Do i have to have a business license for insurance ?

Discussion in 'Starting a Lawn Care Business' started by THEoneandonlyLawnRanger, Mar 6, 2007.

  1. THEoneandonlyLawnRanger

    THEoneandonlyLawnRanger LawnSite Senior Member
    Posts: 291

    OK, this may be a stupid question but its a question i need help with. Do you have to have a business license to get liablility insurance and insurance on equipment? I am wanting to go more legit and cover my butt with insurance but am not sure of the process. Any help or advice would be great.
  2. TSG

    TSG LawnSite Senior Member
    Posts: 444

    NO,,,you can get liability insurance with a phone call
  3. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    A business license covers the legal aspects of your operation, while insurance covers the liability portion, the two entities are maintained one by the US government and the other by a business in the private sector and are mostly independent of each other for their part in the deal.

    The Government does require, if you have over a certain number of employees, that you provide Workmen's Compensation, but beyond this it's a matter that if you wish to become legit, then both are required for that reason.

    But no, you don't need a license to get insurance, nor do you usually need insurance to get a license (exception of Workmen's comp), you can get the insurance first and later the license or vice versa, I don't think it makes much of a difference.
  4. Thib

    Thib LawnSite Member
    Posts: 7

    No you don't need a business license to get insurance but if you are wanting to be more legit than you should get a business license. If you get caught without you could get a fine and depending on where you are it could be a big fine.
  5. TSG

    TSG LawnSite Senior Member
    Posts: 444

    In NH you used to be able to have up to 3 employess before you had to have workmans Comp. Now it is 1.
    However the owners and officers of the buisness can elect out .
  6. lawnpro724

    lawnpro724 LawnSite Silver Member
    Posts: 2,201

    as a sole prop. you can use your social security # for taxes and insurance. Your insurance company will want your FEIN for a commercial policy but you can get by with social #. If you don't like giving out your social security # to every business owner you work for go to and get you FEIN
  7. THEoneandonlyLawnRanger

    THEoneandonlyLawnRanger LawnSite Senior Member
    Posts: 291

    Thanks a ton guys! Now for stupid question Number 2 for today.....Is there a insurance company that deals with just lawn care or would i get insured from somewhere like State Farm ? Just wondering where i might find the best rates from ?
  8. J&R Landscaping

    J&R Landscaping LawnSite Fanatic
    Posts: 5,095

    Shop around and compare. You might try erie insurance, I have heard their name brought up many times.
  9. lawnpro724

    lawnpro724 LawnSite Silver Member
    Posts: 2,201

    State Farm does not offer insurance for lawn & landscaping businesses and they wont do small commercial either. I have State Farm for just about everything and wanted to go with them for my business but they told me they don't offer it. I had to go with another insurer for my commercial policy.
  10. ATVracer

    ATVracer LawnSite Senior Member
    from Indiana
    Posts: 346

    I would recommend Erie. I am with them now because they cover pesticide applications. Formerly Farm Bureau. Both policies were less than $375 with 1 million liability for the business.

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