How much insurance??????

Discussion in 'Starting a Lawn Care Business' started by Theroadrage, Apr 30, 2003.

  1. gogetter

    gogetter Banned
    Posts: 3,256

    I only do residential and have $1 mill in coverage. It runs a little under $600 a year.
    Well worth it in my opinion.
     
  2. Gr grass n Hi tides

    Gr grass n Hi tides LawnSite Bronze Member
    Posts: 1,020

    My 1M (2M aggregate) is about $600 too.
     
  3. Auroris

    Auroris LawnSite Member
    Posts: 155

    My question is how much more do you guys insure beyond what is required by law in your area for your license, etc.? Meaning, if your licensing agency requires you to have $1M, have you insured your business above that, say to $2M?
     
  4. wriken

    wriken LawnSite Silver Member
    Posts: 2,154

    I'm not required to have a license, but whis it was so, like have proof of insurance, anyways my agent said I should at least carry 1 million, he said with the sue happy folk, you letter your truck/trailer people think your rich or something.
     
  5. Gr grass n Hi tides

    Gr grass n Hi tides LawnSite Bronze Member
    Posts: 1,020

    Various licensing does not attach to a set dollar figure for insurance coverage. That will be completely determined by your comfort level and what type of clients you want to land. Naturally, the more exposure (assets) you have, the more insurance you should carry. Plus, there is the moral issue of carrying enough insurance to compensate a person if an accident happens.

    Separating your business from your personal assets by filing to become an LLC or an Inc., is also a good idea (according to my CPA's advice & others) - whatever suits your situation best.

    The only limitations you might experience would be from potential clients, say an apartment complex or a real estate agency that could require you to carry miminum liability coverage of "X" amount of dollars. The 1M seems to be a pretty popular figure among the lawnsite members, but I've seen some guys with larger companies posting that they carry 5M and more. You might be able to get by with less, say 300K - 500K and still land some commercial jobs, but I say why take a chance? If at all possible go ahead and spend the couple of hundred extra bucks to get the 1M policy.
     
  6. Auroris

    Auroris LawnSite Member
    Posts: 155

    Wow, thanks for the input. I had never thought about how personal assets figured into my business as a sole-prop. It just goes to show another good reason to look at a larger policy.
    Again, thanks!
     

Share This Page