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Bank of America/LaSalle Bank

Discussion in 'Lawn Mowing' started by Michdeere, Mar 20, 2008.

  1. Michdeere

    Michdeere LawnSite Member
    Posts: 90

    Anybody here have lawn/landscape contracts with Bank of America? They recently acquired LaSalle Bank. I have a year left on the contract LaSalle and I negotiated for the five branches I service. Bank of America is requesting (actually demanding) that my liability insurance limits are $2 mil. aggregate w/ a $5 mil. umbrella! I already carry the $2 million but the $5 million umbrella is going to cost another $2500-$2800. I'm not sure a $12k year account is worth it. It doesn't seem like they should be able to "change the rules in the middle of the game". We (LaSalle and I) have/had a contract. Anyone else in this situation with them? Thanks.
  2. JimmyStew

    JimmyStew LawnSite Senior Member
    Posts: 367

    I was approached by another bank, a regional, last fall about submitting a bid on a branch in my service area. I respectfully declined due to the excessive ins/bonding requirements they had. By my quick estimate, the increase in insurance premiums would be more than double what I would have charged for their postage stamp sized job. Their requirements were not quite as bad as yours, but close. When I explained to him that the requirements seemed high and that none of my other commercial or municipal customers required anything close to that, he seemed very dis-interested. Must be nice to be big and mighty!
  3. pderenzo

    pderenzo LawnSite Member
    Posts: 8

    It is a fact that the additionial expense increase was above what you were expecting. It would seem that they wanted something for nothing. I would have agreed to provide the insurance provided they would agree to the increase in your rates. Giving them an option to provide the insure through their affiliates or you providing it through your agent. You didn't have anything to loss, it seems you were going to lose the contract anyway without the insurance. And if you had a physical contract without a break clause it would be binding and they would have to honor it until renewal time.

    Blessing to you all.
  4. nickslawn

    nickslawn LawnSite Member
    Posts: 83

    if you have to aggree with there insurance, then make them aggree to your new mowing rate the extra cost of insurance just for them. I would have a lawyer look at the situation, even though they bought out that bank I believe the orginal contract would still be enforced and the terms the same. Or you might be able to get the to settle on a breach of contract on there part and try to collect money from them for cancallation.
  5. CreativeEdge

    CreativeEdge LawnSite Member
    Posts: 65

    I know US Maintenance is over the BoA, atleast here in GA. I just turned down 8 branches b/c what they paid was not worth my time to go out there. I also couldnt justify paying for worker comp when I am the only employee. I would have been in the hole from the start...its not worth it, unless they are paying you something worth a crap.

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