New Jersey Insurancw

Discussion in 'Business Operations' started by AA961JESTER, Dec 18, 2001.

  1. AA961JESTER

    AA961JESTER LawnSite Member
    Posts: 48

    I am starting out in the buisness and am wondering about insurance. Can you guys give me an idea on what youre paying for insurance in this state. I am doing mostly residential lawn service. I am also doing snowplowing and salting. Most of my accounts are residential driveways, but I do have a few commercial lots. How do you guys handle this?:jester:

    PS I just registered with the state as a corporation .
     
  2. BRL

    BRL LawnSite Bronze Member
    Posts: 1,211

    "Can you guys give me an idea on what youre paying for insurance in this state."
    About $3,700.00\year

    "How do you guys handle this?"
    Request needed coverages. Pay bill. Wipe tears with tissue.

    Try Farm Family in Trenton. They have good rates & understand the landscaping\snowplowin industry.
     
  3. HBFOXJr

    HBFOXJr LawnSite Bronze Member
    Posts: 1,706

    TRy a broker that represents CNA. Some years ago CNA was endorsed by the NJ Nursery and Landscape Association. We've been with them and they don't jerk you around.


    Some companies avoid application, underground as in irrigation and snowplowing like the plague. Ask your rep what other landscape clients they have that you might know. Sometimes you'll get sold and then a little while latter get dropped because the agent BS'd people or doesn't understand the green industry.

    I'm not a fan of FArm Family as I once had them for homeowners and they told me I had to paint my house and several other non-insurance liability related things, so I gave them the heave ho. Maybe they are better now???

    Ohio Casualty doesn't like the industry.
     
  4. steveair

    steveair LawnSite Bronze Member
    Posts: 1,073

    hello,

    depends on a lot of factors. First of all, are you strictly lawn maint. or both lawn maint. and landscape gardening/construction?
    These are the two basic categories, landscape gardening having a higher rate.

    most rates are based on payroll. If you are a sole propietor and the the company is not necessarily paying you anything yet, then you will fall into a mininum type classification, say 0-24k, and will have a set rate.

    As I remember, business liability and workmans comp are both based on payroll. Rates can vary between 37 to 57 per 1k in payroll as a way to estimate what you might pay.

    I'm still investigating, but in NJ as a sole proprietor, you have the option of either having or not having workman comp on yourself....its an interesting option that may or may not be worth it for you.

    If you have employees, then you will have to have work. comp, plain and simple.

    As for snow plowing, it is a add on based on a few factors, first being the totol liability coverage you have and next the number of vehicles you have.

    for instance, for myself, I believe it was a one time flat fee of $400 added on to my existing policy to have snow plow insurance, which will cover up to 3 vehicles.

    Definetely shop around, as rates will change drastically from 1 insurer to the other.....and I mean drastically. Also, it is not easy to find people who are familiar with the landscape industry. I find myself explaining how things work to my agent more than they explain things to me!


    good luck.

    steve

    ps....one more thing.......after you get your insurance, get ready for a big increase....talked to 3 agents the other day and they are all saying the same thing.....15-20% increase in rates coming next year do to all that has happend recently! Ouch!
     
  5. Turfdude

    Turfdude LawnSite Bronze Member
    Posts: 1,900

    Farm Family is a goo start. You have to become an associate member of Farm Bureau ($100/yr). Get great rates on snow plowing (street cleaning is what they call it), for pesticide apps, and for your general service too! Remeber there are 2 different rates available. 1 - Landscape maintenance approx $5.xx/$100.00 of payroll and 2 - Landscape install approx $10.xx/$100.00 of payroll. Make sure you get the proper coverage you need. I have all of above thru them plus auto, workman's comp and a commercial umbrella.

    2 F-350 dumps (one full coverage 4 wheel drive), 1 F-150 p/u, 3 trailers approx $4500/yr w/a $100,000 policy and list 5 drivers.

    Other rates fall in line and are affordable w/ up to 10 payments/yr.
     
  6. HBFOXJr

    HBFOXJr LawnSite Bronze Member
    Posts: 1,706

    FArm FAmily must have changed a little. But we have way more coverage with CNA on the vehicles for about the same money. We'll have to compare notes.
     
  7. BRL

    BRL LawnSite Bronze Member
    Posts: 1,211

    Hmmm... My auto policy is for a million coverage, comprehensive & collision, on 2 trucks & they are about $1,100.00\yr. each.

    I have my homeowners with Farm Family also & my house needed a painting when they were here & they didn't make any stipulations or requests. So maybe they have changed. They have takne care of any requests \ questions I've ever had. Thankfully no real claims. I do have a potential slip & fall case pending, but the 2 year limit isn't up yet, & the plaintiff has made no moves since the initial report of the fall. FF responded promptly in regards to that claim, but they haven't had to really do anything beyond that. That's been my experiences with them. Also, their prices blew away all other quotes when I had first started shopping for insurance. I have heard good things about CNA and Suydam (Suydam may be a broker??) but have no experiences with them.

    The law just changed this year that allows owners of businesses to be covered by their Workman's Comp policies. In the past they couldn't. I bought WC insurance a long time ago because it was required to get some certain contracts that I wanted, even though I explained that I didn't need it (that I wasn't covered by it). Go figure.
     

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