# Any way around buying required insurance for safeguard?



## Zoly (Feb 2, 2013)

Safeguard has a ton of work in my area of Oswego and Onondaga counties in NY but they want me to buy from their insurers and I am already insured. I can see why they've done it but it seems really unnecessary.


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## GTX63 (Apr 12, 2012)

Zoly said:


> I can see why they've done it but it seems really unnecessary.


Why do you believe they require it?


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## hammerhead (Apr 26, 2012)

then they would loose their kick backs


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## wmhlc (Oct 8, 2012)

no way around it. If you what to work for safeguard you must use the 3 companies. I heard a couple other nationals are switching to that same thing.


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## GTX63 (Apr 12, 2012)

We carried an additional policy thru York Jersey check cashing company. That is all they ever did for us. After 7 years or so of playing that game we cancelled and kept our policies local and thru trusted agents. We would get the occassional letter and email and phone call telling my to insure thru XXX or else. Never cut off from receiving work for the most part because at the time they couldn't find anyone else who was dependable and would cover what they needed. Not only did I save thousands per year in useless policies, ironically, I no longer had any claims made against me. Funny how that worked....

FYI- If you want more work from them, you may need to walk their line and buy from their BIL or golf buddy. Regardless, always have good insurance in place.


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## Blue Granite PPs (Dec 20, 2012)

Call your state insurance department for guidance; i did call NC Department of Insurance, they basically said, Safeguard can "recommend" you to use any NUMBER of insurance companies they want; be it 3 or 300--it is UP to the business owner to deciede to use their own insurance company or go with one of Safeguards "recommended" insurance companies. 

I would think that the insurance companies would be "independent" parties in the process HOWEVER, if Safeguard is funneling business to insurance company A, I am cautious of insurance company A's loyality.


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## ontimepres (Jan 4, 2013)

If you're in the middle of a current policy let Safeguard know that and your recruiter CAN make an exception for you, at least until that policy's expiration date. Like GTX63 I carry an additional policy with York Jersey, it cost me about $500 and the way my insurance agent explained it is that it includes coverage for Safeguard to issues chargebacks up to 5 years after my policy in cancelled.


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## Cleanupman (Nov 23, 2012)

Good luck to you....
I would procede with extreme caution doing any business wioth SG...for some reason they have gotten a VERY big head. Usually when that happenes, something bad is rolling down the road....


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## BRADSConst (Oct 2, 2012)

ontimepres said:


> If you're in the middle of a current policy let Safeguard know that and your recruiter CAN make an exception for you, at least until that policy's expiration date. Like GTX63 I carry an additional policy with York Jersey, it cost me about $500 and the way my insurance agent explained it is that it includes coverage for Safeguard to issues chargebacks up to 5 years after my policy in cancelled.


This is probably just me but who willingly enters into an agreement with a company knowing they can come back after you five years after the fact? I'm justing thinking out load here, but Bleach and Kilz on mold five years later? Little Johnny might be pretty damn sick by then......


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## Splinterpicker (Apr 18, 2012)

Zoly said:


> Safeguard has a ton of work in my area of Oswego and Onondaga counties in NY but they want me to buy from their insurers and I am already insured. I can see why they've done it but it seems really unnecessary.


Wind up and get prepared to be thrown under the bus. When you go to their companies they will put in verbage that makes your insurance primary and theirs secondary. When yours has been maxed out and you are flat Azz broke look back to this warning . Watch for wording like this. I have had another national request they change the verbage to something similar to above. No, NOPE not goin to happen... Go away ..... scram ...... Vamanos


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## GTX63 (Apr 12, 2012)

York Jersey ran about $2700 in the beginning and leveled off around 7k, based on revenues, loss claims, etc. Does the policy protect you? Hope you are not a sole prop. It is a revenue source for Safeguard. If we paint a garage and the neighbor two houses down calls my insurance agent and from left field says we stole his 4 wheeler he would transfer him to "Peggy" and that would be the end of it. Safeguard, yeah not so much. Did I mention it was a revenue source for Safeguard?


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## BPWY (Apr 12, 2012)

The reason they want their buddy's insurance companies used is because there is a back door clause built into the policy that allows the service company easy access to back door your pocket book.


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## Zoly (Feb 2, 2013)

So, I guess what we can take from this is claim you are already locked into a policy until X date you may be able to get out of their requirement. Then following up by ignoring their requests for you to purchase when your "policy expires". Is that about right? It's unfortunate that SG has so much volume.


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## GTX63 (Apr 12, 2012)

I sent over our current policy at the time, which was far above what general contractors normally carry. Once that policy expired they started emailing their "or else" messages, I figured we would play out the string as long as it lasted, but I wasn't getting shook down again. We continued to receive work for several years until we told them no more.


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## 68W30 (Sep 8, 2012)

well they have a " tailored " to them policy drawn up and they are within there rights to have other clauses for them and them only not fair but not illegal, at least on the surface


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## kcbnc (Mar 6, 2013)

I do not know about everywhere else, but in NC our DOI (North Carolina Department of Insurance) will not put up with someone telling a customer that they MUST but their insurance from a particular provider. Our insurance commissioner loves to send those referrals to the AG's office.


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