And now.....the not so fun part of the business

Discussion in 'Lawn Mowing' started by CustomKare, Apr 3, 2007.

  1. CustomKare

    CustomKare LawnSite Member
    Posts: 212

    What's everyone payin' for liabillty insurance?

    When did you decide to hire help and find it profitable?

    How bout workmans comp?

    Finally, how much insurance do you have when you step onto a commercial property?

    How the hell do you make any money in this business when you do it by the book????

    I'll sit down now and wait for your response!

    Sorry for all the questions.
     
  2. TNT Lawncare

    TNT Lawncare LawnSite Senior Member
    Posts: 263

    I pay about $45 per month for $2,000,000 worth of ins. I don't have workers comp because I don't have anyone on a payroll. Actually, a buddy of mine who has his own LCO works with me and I work with him. Not everything is always done by the book. Do you always drive the speed limit?
     
  3. Liquidfast

    Liquidfast LawnSite Senior Member
    from Ontario
    Posts: 739


    If you are legit and take on commercial properties....I promise you now, you will have to do it all by the book. I'd wager for anyone to say otherwise.
     
  4. Scag48

    Scag48 LawnSite Fanatic
    Posts: 6,068

    I'm paying $30 a month for $1 million in general liability. For commercial properties, most will only require $1 million, but my dad did some work for Safeway once and they require $2 million. Trying to decide when to hire an employee can be a complex decision or a very simple one. Analysis of how much more work you can physically get done in one day against the cost for the employee needs to be considered. Obviously, hiring an employee really allows you to get more work done so you can expand your capabilities. It wouldn't make any sense to hire an employee for 3 days of the week so you can sit the rest of the week. You need to be growing to the point where you need the extra hand to take on more work.
     
  5. 4curbappeal

    4curbappeal LawnSite Senior Member
    Posts: 761

    Scag 48 has an excellent point!
     
  6. supercuts

    supercuts LawnSite Silver Member
    Posts: 2,784

    i think im around $1500/year for 2 mil/ 25K in equip theft and more.

    as far as hiring somebody, if your working an 8 hr day and dont have any other work, clearly you dont need anyone. if you phone rings off the hook and you cant keep up and turn work away clearly you do. im guessing since your asking your most likely in the middle so its your call. if you can find some 18y/o who is willing to work cheap, you save a tremendous amout of time having 1 extra guy trimming. then you can do a few extra lawns a day, more than paying for the help and you have a 2nd hand which is extremely helpful on some jobs. as time goes on perhaps you can by another mower and hire a 2nd guy to cut. dont know how big you are and how much equip you have so its hard to say.

    workmans comp is about 15% of their pay. for every $100 you give them, you give workmans comp $15.

    the more insurance the better. some larger companies require more. i stay clear of plowing banks and similar businesses because you get sued if people slip and fall. they are high traffic areas and i dont want the insurance headache. its much more unlikely you will have the get rich quick homeowner who will sue you when they fall on ice at their house.

    you can make money on the books but that is why guys on here complain about lowballers. it drives reasonable prices down to the bare minimum. now you see why people charge as much as they do, they are in this to make a profit.
     
  7. topsites

    topsites LawnSite Fanatic
    Posts: 21,654

    1. I don't remember.

    2. I run solo.

    3. Doesn't apply in my case, I don't carry wc.

    4. Don't have commercial accounts, all residential.

    5. You don't.
     
  8. MOW PRO LAWN SERVICE

    MOW PRO LAWN SERVICE LawnSite Bronze Member
    Posts: 1,566

    I have 300,000 in general the cheapest plan to keep cost down.
     

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