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business without insurance

Discussion in 'Business Operations' started by E-man, Aug 1, 2002.

  1. E-man

    E-man LawnSite Member
    from PA
    Posts: 136

    My wife was at our insurance agents office last week going over our new comp. ins.(old one went under) anyway he brought up the subject of lawn and landscape companys in our county , the insurance companys share contractor lists for various reasons . On the list of landscapers /lawncare operators there were only ten (count them ) ten companys carrying liability insurance . He could not show her the list but We know we are one and we probably know who the other nine are. Now there are probably over 150 guys running around here and only 10 have ins.
    The insurance agent took the words right out of her mouth ... THATS SCARY

  2. wolfpacklawn

    wolfpacklawn LawnSite Member
    Posts: 120

    I hate big government but I wish that they would require proof of insurance when you get a biz liscense. Far too many in this biz don't do things the right way and they try and cheat the system. I wish that I didn't have to may all these insurance premiums but that is just part of being a ligitamate business.
  3. hosejockey2002

    hosejockey2002 LawnSite Bronze Member
    Posts: 1,195

    I'm not sure about lawn maintenance but in my state (Washington) to become a licensed landscape contractor you must have a minimum $6,000 bond and $300K liability insurance.
  4. Mykster

    Mykster LawnSite Senior Member
    Posts: 668

    That depends if you're a Specialty or General Contractor. Specialty contractor only requires a min. of 6k. A General Contractor is required to have a min. of 12k.
  5. site

    site LawnSite Member
    Posts: 168

    It's amazing that people would take such big risks by themselves. I'm sure it looks like a way to increase profits in the short term, but an accident would probably put most of these guys out of business. It would probobly also bankrupt them since most are probobly sole prop.s with no separation between themselves and their businesses.
  6. Hawkeye5

    Hawkeye5 LawnSite Senior Member
    Posts: 295

    It would be interesting to see how many uninsured LCO's also do not have a business license. I'm guessing there is a large per-centage, and that ignorance is the cause for many. The rest may feel that there is little risk. This is a problem for small contracting in general, not just LCO. There are many small residental painting and carpentry contractors that have no insurance. Keep in mind, one of the first rules of business: "Protect your assets". JD
  7. 65hoss

    65hoss LawnSite Fanatic
    Posts: 6,360

    How do you know those other people don't have insurance with someone out of state. For example, I carry a $1Mil policy thru Penn National.
  8. E-man

    E-man LawnSite Member
    from PA
    Posts: 136

    65 Hoss I also use Penn National, but I go through what you would call a secondary company they set me up with a policy Im comfortable with, I buy it aand they get a commission. At least in my area most people have to use a secondary company. Most people don't go to the primary insurer, they tend not to like dealing with the little guy. They would rather let the secondary company deal with you.Therfore these secondary companies have access to all major general liability insurance companies. The list may miss a few companies, but it is not likely that it would miss 140 companies. This agent also told her he had a list of general contractors in our county that was almost 20 pages long: I'm also sure that they all didn't have local companies.

    I'm not trying to be rude, just stating what I know.
  9. 65hoss

    65hoss LawnSite Fanatic
    Posts: 6,360

    That's cool. You must be talking about private insurance agencies that sell several products. That is how most is around here.

    I don't disagree about many not having insurance. I know from talking to many people that they don't have any G/L insurance. I personally couldn't sleep at night if I didn't have mine.
  10. John Allin

    John Allin LawnSite Bronze Member
    Posts: 1,489

    Penn National is a great company. We were with them for years, and just now had to go elsewhere because they couldn't grow with us.....

    Only bad thing is that they are not an "A" rated company thru AM Best. And, they are cracking down big time on landscape companies..... be prepared.

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