Starting Out WIth Insurance

Discussion in 'Lawn Mowing' started by jeffh1988, Aug 4, 2004.

  1. jeffh1988

    jeffh1988 LawnSite Member
    from MS
    Posts: 112

    I am 16 and have been mowing grass for two or three years now and am growing i just had the oppurtunity to buy a guys buissness All accounts and Equipment. I am up to around 20 to 25 solid accounts plus school everyday keeps me busy so i have a buddy who helps me out sometimes when i am in a tight or need some extra help doing something. Anyway he is looking for more work and i am still growing so i am thinking about getting him to help me all the time. My questoin is since i am 16 and i am not officially a buisiness can and should i get insurance. I haven't really woried about it until now since i wanted to get full time help. If it were just me i wouldn't be woried about it, so what are everyones opinion on insurance in my situation?
     
  2. paponte

    paponte LawnSite Silver Member
    Posts: 2,366

    Don't know the laws by you, but you have to be at least 18 in order to even have a DBA in NY.
     
  3. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    ok, I have a question and I know others want to know as well. How have you been growing your business for 2 to 3 years when you are only 16 now?

    If I was you, just maintain the accounts you have now, and then once you turn 18, go full force into it. Worry more about school. Because an education will always be there for you, while lawns won't
     
  4. Up North

    Up North LawnSite Bronze Member
    from MN
    Posts: 1,063

    If I were you I'd get insurance or have the parents take out a policy for you in their name. Because if something flys out of your mower and takes out a window, or your co-worker cuts off a toe, or worse yet, something takes out a customers eye...they will go after someone. If you are too young to have an official business they probably can/will go after your parents...so I'd suggest getting some insurance. I'd never operate without it as you never know when something will happen.

    Buck
     
  5. jeffh1988

    jeffh1988 LawnSite Member
    from MS
    Posts: 112

    It started out doing odd jobs two years ago and i ended up mowing some yards around my neighbor hood so i didn't have far to go i had a couple other that my dad took me too. I got my liscense begining of last year. so i have slowly grown. Does that answer your questoin of age.

    I have pretty much taken over this buisiness now and have a guy working for me all the time so i have plenty of time for things like school and other things. Come spring if i have bitten off more than i can chew i will probably drop a few yards.

    The information on insurance was what i was looking for now b/c the last thing i need is somebody sueing my parents because of an accident. So i will be checking into an insurance policy ASAP.

    Now we have established that what is yalls opion on the insurance. What do i need how much liability, how much on my liability, etc...
     
  6. RedWingsDet

    RedWingsDet LawnSite Gold Member
    from Detroit
    Posts: 3,556

    im 16. i have the DBA in my fathers name *have to be 18), same with insurance. and i have usually 2 employees with me at all times, a few weeks ago i had 2 crews 5 and 3, i also 10-99 my employees. When im 18, im getting it transfered into my name and getting it Incorporated.
     
  7. snippy

    snippy LawnSite Member
    Posts: 130

    Where are the lawns going?... do you know something the rest of us don't?... should I be worried?
     
  8. Oldtimer

    Oldtimer LawnSite Bronze Member
    Posts: 1,458

    A business is a business. If you are a scab doing a few lawns to help the family pay the rent in the trailer park then work for cash and with no insurance because y'all ain't got nuttin to lose. If you are in business then run it like a business.

    There are many rules that determine when a worker is an independent contractor and gets a 10-99. Working for you using your equipment and the fact that you can fire the worker at will requires him to be treated as an employee, not an independent contractor.

    Oldtimer
     
  9. Up North

    Up North LawnSite Bronze Member
    from MN
    Posts: 1,063

    Jeffh, I have a $330,000 policy right now thru American Family that costs me $354 a year. I will be bumping that up to at least a $1,000,000 coverage for next year. Some commercial properties require that you have at least a $1,000,000 and I've seen some guys on Lawnsite.com talking about that number going up.

    Start by contacting the insurance agent your family uses, he can tell you all you need. If he doesn't do Gen. Liability he will know someone who does. Good luck.

    Buck
     
  10. jeffh1988

    jeffh1988 LawnSite Member
    from MS
    Posts: 112

    Well that is what i was asking the second time. I wanted a figure on how much insurance and i was thinking in the range of 1 million so how much will that run you a year?

    thanks for the info Buck
     

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