Liability insurance

[GElawn]

I am starting this spring and have 1 large account, they requested that I have liability insurance. How much should I carry?

I have contacted my local insurance co. , they gave me some choices of 100,000 300,000 500,000 100,000,000 the difference in price from the lowest to the highest amount is about 250. Do I need this insurance for just one account?

This insurance really cuts into my profit margin, and I am not sure if I want to take on another account, with being I am just starting out in this biz.

[echeandia]

Originally Posted by GElawn

...This insurance really cuts into my profit margin...

Not having insurance and having an accident will really cut into your profit margin. I carry $1MM.

[Wells]

Originally Posted by echeandia

Not having insurance and having an accident will really cut into your profit margin.

Agree 100%.
We also carry 1 mil. but only because several of our commercial clients require that amount of coverage. If you were doing strickly residential properties you would probably be fine with 300,000 to 500,00.

[Robert S]

what would that cost per month/? 300,000 worth?

[godzilla]

I'm covered to 2 mil and only do residential work. It's money that I am glad to spend. Mostly for the protection of my clients, but for my own protection as well.

[Wells]

The price is going to vary from insurance company to insurance company but for $300,000 your probably looking around $600 or less per year or $50 per month. Well worth the expence.

[lawnpro724]

Wells for that price or a little more you could get a million dollar policy so why would you want $300,000?

[trinitylandscape]

You definitely need insurance, it makes you look more professional and helps clients feel your prices are justified. Rates will vary from company to company just like auto insurance. It will also vary between LCO because General Liability is based on your payroll. This is my first year getting into the maintenance side of landscaping so I quoted my payroll on the lower side. I am with Montgomery Insurance, the business insurance division of Liberty Mutual. My annual rate for $1MM is $601/year or $50/ month. The most expensive part of insurance is having it, as you raise the limits it increases slightly, better to have a little extra than not enough!

[Wells]

Originally Posted by lawnpro724

Wells for that price or a little more you could get a million dollar policy so why would you want $300,000?

I realize that there isn't a whole lot of difference in price ($200 per year +/-)between 1 mil dollar policy and a 300,000 dollar policy but for straight residential work a 1 mil policy is really overkill.

Everyone needs to determine what amount of risk their willing to accept. So lets take worst case senerio and say you killed someone while mowing, even a 1 mil dollar policy isn't going to cover that lawsuit. Thats where you better have your business structured in a way that the family can only come after your insurance liability, then the assets of the business but not your personal assets.

[Cut n Edge Lawncare]

get the million, if you screw up really bad, and there is always that chance, do you want to lose everything you have worked for? I have a million on my truck, a million business liability, and 10,000 on my equipment and it costs about $1700 a year. Dont take any chances there are alot of blood sucking lawyers out there just looking to sue you and make some $$$$