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View Full Version : How much insurance??????


Theroadrage
04-30-2003, 07:49 PM
I'm just trying to get started. i dont have yards yet but when i do how much insurance should i get? then when i get my tax ID and buisness liscense how much is this gonna cost me at the end of the year with lets say 10 to 20 yards at $35-$60 dollars per yard.i dont want to end up paying my behind in taxes at the end of the year when i'm trying to work my 40 hours then grass cutting on the side and still struggling.(maybe not "on the side" soon enough,full time hopefully!!) Your feedback will be greatly appreciated.:cry: :dizzy: :confused:

Green Pastures
04-30-2003, 08:31 PM
You'll need at least $1 million in liability to do commercial work.

Theroadrage
04-30-2003, 08:34 PM
Ok,whats the lowest residential insurance i can get away with and still be comfortable?

wriken
04-30-2003, 09:15 PM
Originally posted by Theroadrage
Ok,whats the lowest residential insurance i can get away with and still be comfortable?

comfortable?=1 million:)

jeff_0
04-30-2003, 09:18 PM
i have 500,000, it's really cheap.. just a couple hundred of dollars..

Theroadrage
04-30-2003, 09:21 PM
Originally posted by wriken
comfortable?=1 million:) For a small residential lawn service?C'mon now people,lets be serious.:alien:

Theroadrage
04-30-2003, 09:23 PM
Thanks jeff_o.I appreciate the feedback!

Theroadrage
04-30-2003, 09:29 PM
Originally posted by Theroadrage
I'm just trying to get started. i dont have yards yet but when i do how much insurance should i get? then when i get my tax ID and buisness liscense how much is this gonna cost me at the end of the year with lets say 10 to 20 yards at $35-$60 dollars per yard.i dont want to end up paying my behind in taxes at the end of the year when i'm trying to work my 40 hours then grass cutting on the side and still struggling.(maybe not "on the side" soon enough,full time hopefully!!) Your feedback will be greatly appreciated.:cry: :dizzy: :confused: By the way.......those 40 hours I work on my regular job are cutting grass for a large school system(120+ facilities).Should i mention my experience as far as years on my fliers?

Gr grass n Hi tides
05-04-2003, 09:35 PM
$1,000,000 is not much money these days if an accident happens. Take it from me, I've been in litigation for 10 years. Freakish things happen, that's why they're called accidents.

Suppose for example your mower hits part of a metal clothes hanger or a rock hidden in tall grass, then it's propelled through a 50 yo man's eye and kills him. At 50 yo this man was in the height of his earning potential (let's just say 50k/yr. for argument sake). If his life expectancy is 74 years, then total lost earnings alone is $1,200,000. You're already underinsured !!!!!!!!!! That doesn't take into consideration other compensable losses for his family. Maybe he has a couple of children and a wife. Then what?

Or, you're out there trucking along on your hydro with your ear plugs in & as you pass by a vehicle parked in the driveway a 4 yo darts out & somehow gets a foot under your deck.........lifetime impairment rating. You get the idea.

Besides, I don't think any of us would want to NOT have a way to fix a problem we caused.

Theroadrage
05-05-2003, 07:32 PM
Originally posted by Gr grass n Hi tides
$1,000,000 is not much money these days if an accident happens. Take it from me, I've been in litigation for 10 years. Freakish things happen, that's why they're called accidents.

Suppose for example your mower hits part of a metal clothes hanger or a rock hidden in tall grass, then it's propelled through a 50 yo man's eye and kills him. At 50 yo this man was in the height of his earning potential (let's just say 50k/yr. for argument sake). If his life expectancy is 74 years, then total lost earnings alone is $1,200,000. You're already underinsured !!!!!!!!!! That doesn't take into consideration other compensable losses for his family. Maybe he has a couple of children and a wife. Then what?

Or, you're out there trucking along on your hydro with your ear plugs in & as you pass by a vehicle parked in the driveway a 4 yo darts out & somehow gets a foot under your deck.........lifetime impairment rating. You get the idea.

Besides, I don't think any of us would want to NOT have a way to fix a problem we caused. Damn good point!!!!!!

gogetter
05-05-2003, 07:40 PM
I only do residential and have $1 mill in coverage. It runs a little under $600 a year.
Well worth it in my opinion.

Gr grass n Hi tides
05-05-2003, 09:33 PM
My 1M (2M aggregate) is about $600 too.

Auroris
05-14-2003, 02:50 AM
My question is how much more do you guys insure beyond what is required by law in your area for your license, etc.? Meaning, if your licensing agency requires you to have $1M, have you insured your business above that, say to $2M?

wriken
05-14-2003, 07:19 AM
Originally posted by Auroris
My question is how much more do you guys insure beyond what is required by law in your area for your license, etc.? Meaning, if your licensing agency requires you to have $1M, have you insured your business above that, say to $2M?

I'm not required to have a license, but whis it was so, like have proof of insurance, anyways my agent said I should at least carry 1 million, he said with the sue happy folk, you letter your truck/trailer people think your rich or something.

Gr grass n Hi tides
05-14-2003, 08:56 PM
Various licensing does not attach to a set dollar figure for insurance coverage. That will be completely determined by your comfort level and what type of clients you want to land. Naturally, the more exposure (assets) you have, the more insurance you should carry. Plus, there is the moral issue of carrying enough insurance to compensate a person if an accident happens.

Separating your business from your personal assets by filing to become an LLC or an Inc., is also a good idea (according to my CPA's advice & others) - whatever suits your situation best.

The only limitations you might experience would be from potential clients, say an apartment complex or a real estate agency that could require you to carry miminum liability coverage of "X" amount of dollars. The 1M seems to be a pretty popular figure among the lawnsite members, but I've seen some guys with larger companies posting that they carry 5M and more. You might be able to get by with less, say 300K - 500K and still land some commercial jobs, but I say why take a chance? If at all possible go ahead and spend the couple of hundred extra bucks to get the 1M policy.

Auroris
05-16-2003, 05:44 PM
Wow, thanks for the input. I had never thought about how personal assets figured into my business as a sole-prop. It just goes to show another good reason to look at a larger policy.
Again, thanks!