View Full Version : Its my first year and want liability insurance
01-07-2000, 06:43 PM
I own 3 walkbehinds 2 blowers 2 weed wips and a 16 ft trailer its not my first year its actually my second but i started late last year and i bought everything all at once and now i want to make sure i keep it. Even if it gets stolen or an accident or something. But i have just one problem and that is my driving record. It is bad. Do i need to get the trailer with the auto and how much do you guys pay for your equipment and what kind of coverage.Thanks for your response.
01-07-2000, 06:51 PM
Hi, If I am correct in my thinking, your equipment will be covered under your general liability insurance, I know mine is. I pay for my general liability insurance once a year and when I buy new equipment it is added on. Your auto insurance will cover you if, for some unlikely reason, your trailer came loose and plowed in to another car, but as far as theft, fire, that is covered under your g.l. insurance. I have mine with auto owners and it costs me around 650.00 per year for $300,000.00 I wouldn't think it would have any affect on your poor driving record but it might. If you've never had g.l. insurance they may give you a hard time just getting it. Luckily my ex-brother in law is my insurance agent and he helped me out. Thats my theory!
01-08-2000, 06:36 AM
Commercial insurance on a vehicle and a trailor ran for me about 120$ a month. 300000/500000$ something like that. Not really affordable for a lawn service business. I went back to regular insurance. On the vehicle. Commercial on the trailor. Somethings would be nice to have, but what can you do. I went 2 insurance companies. Both ask me if it was for personal use. I was told that even people pulling boats should have commercial insurance. But we all know that most don't. I was told you must list your trailor and the equipment on the trailor. In order for it to be covered. This means of course that its going to cost more. Just pray you don't have an accident. I hired a guy who did have an accident so this is from personal experience. I had commercial insurance on the trailor at the time. It was covered. The truck had regular insurance and it was covered. The tractor on the trailor was not listed and it was not covered:(.<br>Charles<br>
01-08-2000, 06:52 AM
Generally, a Business policy has a "Inland Marine" rider. It's usually an attachment to your gl policy. If not specified, your gl won't cover lost/stolen equipemnt. A typical inland marine policy will run $7-12 annually (where I'm from anyway) per $1000.00 equipment. (around 1% or so.)<p>
01-08-2000, 07:26 AM
General liability insurance should be in place before you set foot on anyones property to do any type of work. General lialibity policies for a one man operation that does basic work such as mowing, but no dangerous work(pesticides, tree work, underground/excivation) is not all that expensive. I think that when I first started, it was in the heighborhood of $300 per year for $1,000,000 coverage. You can also get an optional inland marine rider that will cover your equipment. You can choose the amount of coverage you want and also the deductibles. Your general liability will cover damage to others property/person caused by you/your machinery, but not pay for damage to your mowers from an accident/theft/fire. That is why you need an inland marine attachment. <p>Most (all?) inland marine policies will have a set limit that no one item can exceed. For example: if you have a $10,000 policy, with no one item to exceed $500, and you have a claim for your ZTR or walk behind, they are only going to give you $500. Larger items have to be scheduled. That is, they want a copy of your recipt/pictures/serial numbers, ect. for items that cost more than your scheduled amount. Some insurance co's will let you change the limits of scheduling.<p>You definatly want to make sure that you have BUSINESS AUTO on your trucks. If you only have normal personal coverage, and you are in an accident during the course of doing business, THEY WILL NOT PAY. I know this, because it happened to a friend of mine. He was cancelled, and had to go through a huge mess and pay huge amounts for his new insurance. <p>Call around and tell the agent/broker what you are doing, and they will tell you what you need. Be honest, if you are going to do tree work, or plow snow, this may increase your premiums, but it is worth it. Insurance companies have a lot of money, more than you, and can find out what you are doing, and cancel you if you are not telling them.<p>If you are going to have people working for you, you will need workers compansation insurance. This will cover your help if they are hurt on your time. <p>ANother good thing to look into is an umbrella policy. This covers any gaps in your other policies. If your limits are excedded, your umbrella policy kicks in.<p>Bottom line is, talk to a few agents, and tell them everything you do, and be honest. Tell them if you use employees, subcontractors, ect. They do this every day, and know what you need and don't need.
01-08-2000, 10:04 AM
Im in CT, my GL policy runs me $575 per year including $1,000,000 coverage and $7000 for listed equipment theft coverage(they only pay cash value for equip less 500 so I figure thats enough, wont ever cover trimmers and other small stuff so be sure to chain it up in the truck) Covers landscaping and "street cleaning" which means plowing. Business auto runs $1200 per year, includes plowing, 300k single limit with collision and comp. $250 deductible on all. If you hit someone with a plow, or something happens to your trailer while going to a job and you dont have a commercial auto policy you are S-C-R-E-W-E-D!!! The GL covers you if your mower puts a stone thru someones window or skull, also covers your slip-and-fall cases.<p>Two things my policy requires, one it doesnt cover collapse so I cant do trenching or stuff like that, and Im limited to $10,800 annual payroll. Also all subcontractors need to submit an ACORD form to me, and Im audited every March to ensure I have payroll under the limits and have all the sub's insurance forms.<p>My homeowners policy only covers $2500 of business equipment so I needed the rider. <p>Bill
01-10-2000, 04:23 PM
I just got a quote on my service and liability is going to be 353 a year for 500,000 worth of coverage and they said the truck would be 750 give or take 50 for full coverage. I am a good driver though.
01-10-2000, 09:34 PM
A little help my wife got busted doing 97 in a 65 mph zone lets say that hurts on insurance. But It makes very little differct with a com. policy you pay more for bad driving record on personal. SO your rates for your vechile will most likely drop in price. As far as trailer it needs its own policy under com. INS. its not covered by the tow vechile but the cost is little. As far as equipment like a lot og guys have already said it falls in a policy called inland mairne just make sure you insure it at what it will cost to replace it. And higher ins. is always better. It may cost a little more but if your a sole or parnter company anything that happens could cost you for the rest of your life. So a little higher ins. is well worth it cost. A guy I had a yard with his driver lost control of the truck hit 3 cars then took out a fence and a hugh chunk of a tree before stopping. Total cost for that acceindt was $300,000 plus a couple of law suites includeing one from the state since the fence and tree he hit was state property. They said the tree was some old histirc tree that had some hugh value and so fore well he was under ins. and lost his company. Forced auctuion by the courts. He wishes he had a little higher ins. policy now. So you never know spend a little extra its well worth it. Goood luck.
MJM Landscaping Inc
01-11-2000, 02:55 PM
I would strongly advise everyone to go over ther policy every year at least(with their agent) and make sure everything is covered and covered how you want. Ive been in buisness for about 8 years now and I use to renew my policy without looking at it. 2 years ago I was bored and started going through it and noticed that it EXCLUDED snow removal activities. I specifically asked for it (Ive been plowing since the start of my co.) as it turned out It was an oversight that should have been in but what a mistake that could have been. Also, in regards to equipment, most equipment is NOT under replacement value unless you specifically ask for it. Ask for it. It might be a little more expensive but if your in this for the long haul its worth it. Suppose one of your drivers has an accident that totals everything he carrying. 15k truck, 3k trailer,(2)10k riders, 3k walkbehind, 2k misc.=43k! You may only receive 15-20k from insurance. Would you be able to put up the rest of the money to keep from losing your clients? But with replacement value you would get all brand new equipment. Hope this helps.<br>Mark
01-12-2000, 05:07 AM
I spent quite a bit of time researching insurance, and have yet to find a co that will pay "replacement", i.e., price of new, equipment. They all pay for repair, or cash value, which in many cases may be half of what a new one goes for.<p>It also doesnt make sense to overinsure on equipment, just because you insure your equipment thats worth 10k for 100k they arent going to pay you 100k if you lose it all. Also keep receipts photos serial numbers in a safe place, in case of theft thats all you will ahve to go by.<p>Bill
01-16-2000, 05:04 PM
Mattingly- I remember the days of the $350 premium. Savor them, they wont last. I refer to them as the good old says. As soon as you start to grow, your premiums will jump. Look to be paying $1000 minimum per year soon. <p>Not trying to scare you, but that is what happens, as you do more, you have a greater exposure, and the more exposure, the more your premium will be. Your premiums will increase with payroll, and also amounts that you pay to subcontractors. They will also adjust your premiums by your gross recipts. Just be prepared for it to rise.
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