Is Your Vehicle insured under a commercial account & is your trailer insured?

Discussion in 'Starting a Lawn Care Business' started by hummingbird3d, Mar 11, 2009.

  1. hummingbird3d

    hummingbird3d LawnSite Member
    Posts: 104

    I am wanting to start a lawn/garden service business and just got a quote. One quote was for $341, then I told the lady that I was going to use this vehicle for a small business I want to start up. She then transferred me to the business/commercial account department. Now the quote is for $442 for 6 months - HUGE difference!

    For tax purposes should I have the vehicle insured under their business section of insurance? And also, for those who have a little trailer do you have this insured separately? The agent I spoke to didn't know if the garden equipment inside would be covered - anyone in the know about this?

    Please keep in mind, it is a mini van I'm insuring and considering a small trailer, not a big truck and fully loaded enclosed trailer.
     
  2. FYS777

    FYS777 LawnSite Silver Member
    Posts: 2,305

    is this for your van only? are you going to use it for persanel use also?
     
  3. Puddle of Oil

    Puddle of Oil LawnSite Bronze Member
    Posts: 1,203

    that's it! mines 600 every 6 months.
     
  4. FYS777

    FYS777 LawnSite Silver Member
    Posts: 2,305

    call more then one agent, depends on who you talk with, some will say you dont have to change from personal, and some say you do. if your agent now dosen't know find one that does. phone calls are free. depends how your policy reads also.
     
  5. mattfromNY

    mattfromNY LawnSite Bronze Member
    Posts: 1,581

    I have to insure my trucks w/ commercial policy, and trailers on a seperate policy. Truck still covers trailers when hooked up, but if trailer is damaged or equipment is stolen off trailer when it is unhooked, truck insurance will not cover the damage or stolen equipment. Trailer has seperate policy.
     
  6. FYS777

    FYS777 LawnSite Silver Member
    Posts: 2,305

    if your just starting, depends what your deduct is on policy for equip. your equip. might not be worth the deduct,
     
  7. LB1234

    LB1234 LawnSite Gold Member
    Posts: 3,210

    Your first step should be getting an agent that can answer these types of questions.

    For us, we have two trucks registered commercially and four trailers. Everything but one trailer and comprehenise and collision coverage. One trailer has just comp since it is hardly ever used and worth less than a grand. Each trailer holds is insured up to 2500 bucks for equipment on it. However, most trailers exceed this easily by placing one piece of equipment on it. Therefore, I have inland marine coverage (i.e. equipment coverage) on any equipment that is valued over 1,000.

    Do NOT, do NOT, do NOT use your personal vehicle to haul around your equipment IF your personal insurance policy is NOT aware of it. Your first accident and they will deny your claim/coverage b/c you were using it for other than personal use.

    What I did in the past is insured the trucked commercially through my name...basically I became a sole proprietor just for the purposes of the truck. I then leased this truck to the business. There are different ways you can do this and should speak with your accountant about how that works. We have since sold the truck from me to the busines to avoid all that hassle.
     
  8. hummingbird3d

    hummingbird3d LawnSite Member
    Posts: 104

    The van will be for the business only.

    Yes, it was frustrating to me that the agent was not able to answer my question of coverage of the equipment. I know that car stereos have been covered, but it didn't make sense that the agent discussing coverage on a business vehicle couldn't answer the question.
     
  9. LB1234

    LB1234 LawnSite Gold Member
    Posts: 3,210

    let me clarify...its fine if the say "I'm not sure let me place you on hold and find out" If they just say, "not sure"...see ya!!
     
  10. hummingbird3d

    hummingbird3d LawnSite Member
    Posts: 104

    That's funny, the agent did put me on hold to find out and still said she didn't know and later in the conversation she said she wasn't sure. If insurance companies can insure the equipment then that's the coverage I want. I can't imagine going back to the van some morning and finding that my equipment has been stolen with no way to recover!:cry:
     

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