Questions about being bonded

Discussion in 'Business Operations' started by Precision Lawns, Feb 24, 2006.

  1. Precision Lawns

    Precision Lawns LawnSite Senior Member
    Posts: 283

    Right now we've just got a $1 million liability insurance policy, since all we do is maintenance and small landscaping (mulch, hedges, cleanups, etc.) Next season (2007) we're looking into getting licensed to do chemical apps and were wondering if we needed to be bonded if we start treating customers' lawns. We don't do large landscape or hardscape installs (yet). Do we need to be bonded, or should our liability insurance cover it? And if you are bonded, what types of services do you do that make your bond worth the cost, how much are you bonded for, and how much does it cost you per year? I've tried looking this up on our state's website, but I can't find a simple answer to this question. Oh, and right now we're 100% residential, but would like to start picking up commercial accounts in the next few years.
  2. jsf343

    jsf343 LawnSite Bronze Member
    Posts: 1,767

    I am in the same boat, From what I was told in my state you must have property and liability coverage for at least 25,000 and personel injury protection for the same. Here you do not need to be bonded. We want to get to the next level in a few years, Probably much like you according to your post. We also need an applicators license. (which I m guessing you do too) anyway talk with your local agriculture department, they will have more answers for you and your area. I know trying to figure out what you need can me a headache with a capital H. :hammerhead: good luck!
  3. jsf343

    jsf343 LawnSite Bronze Member
    Posts: 1,767

    can BE, BE a headache, not me. Man,I am typing and spelling bad today
  4. specialtylc

    specialtylc LawnSite Bronze Member
    Posts: 1,656

    A bond is usually only required if you are doing some form of install or construction. Such as, walls,sprinkler system install,etc.. A bond can be recieved from the state by giving them a cash deposit of about $5000. Or you can by an insurance policy bond and you pay a premium, about $200 per year.
    As for the pesticide insurance, it is usually a rider on your liability policy. My state requires $50,000 coverage.
  5. turf hokie

    turf hokie LawnSite Silver Member
    Posts: 2,744

    I am in the process of being bonded. But ONLY b/c I am bidding government work. Usually here they charge a % of the job that they are giving the performance bond on. The % varies as to how big the contract is. A bid bond is a little different b/c it is only a % of the total bid that is put out at the time of the bid submission.

    So basically getting bonded is not worth it unless you are bidding government work or something else where bonding is specifically required.

    I can't believe that some states only require 50k as insurance. We have to have million dollar coverage for liability.

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