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tdifonzo
11-02-2011, 07:57 PM
Hey Guys,
I'm kinda new to the business. Just started this July. I was curious as to how much liability insurance most guys are carrying. I started out with $500,000 in coverage and was just wondering if that was to much or not enough. What are your thoughts on this?

GMLC
11-02-2011, 09:28 PM
1 million, most commercial/municipal require this much or more.

mnglocker
11-02-2011, 09:29 PM
1mil is on the light side if you ask me. Insurance is cheap.

zturncutter
11-02-2011, 09:41 PM
1 million 2 million aggregate at the minimum.

HLM HustlerZ
11-03-2011, 01:27 AM
We're a partnership. Carrying 1 million with 2 million aggregate, it's only $300.00 a year through Nationwide.

Georgia Lawn
11-03-2011, 10:43 AM
1 million is what we have as well.

tdifonzo
11-03-2011, 01:27 PM
I,m not doing any commercial or municipal accounts just yet. Looks like I will bump it to 1 million though.

JDiepstra
11-03-2011, 01:38 PM
I have 1 million but I think it is WAY overkill. What in God's name am I going to need 1 million in insurance to cover? I'm not going to be killing anyone or blowing their eyes out with rocks or anything like that. Some people may disagree, but I work with safety in mind.

tdifonzo
11-03-2011, 01:45 PM
Those were my thought too,Jdiepstra. I'm just a small guy starting out. I thought 1 million was a little overkill.

JDiepstra
11-03-2011, 01:54 PM
Those were my thought too,Jdiepstra. I'm just a small guy starting out. I thought 1 million was a little overkill.

I think for a smallish solo operator it's plenty. Now if I was a huge company with lots of crews and had a bunch of loaders etc for snow removal and was doing work on a much larger scale, I would think I'd want more. I think your amount of coverage should grow along with the size of the company. Especially when you start hiring the bottom of the barrel to work for you cause it's all you can find. Side note: your insurance doesn't cover stolen property and it's cheap to get that coverage added on so look into it.

mnglocker
11-03-2011, 01:55 PM
I think that was sarcasm on JD's part.

Just think what would happen if you took out the eye of a trial lawyer, or a doctor? They'll sue for lost income, emotional damage, physical pain and suffering etc...

If your insurance policy isn't enough to satisfy them, they'll sue up and beyond your coverage. When the insurance company has 2+ million on the line to lose if they don't lawyer you up well, they'll fight on your behalf allot harder.

JDiepstra
11-03-2011, 01:58 PM
I think that was sarcasm on JD's part.

Just think what would happen if you took out the eye of a trial lawyer, or a doctor? They'll sue for lost income, emotional damage, physical pain and suffering etc...

If your insurance policy isn't enough to satisfy them, they'll sue up and beyond your coverage. When the insurance company has 2+ million on the line to lose if they don't lawyer you up well, they'll fight on your behalf allot harder.

Honestly, I was not. Call me wreckless but I honestly think that as a solo owner operator I am not going to be doing more than $1 million in damage. If I see someone in the area I make dang sure to turn my mower so that the discharge is not facing them and I stop and wait til they are gone to start mowing again. Our job isn't rocket science.

mnglocker
11-03-2011, 02:08 PM
Honestly, I was not. Call me wreckless but I honestly think that as a solo owner operator I am not going to be doing more than $1 million in damage. If I see someone in the area I make dang sure to turn my mower so that the discharge is not facing them and I stop and wait til they are gone to start mowing again. Our job isn't rocket science.

I agree on the not being wreckless part. I've never had to make a claim yet. (knock on wood) But when Murphy comes a knocking, he'll surely kick you in the nuts and the policy price doesn't jump all that much.

I spend $475 a year for 2 million of coverage and all my equipment. That's Cheap in my book.

Patriot Services
11-03-2011, 02:33 PM
A personal injury lawsuit against you and you will see exactly how far a million doesn't go. Remember the 6 million self spilled cup of coffee lawsuit?
Posted via Mobile Device

mnglocker
11-04-2011, 11:32 AM
A personal injury lawsuit against you and you will see exactly how far a million doesn't go. Remember the 6 million self spilled cup of coffee lawsuit?
Posted via Mobile Device

Exactly. This is also why I don't offer coffee. :laugh:

ralph02813
11-04-2011, 01:51 PM
1 million is kind of a standard for commrcial businesses. You may not need it, but what is the difference in cost of 1/2 mil for a million.

moneyclass
11-04-2011, 10:52 PM
I have 1 million but I think it is WAY overkill. What in God's name am I going to need 1 million in insurance to cover? I'm not going to be killing anyone or blowing their eyes out with rocks or anything like that. Some people may disagree, but I work with safety in mind.

I agree. Im also new and everyone is saying get atleast 1 million of insurance. I really dont understand why I would need that. If i break a window or whatever its not gonna cost that much to replace. Maybe im not seeing it but can someone open up my eyes of why you carry so much?

GMLC
11-06-2011, 06:51 AM
The price difference between 500k and 1 mil coverage is like $60 at my agent! And if my memory serves me some of the people who just claimed they don't operate wrecklessly don't use trimmer or mower shields as mentioned in other threads. Get real, accidents happen and 1 million is not a lot of money today especially with personal injury.
Posted via Mobile Device

BBC.lawn.services
11-06-2011, 06:25 PM
you never know when someones dog is going to walk around the corner right on your weed eater...

$400 isn't much to pay to be protected.

cpllawncare
11-06-2011, 07:49 PM
1 million is required here in order to get your pesticide liscense, I just need to know where you guys are getting your insurance so cheap at?

Lawnmouse
11-06-2011, 10:01 PM
Me too I want to know where you get it so cheap, I officially started late this spring, I got my insurance and i made sure it was good to even be contracted in by the city or the school distric and im paying $1100 a year for it 1 million policy and i think it might not be enought. I will paymore if i had to to make sure it was all covered

GMLC
11-07-2011, 06:56 AM
I use state farm. $575 for 1 mil-2 mil agg.
Posted via Mobile Device

Lawnmouse
11-07-2011, 10:10 AM
Thats who I have. Do your policy also cover snow removal? and loss of equipment?

JDiepstra
11-07-2011, 02:33 PM
The price difference between 500k and 1 mil coverage is like $60 at my agent! And if my memory serves me some of the people who just claimed they don't operate wrecklessly don't use trimmer or mower shields as mentioned in other threads. Get real, accidents happen and 1 million is not a lot of money today especially with personal injury.
Posted via Mobile Device

If you mean me, i do not modify my trimmer guards in any way. I have an ocdc on my 60" which i usuall have open 90* so it is basically the same as a mower shield. The other mowers i use have mulch kits on them.

Kelly's Landscaping
11-07-2011, 04:07 PM
I love how many want to cheap out on this item first of all get the million its a must but then go beyond that and insure your equipment and trailers and office and computers. You can insure for replacement cost and your silly not too yes my oldest ztr has 4750 hours on it and with the vac maybe I would see 4k. And that's a big maybe but lets say I got hit by thieves 4 k wouldn't come close to get me a new 60 inch lazer but the 10k its insured for sure will. My most important items are all named specifically in my policy and for the amounts I choose to cover them for not what a depreciated mower or blower or vac is valued at.

Same with my trucks I have 4 they cost about 1100 a year each to insure that's 500k 1000k liability coverage. And also full coverage on my truck like my 89 gmc may not be valued at 8k in the books but that what my check would be for if I was to lose her. You need to get past being cheap and think how will you be able to start right back up with out and interruption of service if the unthinkable happened to you.

Glenn Lawn Care
11-07-2011, 05:54 PM
I'm insured up 1 million in personal injury and 2 million in products completed and 2 million in general aggregate.

Kelly's Landscaping
11-07-2011, 06:36 PM
On this note it has to be a policy written for a business use vehicle. Just having full coverage without disclosing to agent you are using it for business purposes will not cut it. Additionally your trailer and its contents will be a seperate policy itself. I doubt many out there are properly and completely insured for this business.
Posted via Mobile Device

Where would you have gotten it wasn't insured for the business? The insurance is in the company name both business liability and motor vehicle are connected on one policy. The agent has been here twice he has seen our fleet he knows our sales and the policy in question is business. As for trailers and equipment same policy difference costs under the equipment part of our business liability policy. We get the break down though and its exactly as I said it was.

ralph02813
11-08-2011, 07:27 AM
Had a friend who just bought the bike that his dreams have been made of for a while - put up his cash and was left with a loan of $10k - bought the insurance he was mandated to - cheaped out on the theft insurance to save money - guess what? guess who still owes $10 guess who only has the picture of his bike?

jackal
11-08-2011, 07:52 AM
I love how many want to cheap out on this item first of all get the million its a must but then go beyond that and insure your equipment and trailers and office and computers. You can insure for replacement cost and your silly not too yes my oldest ztr has 4750 hours on it and with the vac maybe I would see 4k. And that's a big maybe but lets say I got hit by thieves 4 k wouldn't come close to get me a new 60 inch lazer but the 10k its insured for sure will. My most important items are all named specifically in my policy and for the amounts I choose to cover them for not what a depreciated mower or blower or vac is valued at.

Same with my trucks I have 4 they cost about 1100 a year each to insure that's 500k 1000k liability coverage. And also full coverage on my truck like my 89 gmc may not be valued at 8k in the books but that what my check would be for if I was to lose her. You need to get past being cheap and think how will you be able to start right back up with out and interruption of service if the unthinkable happened to you.

You might want to check with an adjuster to see what they really consider replacement cost. I doubt it will be more than the value of the machine. Replacement cost is what it is, not what it cost new.

Kelly's Landscaping
11-08-2011, 08:50 AM
You might want to check with an adjuster to see what they really consider replacement cost. I doubt it will be more than the value of the machine. Replacement cost is what it is, not what it cost new.

That's good point my wording may be off there when I said replacement. The amount of the insurance on the items I mentioned I wasn't making a guess to what they would pay. I was stating what those items specifically are insured for in my policy by name and that's just 2 of over a dozen listed that way. Then I have another 45k in coverage for smaller items we don't list then there's 25 for office and additional 50k for lost recites ie some how i lose all that months records before I bill the clients.

Snyder's Lawn Inc
11-08-2011, 09:27 AM
I have to carry 2M Im on lot state jobs and I have one Kraft factory
Lot my Snow accounts require that

jackal
11-08-2011, 03:46 PM
That's good point my wording may be off there when I said replacement. The amount of the insurance on the items I mentioned I wasn't making a guess to what they would pay. I was stating what those items specifically are insured for in my policy by name and that's just 2 of over a dozen listed that way. Then I have another 45k in coverage for smaller items we don't list then there's 25 for office and additional 50k for lost recites ie some how i lose all that months records before I bill the clients.

Glad you knew that, you'd be amazed how many don't.

My policy lists anything over 1K seperately.

United Fire and Casualty $722 /yr. 2million agg. liability.

ralph02813
11-08-2011, 05:20 PM
The purpose of insurance is to insure you against unexpected losses. YOU need to decide how much of your loss you are willing to risk. It appears Kelly has chosen to minimize his losses - thus he is willing to pay a price for that - its like the old Kenny Rogers tune the Gambler!!