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Liability insurance

Discussion in 'Starting a Lawn Care Business' started by GElawn, Feb 16, 2007.

  1. Prestige-Lawncare

    Prestige-Lawncare LawnSite Senior Member
    Posts: 753

    I would say, that on average, the average LCO probably does carry a $1M policy. We don't want overkill on insurance, but we definitely want enough ... otherwise like said above .. you will lose everything you have.

    Another question to those on here that are looking around today ... who has had a large increase in your homeowners policy! Mine jumped 83.4% this year! Yep ... from $496. (great rate a year ago) .. to $910. a year now! I understand the $496. was a good rate (why I went with Allstate a few years ago) ... but $910. is absurd ... especially an increase of that much all at once!

    What other business can raise their rates that much all at once? Can we do that???

    Sorry sir ... but my fee for mowing your lawn this year will have an increase from $45. per cut to $86. per cut. Thank you for the opportunity to serve you .... here's your bill!

  2. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    The State of Texas requires a 300K policy for my L/O pest control and this is good for most residential accounts.

    Most commercial accounts require 1 million as a minimum many are starting to push those up to 4 million.

    Lastly, look at your company structure and assets. If you are a Sole Proprietor and you run out of insurance then next thing they go after is your personal property.
  3. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    I carry 1 million, but......... as far as homeowners, I would kill to have yours. I sold the house I lived in where I was paying $750 a year. The house I bought is worth just under double the previous house. So I was expecting to pay about double. I forgot though that a hurricane hit an underground city 3 states away, so not I am paying $2800 a year.
  4. Prestige-Lawncare

    Prestige-Lawncare LawnSite Senior Member
    Posts: 753

    Dang (nice word for a cuss word) ... $2800. a year! I just called my brother who lives 5 miles from me ... has a house of about the same price range (maybe a tad less then mine) ... and the same insurance company and agent ... and his went up, but not near as much as mine did.
  5. jeffscap

    jeffscap LawnSite Member
    Posts: 155

    Go with the 1M,the price difference isn't much and it is well worth the money.
    I don't know what part of MICH you are in, but around South Lyon,Ann Arbor,
    most new housing subdivisions the houses start @ 1M . It wouldn't take long to add up. If you do commercial it has to be higher on some accounts.
  6. echeandia

    echeandia LawnSite Bronze Member
    Posts: 1,131

    My $1 Million coverage is just $640 per year.
  7. sildoc

    sildoc LawnSite Silver Member
    Posts: 2,925

    Sounds as if you don't have insurance you don't even have this job.
    I have a 2 mil policy because of one commercial account. I would go with a 1 mil policy. My 2 mil policy costs me 463 a year with a 4 mil ag.
  8. cpel2004

    cpel2004 LawnSite Bronze Member
    Posts: 1,416

    Good topic, does any of you guys have work's comp for your employee's. Is it financed through a payroll company and what are the cost. I know I need it but it is so expensive its based upon your overall payroll.
  9. wnccutter

    wnccutter LawnSite Member
    Posts: 122

    ...go with 1mil...I have governmental and commercial accounts and that covers it all...

    Get workers comp as well...there is a basic entry level amount that is fairly cheap...

    Not having this coverage will hold you back and COST you money in the long run...remember...you have to spend money to make money...some expenses are a better value than others and IMO insurance is "good" value...
  10. Wells

    Wells LawnSite Member
    from SLC UT
    Posts: 0

    Wish I had your rate, I pay right around $800 per year for 1 Mil.

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