need help on first commercial account

Discussion in 'Lawn Mowing' started by cfosceola, Nov 15, 2002.

  1. cfosceola

    cfosceola LawnSite Member
    Posts: 32

    I just picked up my first commercial account last night, it actually my sons day care. I have 25 residentials that I have been doing but my question is. Is there any different type of insurance that you have to carry for doing commercial propertys?
    Also off the topic, I am having surgery in 3 weeks to fix a hernited disk in my neck, they will be fusing 2 levels so I will be out about 3 weeks, I have my propertys covered, do i tell my clients and introduce the person doing it for me or just proceed like i am doing it and bill normally and pay the guy that is doing it for me.
     
  2. rkbrown

    rkbrown LawnSite Senior Member
    Posts: 533

    cfosceola:

    If you are solo and your clients are used to seeing only you week in and week out, they might possibly be a bit alarmed if someone else is doing your job. If this is the case then I would talk to the client and introduce him. I would also assure your clients that this is a temporary situation and that you will be back in action in 3-4 weeks. If you feel that your clients wouldn't bat an eye at it, then I would procede as normal.
     
  3. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    The liability insurance you get will cover you when you are working ..... ask them if they want proof of insurance n call your agent with the other peoples fax # & mailing address

    Contact your customer base ..... at first I thought no reason but I'd have to agree with rkbrown ....I suspect you'll have (as we all do) those customers which like to come out n chat .... so they should be given the heads up .... n why not it creates a very friendly bond that your customers will know what's up n ask how your doing later down the road n these things create good communication times to build trust

    Hope all goes well
     
  4. Mykster

    Mykster LawnSite Senior Member
    Posts: 668

    Some solo Lco's that only do residential might only have a min. of like 600k for Lia.

    When dealing with commercial they usually require a min. of 1million in Lia. coverage, and possibly 1mil coverage on your truck. It differs on the vehicle.


    What kind of coverage do you have now with 25 residentials accts.?
     
  5. lawnkid

    lawnkid LawnSite Senior Member
    Posts: 935

    I don't think you need any kind of extra insurance for commercial properties. I would also introduce the person who will be doing your work for you when you are gone because some people might say, oh, well, who are you and it'll be a big mess I'm sure. Is this guy another lco or does he wwork for you and will use your equipment and truck.
     
  6. Jimbo

    Jimbo LawnSite Bronze Member
    Posts: 1,093

    I do a few daycares myself, and I carry the normal 1 million policy.

    As for the cutting I dont think it is necessary to tell all customers every time you hire a new employee...I know this is not the case but an equivilent example. However, since your son goes there they know you well so in this case they might think its odd that you are not cutting it personally, so go ahead and tell them.

    I only cut my centers on Saturday or late in the evening due to concerns about injuries.

    Good Luck

    Jim
     
  7. Lawn Sharks

    Lawn Sharks LawnSite Senior Member
    Posts: 394

    I had a chance to do a daycare but I wouldn't go near it during the day and it didnt fit my schedule very well. Get headlights and do it at night (if your local ordinances allow) or do it on Saturday.

    You couldnt get me to start a mower next to a yard full of kids. My insurance agent would strangle me.

    Keth
     
  8. greenman

    greenman LawnSite Addict
    Posts: 1,405

    I would get a 1 million policy,no less for commercials. Thats what I carry. Mine is not too awful expensive, but it may be because I dont know what others are paying per month(or year).
     
  9. lasher66

    lasher66 LawnSite Senior Member
    Posts: 395

    I am not sure what kind of auto insurance you have, but I go through state farm insurance and they told me that my regular auto insurance would cover me when I am out cutting if I cut residential customers only. If I decided to start cutting commercial properties, then I would have to get a commercial policy on my vehicles. I know this dont pertain to your question about liability insurance, but just wanted to give you a heads up on your auto insurance.

    Lasher
     
  10. CMerLand

    CMerLand LawnSite Senior Member
    Posts: 393

    Lasher,

    Im not sure of the insurance laws in your state, but from your post are you implying that your AUTO insurance will cover you as long as your not doing commercial properties? What your agent tells you before an accident versus what the insurance adjuster does to you after the accident can leave you without insurance when you need it most.

    After you get into that accident while pulling all your lawn equipment around Mr. Adjuster comes up to you and says, "So Mr. Lasher, you were using your vehicle for a commercial business??" And you say, "Well uhhh yes, but only at residential properties." And he says, "Well sorry Mr. Lasher, you committed insurance fraud and used this vehicle outside the terms of your policy so, we will deny your claim and all costs are your problem." And then you reply, "But wait, my agent said I was covered!!!" at which point he pulls out your policy, which Im sure in the fine print somewhere will say that you use this vehicle strictly as a personal transportation vehicle only at which point coversation is over and you kiss your truck, house bank accounts and future earnings goodbye.

    As far as for some of the other comments on here, $1,000,000 coverage is just that. ONLY $ 1,000,000 in coverage. If you get a judgement over that amount, guess who pays that??? Yep YOU DO!!! And for all those who dont read the newspapers or watch the news, jurys are ridiculous with some of their settlement amounts.

    Your options then are to get additional insurance, umbrella coverage or truely the only way to protect your assets is to have your company incorporated. This wont protect you from intentional negligence, IE dumping pesticides down a sewar, but will protect your assets if you do have that huge judgement go against you.

    CMerrick
     

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