Insurance Cost?

Discussion in 'Business Operations' started by oldturf, Mar 20, 2006.

  1. oldturf

    oldturf LawnSite Member
    Posts: 221

    My insurance cost keep going up, this year thru farmers my rate is $4,700.00 for $1,000,000 liability with $2,000,000 aggregate and loss insurance on two trucks and trailers, and $38,000.00 additional equipment. This includes full coverage on both trucks, all commercial insurance. Plus my workman's comp THRU THE STATE FUND is a flat $840.00 and may go higher.
    How does this compare with your cost and who do you use.
  2. Randy Scott

    Randy Scott LawnSite Bronze Member
    Posts: 1,915

    This question is relative to people with identical business structure. Pretty open question for the forum. Example, our workers comp is $6700 for the year!

    I'm pretty certain that yearly costs will never go down. Of course insurance is higher, just like fuel, mower prices, fertilizer, grass seed, it's called inflation.

    In regards to insurance, raising your deductibles can lower your insurance. EFT payments can save on monthly processing fees as opposed to mailing payments in. Safety programs for the company can reduce costs if approved by your provider. There are ways to reduce cash outlay. Although you give a little to get a little, and it's small amounts. It's something though, and every penny counts.

    TJLANDS LawnSite Bronze Member
    Posts: 1,669

    That is a tough answer since everybody pays different prices in different parts of the country. If you are talking auto I pay basically 1900 per truck for 9 trucks thru Selective with 500 ded. W/C is a joke:hammerhead: In fact now that you brought it up I hate insurance in NJ, I hate insurance period.. haven't had a claim for auto in 18+ years and have never paid out in liability claims, been to court for snow three times but have not lost and pay more each year..enough said. now I need a drink:drinkup:
  4. echovalley

    echovalley LawnSite Member
    from CT
    Posts: 91

    I wouldn't complain those prices really aren't that out of control.We pay way more then that.
  5. cantoo

    cantoo LawnSite Silver Member
    Posts: 2,910

    Your insurance rate total is likely double ours with a truck, cube van and pesticide insurance. Ours is $2 mil liability. Our deductible is pretty high and we have never had a claim. My trailers aren't licenced for commercial and we have no yearly fee here for them. We need $2 mil liability for our town work and it's all fenced gated areas that are closed while we cut. It makes no difference.
  6. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    It really depends on your operation as well... It appears yours is a multi-faceted organization whereas mine is a solo op, but:

    My truck runs around 300 / year for minimum liability and the condition of no letters of any kind on the truck or trailer (I keep trying to tell you guys that it costs a LOT of money to letter the truck but then with certain insco's it doesn't matter, but with mine it does). Far as general business liability, that runs me 400 / year for the usual million, and I'm not required to have workmen's comp.
    Some things that help: Perfect driving record w/ a self-imposed (but state certified) defensive driving course I take every 2-5 years.

    You might consider putting all your drivers through a defensive driving course. It costs some money upfront but it pays off in more ways than just lower rates because whenever I take the course, I still always learn something, yes, every time. And I find I'm a better driver afterwards. Also, require all your drivers to provide a copy of their DMV record to you (you may wish to refund them the cost of it), and do this about once / year because what you don't know can hurt you. I would say no more than ONE violation in 5 years, and nothing serious (speeding or running a stop sign ok, but no red lights or reckless driving, obviously no DUI's).

    Yeah because for all you know, perhaps the reason your rates went up is one or more of your drivers got a few tickets last year (even if on their own time) and the Insco's check this but they don't have to tell you (and most of their reps haven't a clue if you ask).
  7. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Posts: 4,771

    That sounds a little high for the midwest. I have the same libility coverage as you, but just have coalition insurance on 2 trucks, trailer and about $30K of equipment for around $2040 a year. When I got the insurance I was part-time and still was until about 2 weeks ago. If you are interested, you can call Penny Bartlett with M&M Insurance in Wichita, KS at 316-264-9317. The actual insurance is Continiental Western out of Nebraska. Oh yea....that also includes my needed pesticide insurance as well.

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