Insurance?

Discussion in 'Starting a Lawn Care Business' started by recycledsole, Aug 18, 2012.

  1. recycledsole

    recycledsole LawnSite Gold Member
    from MD
    Posts: 3,231

    Hello,
    i am starting wondering how did you all find your liability insurance?
    is it from big companies like nationwide, etc...?
    or is it from small local companies? how do i find these comapnies?
    from what i understand multimillion $ coverage is aroung $500/ yr.

    do you need anything else aside from this?

    thanks very much
     
  2. blakescape

    blakescape LawnSite Member
    Posts: 108

    I just searched online and requested quotes from several insurance companies. I ended up signing with a local nationwide agent. They have surprisingly low rates but they are slow in processing paperwork.

    General liability with at least a million in coverage is important to have. Since general liability only applies to claims against your company, you will also need inland marine insurance for your equipment. And don't get just any inland marine insurance, make sure it is comprehensive, covers all causes of loss, and gives full replacement value. Keep good records of all your equipment; pictures, receipts, and check stubs/copies/carbon copies. If you dont have good records, and you do file a claim, the insurance company WILL find a reason to not pay you.
     
  3. recycledsole

    recycledsole LawnSite Gold Member
    from MD
    Posts: 3,231

    thanks for your response
    what about bonding and licensing?
     
  4. vanncann

    vanncann LawnSite Senior Member
    Posts: 456

    That info will be used!!!
     
  5. recycledsole

    recycledsole LawnSite Gold Member
    from MD
    Posts: 3,231

    what does it mean that you are licensened?
     
  6. blakescape

    blakescape LawnSite Member
    Posts: 108

    The only bonds I know of that are required for this industry are when bidding on state or county contracts. They local county will require a surety or performance bond for work such as a 5 year grass cutting contract. A bond is just a guarantee that work will be performed under agreed upon conditions, and its only something I would do when required.

    As for licensing, you need to obtain a business license from the county you live in. Those are easy to apply for and obtain. You will pay a yearly county tax for the license but it isnt much.
    If you have the time and money, you can go one step further and get a contractors license from the state. Those are harder to get but good to have since it holds you to a higher standard.
     
  7. blakescape

    blakescape LawnSite Member
    Posts: 108


    Licensed means that you are regulated by the county or agency that gave you the license and that you can be held accountable for any negative actions. A license and certificate of insurance shows the client that you are a legitimate company and not some fly by night grasscutter that doesn't pay taxes.
    If you haven't made your company official yet, I would recommend using legalzoom.com to file all the paperwork for you and form an LLC. Once you receive all your legalzoom paperwork, you can go to the bank to set up a company checking account and go to your county to file for a business license and then go get insurance.
     
  8. recycledsole

    recycledsole LawnSite Gold Member
    from MD
    Posts: 3,231

    AH ok, so i am a licesned 'llc' and i have insurance?
     
  9. GreenI.A.

    GreenI.A. LawnSite Silver Member
    Posts: 2,132

    Are you asking us if you are a LLC and if you have insurance?

    What I did when I got insurance, and then again when I changed my insurance, was I contacted multiple insurance agents and had them each quote me for multiple companies. I told them what I was looking for for coverage, so it kept the policies they all quoted pretty comparable to each other. What I found was a great difference in the policy costs from one carrier to another for relatively the same policy. I also found that two different agents will also quote very different prices for the same policy from the same carrier as well. So it is definitely best to get as many quotes as you can. What I used for my final decision on the choice was not only the cost of the policy but I took great consideration of the service the different agencies gave me as well.
     

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