a similar machine, (called fair market value) regardless of what you actually paid for that machine.
ledgy - i understand the like and kind part. i guess i need to ask what type of payment i can expect on some of my machinery (in the event of a loss). for example, i have a 20 year old scmi slider. it is old but works perfectly and we use it every day. i paid $5100 for it eight years ago. my previous insurance would cover replacement with a new version of our saw (retail would be approximately $15k), so i guess i just need to ask more questions. $5k would probably get us the same saw and we could probably pick it up pretty quickly, but anything less and i don't think we could get the same piece of equipment and/or purchase it right away.
As Ledgy said they have been excellent to deal with. They understand our business which helps a lot. They cut our insurance costs by 40% and gave us more coverage (most of that had to do with wind coverage on our metal building in Florida). We have not had a claim with them but we did have a tailgate stolen from one of our trucks which was too small to claim. We used their service to locate the best deal on a used replacement tailgate. Cannot say enough about them as a partner! Yes you need to ask more questions so you understand their replacement policy.
I have no experience with the company in question but , typically the way replacement insurance works is based off of the price you paid minus depreciation .So it is unlikely you can get a new slider if the old one is damaged more likely an allowance that may cover the cost of a replacement in like condition and age.
I have had federated for a few years now. Price is about 60% of what I had been paying for equivalent insurance.
My understanding when I spoke to my agent about the replacement was that it would cover the cost of buying machinery to replace what I currently have. All my machinery is old and fully depreciated. It's value is very low. But the insurance will pay the full value of buying used machinery that is equivalent to what you had.
I think at the end of the day, the choice you make has to be based primarily on trust. A contract is only as good as the company behind it.
We switched to Federated a couple of years ago and are highly impressed. We switched because of the price and have been more than pleased with the level of service and how much more we are actually getting for our money. Our coverage is much better.
We get true cost replacement, not a percentage or pro-rated version, simply what it costs to get a machine back in operation as fast as possible, and why not, they would be paying for downtime with the business interruption coverage
They have been well taken care of when we needed them without question. Federated gets us and our industry and the coverages we need and don't need. I think of them as a highly valued partner in the overall success of our company. There is the regular insurance component like you'd get from anyone, and then there's all the great things we use daily in the SHIELD program which is employment manuals, safety training, compliance, job applications, interview guides and access to legal guidance if needed included at no extra cost in the our policy. We have also used them recently to perform a business valuation and succession plan to transfer ownership of the company. We have had some claims that been taken care of so well that it made it easier to keep on working and not waste time worrying or solving issues. They also include a lot such as capital equipment coverage should you have a catastrophic machine failure like a bearing coming apart on our CNC. They covered all of the costs associated with the repairs as well as the cost incurred by being without our machine for a couple of weeks. With my old insurer I'd be out at least $20K no question, so you can see why I'm waving their flag.
Spend the time to meet with them and if you are unsure of something ask them questions until you understand it very well. Don't worry about not being an expert or admitting you need some help with understanding coverage, they'll teach you. I used to hate insurance meetings and barely understood what I had for coverage. Now it's productive and costs less.
If you are skeptical of how they can charge less and give you more, here's the basic answer; most underwriter companies figure wood shops are more dangerous and costly to insure than they really are. Federated figured out that most of our industry is actually a pretty safe bet and that their figures could be different for a logging outfit versus a cabinet shop , especially, if they give you the tools to actually have their free formal programs you'd otherwise likely neglect, you'll be an even better bet.
cost-wise, i'm identical to what i'm currently paying with the hardford and selective (wc and gl combined). they appear to cover some extra items in the gl policy, but i'm sure their short comings would be pointed by my hardford/selective broker if he's presenting the policies side-by-side.
10/25 #10: federated insurance/like kind and q ...
So in late Nov 2011 I cut Federated s check for 5k fior our insurance down payment On Dec 6 there was an ice storm that big is and I rolled a truck with an employee. We almost died. Truck was a total loss. I had a check for the balance of the truck less the payoff, Ford was paid and they were already dealing with medical, and my check hadn't been cashed by them
By the time my check went through, everything was settled.
Long story short, I pay them about 60k a year for vehicles, wc, liabilty and we have replacement coverage for new equipment so we can get back to work in a loss.
They are a top notch company I am pretty sure they are debt free. Talk to your agent about options to save on WC with a deductible and talk to them about actual replacement cost. There is just no way to look into the future and see a used machine when you need it. Take the actual time and go through the policy. It will take about 3 hours done right.
I would not hesitate to recommend them to anyone. They are fantastic
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