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Insurance vs Self-Insurance

Discussion in 'General Industry Discussions' started by posterlion, Feb 9, 2010.

  1. MarcSmith

    MarcSmith LawnSite Fanatic
    Posts: 7,157

    there are others on this site who have called employees "subs" and got caught buy the feds. all it takes is one employ to NOT file any returns and then he gets an audit and the employ throws you under the bus and you are done...And the irs won't care if you file for bankruptcy and open up another a new name...

    no such thing as a dumb question... better to ask an learn up front..
  2. yamadooski

    yamadooski LawnSite Senior Member
    Posts: 434

    We used to carry 1 million. We now carry 3 million.
    11 years ago I was mowing on the side of a house and the next house was only 8' away and they put in concrete curbing my left tire hit it a jarred the mower to the right causing me to hit and break the natural gas line to the outside meter.
    Of course it broke below the shut of valve and gas was blowing out at rate of of I dont know how fast but it made this awful noise.
    6 firetrucks, 3 ambulance, 12 cops. and evacuated 20 houses up and down and accross the street.
    Plus there was a storm coming and with a lot of lightning. The firemen were freaking out. It took the gas company 3 hours to get out there to find the main shut off line by the street.
    Could you imagine if it was hit by lightning and a few houses blew. Each house at that time were in the range of 300k each. Do the fuzzy math and you can see I didnt have enough insurance at the time.
  3. BearWise Landscapers

    BearWise Landscapers LawnSite Senior Member
    Posts: 456


    This is a great claims example. I believe that when purchasing insurance or even when considering going with a self-insurance program, you should always first consider your exposure to loss. With bodily injury, gas lines, and other types of damage, the exposure to loss can be very high and your insurance limits and types of insurance need to take this into account. Thanks for sharing.
  4. wdcs

    wdcs LawnSite Member
    Posts: 7

    Was reading today don't remember if it was state of utah or federal but any way one of the requires a minimum of 11 million net income not gross net per year to even apply for the option to be self insured. Myself I didn't quit make that this year maybe next year ha ha

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