Insurance - Financial Responsibility

Discussion in 'Pesticide & Herbicide Application' started by scfalconry, Sep 20, 2006.

  1. scfalconry

    scfalconry LawnSite Member
    Posts: 22

    I took the S.C. pesticide exams for turf and ornamentals last week. It will be 3 more weeks before I get the official results.. but I know I passed w/ flying colors. In the mean time I need to find an insurer. Per the regulations in S.C.... I have to submit proof of coverage for $50,000 and $100,000 agregate to maintain my license.

    I did an online quote request today... when these insurers start calling what should I ask them.. what kind of pricing is the norm. This will be my first time having insurance on anyting other than my car or home.

    Thanks,
    SCFalconry.
     
  2. olive123

    olive123 LawnSite Senior Member
    Posts: 500

    keep in mind that some hoa's require much more coverage than that, most here in FLA want 1 million.
     
  3. turf hokie

    turf hokie LawnSite Silver Member
    Posts: 2,744

    I wish I only needed 50/100 coverage. Most HOA/Commercial places will want at least 1million /2 million. State mandate here is 500k (I think) I just know mine exceeds all minimums

    But prices are not as astronomical as you think.
     
  4. scfalconry

    scfalconry LawnSite Member
    Posts: 22

    Olive,

    Thanks for the reply. I haven't worked with any HOA's yet. I'm a solo operator... just wanting to be legit. taxes, license, insurance etc.. I guess I should have gave some indication as to the size of my business in my previous post. I'm a one man show... Old Ford truck with a 14 ft tandem trailer. M54 Cub Cadet tank z-mower, a 21" push mower, line trimmer and a blower. About 40 customers (some quite large spreads in rural areas... the rest are your typical subdivision lots. 7-15M)

    Thanks again,
    SCFalconry
     
  5. MStine315

    MStine315 LawnSite Senior Member
    Posts: 789

    They base it on your gross receipts, and sometimes do an audit. i.e. don't be a 5 truck operation doing $15,000 in gross receipts/year! Anyway, I have $1,000,000/$2,000,000 and pay around $2,000 per year, but that's for a 2 truck operation with only 1 day of mowing, the rest spraying, and snow removal as well which adds to the cost more than anything. p.s. you may want to make sure it's not $500,000/$1,000,000 as I think the State of Michigan is. Marc
     
  6. scfalconry

    scfalconry LawnSite Member
    Posts: 22

    Argghh $2K/yr would be way over my budget. <smile> Guess pricing is going to largely depend on my gross like you said. All I wanted to do is legally use roundup in flower beds and driveways.... now I'm taking exams and looking for insurance and considering a spray rig to make more money to help justify things.

    Thanks,
    SCFalconry

    BTW..I've pasted a section of the SC pesticide Regs and the link below. www.scstatehouse.net/coderegs/c027.htm


    ((Turf and Ornamental is Category 3))

    (1) Category 3, 5, and 8 applicators must maintain financial responsibility in the amount of $50,000 with an annual aggregate claims limit of not less than $100,000.00 before performing any pest control activities, including advertising, as specified in Section 27-1085 L, below.
     
  7. A.T.A.K

    A.T.A.K LawnSite Senior Member
    Posts: 286

    Depends on the state you can get qutes as low as $700.00 per year. I was a consultant for many big carriers as Loss Control. It is true most HOA's will require $1,000,000.00 but as to getting started go with the min amount required by your state and up the amounts as needed. If you need more info send me a PM and I will try to help you find a carrier for you at the cheapest cost. Some will disagree with this but with a limited amount of start up $ this will be the easest way to easy start up pains.
     
  8. MStine315

    MStine315 LawnSite Senior Member
    Posts: 789

    By all means, don't go above and beyond what the State requires, especially as a start up company. I was giving an example and certainly wouldn't expect your costs to be more than 500-700 per year. Sorry! Didn't mean to scare you. I do applaud you for being on the up and up, though. Good Luck, Marc
     
  9. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Posts: 3,465

    The DEC in NY wants a minimum of 2million.
     
  10. scfalconry

    scfalconry LawnSite Member
    Posts: 22

    MSTINE & ATAK...
    Thanks to both of you.

    $500 sounds alot better.... :) Heck I spent $100 just to take the exam... and another $50 for the study material. I assume I'll know more soon about the in and outs of the insurance game. I put an online request with a service that is going to have several insurers contact me. I may be lucky to get one insurer willing to write a policy for me... but providing the possibilty that I have several willing insurers... What would be a deciding factor for you other than premium cost? Is there anything in specific that you take in to consideration when shoping for insurance for your business?

    Tnx,
    SCFalconry
     

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