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Insurance- Commercial General Liability

Discussion in 'Starting a Lawn Care Business' started by RhettMan, Mar 31, 2008.

  1. RhettMan

    RhettMan LawnSite Silver Member
    from Texas
    Posts: 2,156

    I have been insurance shopping and have come to one conclusion, the agents know im a greenhorn. I recieved a quote for a $577 annual premium for 9 month coverage on 100k. Let me know, i think this is high compared to what my book quotes, "you can expect to pay $300 to $800 a YEAR for $500,000 to $1 million worth of coverage."

    I told them

    $10k-$15k expected season sales (im a full time college student)
    5000 grand worth of equipment
    Just me working

    What do you fellas think?
  2. hackitdown

    hackitdown LawnSite Silver Member
    Posts: 2,505

    I think if you asked them for $1 Mil for 12 months it may not be much more money. I pay about $800 for 1 mil per incident, 2 mil total and $25K in equipment.

    You may find that you need the 1 Mil to bid on certain work.
  3. DA Quality Lawn & YS

    DA Quality Lawn & YS LawnSite Fanatic
    Posts: 8,896

    rhett....keep shopping at other agents. Depending on the nature of your operations, you should be able to get $1mil GL for mow/blow for 300-500 dollars. A little less money if you go with $500K limit of liability.

    If you have $5,000 worth of equipment, think to yourself "Can I afford to self insure this amount if I were to lose ALL of my equipment in a loss?" If not, cover it. If you can self insure, don't waste money on coverage. $5,000 is not that much in equipment to pay big dollars covering on a policy.
  4. DynaMow

    DynaMow LawnSite Senior Member
    Posts: 570

    just got a quote for 1M @ $303 a year
  5. ALC-GregH

    ALC-GregH LawnSite Fanatic
    from PA
    Posts: 7,053

    I'm still waiting on a quote. The agent did say it would be anywhere from $500-1000 with pesticide coverage. I might have to reconsider pesticides for now and sub it out if I have to until I can get things going. Still up in the air.
  6. Shilohlandscaping

    Shilohlandscaping LawnSite Member
    from Norcal
    Posts: 30

    I think I need to look for some better quotes.. looking around at prices and my local agent quoted me $1745 for $300,000.00.. lowest they had. 1m in liability for mowing business was over 2k.
  7. ALC-GregH

    ALC-GregH LawnSite Fanatic
    from PA
    Posts: 7,053

    my quote, when I get it is for 1/2 mill
  8. Buddy Buds

    Buddy Buds LawnSite Member
    Posts: 146

    I got 800+-for $2000000. Also $15000 inland marine policy on my equipment.
  9. ALC-GregH

    ALC-GregH LawnSite Fanatic
    from PA
    Posts: 7,053

    I just got off the phone with the agent. My policy is $561 a year with 2,000,000 liability and the kicker, it also includes 15k for inland marine on any owned equipment and 25k on leased rented. He also told me that if I add my home (already have 2 vehicles with them) to the policy that I could get a discount rate and would be eligible for a umbrella policy for very little more. With that added, it would decrease the risk of losing everything by boosting the coverage to more then 2mill on my auto policy if I were to get sued for some reason due to a accident that was my fault.
  10. TNT LawnCare Inc.

    TNT LawnCare Inc. LawnSite Bronze Member
    Posts: 1,157

    We renewed today for $459.00 a year, 3 million for General Liabilty and 1 million Personal Liability.

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