Will someone bail me out… please

The old saying is that “nothing is certain but death and taxes…“, but that list is not complete in modern times.  Insurance premiums are just as certain and they are killing me.

As I read this morning that the next great bail out might be for insurance companies, I can assure that industry that I, my business, and my family, are already giving until it hurts.  I apologize if it is not enough, we’re doing the best we can for you.

To wit… within the last twelve months I have paid out the following amounts:

  • Life insurance -  $7,548.00
  • Personal Disability -  $2,830.00
  • Health policy -  $8,100.00
  • Homeowners – $1,349.00
  • Personal Umbrella – $550.00
  • Personal Auto – $3,098.00
  • Worker’s Comp – business – $31,689.00
  • General Liability – business – $2,687.00
  • Inland Marine Cargo – business – $2,847.00
  • Fire and Casualty – business – $365.00
  • Auto – business – $5,650.00
  • Additional Liability – business – $565.00
  • Unemployment (Fed/state) – business – $2,165.00

All told, that is a whopping $69,443.00 paid to insurance companies by me and my little business within just the past twelve months.  And they are the ones in need of a bail out??????  Puleez.

If there was a way to do it legally, I would happily take that $69,000 and self-insure my family and my business for all perils.  But if my claims ended up exceeding the $69,000 per year, I seriously doubt that the Fed would come and bail me out.

I’m really getting tired of this.

(BTW… if any insurers out there believe they can save me a bunch of money, reply in the comments below and leave your phone number but don’t contact me directly without my permission.  I’m not above a bidding war, but I’m a pretty busy guy.)

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  1. Posted October 25, 2008 at 1:26 pm | Permalink

    Good God! That’s nuts!

  2. Jeff Deal
    Posted October 25, 2008 at 1:36 pm | Permalink

    That does look steep, particularly your workers’ comp. How many employees do you have?

  3. dhoggard
    Posted October 25, 2008 at 1:38 pm | Permalink

    Agreed, Roch.

    All of the policies, save for our life and health, are required by either law or – in the case of my general liability/cargo business policies – by general contract.

    Screw taxes (even though you wouldn’t believe my tax bills either)… insurance is the likely culprit in the downfall of many small businesses.

  4. Posted October 25, 2008 at 1:44 pm | Permalink

    “insurance is the likely culprit in the downfall of many small businesses.”

    Without a doubt. Years ago I lost my business because I couldn’t afford the claim against a policy I didn’t have because I couldn’t afford the coverage. I spent 10 years paying off that claim with my wages from jobs I worked after I folded.

  5. dhoggard
    Posted October 25, 2008 at 1:48 pm | Permalink

    Jeff, I have nine.

    In all fairness to that number… I grew a lot in 2007 so my annual audit picked up the excess. I had to pay a big chunk in ’08 for the shortfall in ’07 coverage.

    But still… Worker’s Comp is one hell of a drain.

    Adding to that drain for ’08… I, myself, was not covered by WC in 2007. I have since added myself as a statutory salaried employee (no longer a sole proprietor). So my premium will rise considerably during the next audit.

  6. Posted October 25, 2008 at 4:53 pm | Permalink

    Not that this undermines your main point (and it is not intended to), but I think the bailout in question would be for life insurance only.

    Quasi-relatedly, the fed bailout approved by Congress was supposed to loosen up the market for credit. But Joe Nocera at the Times reports that banks will be using it for acquisitions instead. Aren’t you glad we’re giving them our money?

  7. Lona
    Posted November 24, 2008 at 1:05 pm | Permalink

    We are also a struggling company in business for 14 years. It is seasonal, so we are down from Nov 8 through April 15. After paying all of my insurances, payroll and payroll taxes, utilities, unemploymnet etc, etc, – I find this will be the first year I will not have enough cash to make it through the winter months. We are an older couple, but we both need to find a job for the next few months, and that will be a trip in itself. I don’t need a bail out, I need a loan, and that is another joke these days.

  8. Lona
    Posted November 24, 2008 at 1:07 pm | Permalink

    One more thing, I know there are folks out there that would like to help our small businesses, but where are they? The government doesn’t care. Like I said, I don’t want anything for free, just someone that could help out with a low interest loan. They would make more money from interest from us than the banks, that’s for sure.

  9. Posted December 31, 2008 at 6:54 am | Permalink

    I got tired of struggling, and I resorted to begging for help online. And got help keeping my lights on and groceries to get us through the month. The goverment doesn’t care about us. How else is we to survive. Begging worked for me and I’m not ashamed. This site im grateful to have found http://www.bailafamilyout.com

  10. Posted January 8, 2009 at 1:55 pm | Permalink

    Very good post, thanks!