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What kind of insurance. And cost

Discussion in 'Starting a Lawn Care Business' started by SClawns, Dec 26, 2012.

  1. SClawns

    SClawns LawnSite Member
    Posts: 14

    I am close to having all the equiptment I need to start this year and I am now on the subject of insurance. Exactly what kind of insurance should I be getting and what is the round about cost I should expect?

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  2. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,353

    Health insurance I don't/won't do.

    Wrokman's comp the rates depend on the description you give for jobs tree workers is around 50% of pay landscape construction or hardscaping is also high close to 20% we do lawn-care and enjoy the low rate of 4.5% and we get a .3% rate for office. It is based on total income so when an employee is at time and half so is your insurance!

    Motor vehicle on the trucks we have full coverage there's little difference in cost from our 25 year old truck to our 6 month old ram 4500 its about 1000 a year here per truck for commercial insurance. This covers trailers and all thats carried by the truck and we keep 500k/1000k on each truck.

    Business liability insurance we keep 1000k/2000k on the business and we keep insurance on our equipment and shop. Our policy isn't written as the used values or replacement value. We have the values of each major piece of equipment written into the policy I.E. my 2003 lazer if stolen is 10k. Not sure of the break down between liability and the rest but it works out to about 1600 per year.
  3. Isenberg Lawn Care

    Isenberg Lawn Care LawnSite Member
    Posts: 61

    I dont do health insurance either. But Ill give you another rough idea of price. I was quoted for this year about $1000 for my million dollar liability. This includes my 2011 pickup and gear I haul along. That is for my Lawn Care side and also for if I plow snow this next year.
  4. GreenI.A.

    GreenI.A. LawnSite Silver Member
    Posts: 2,132

    Being that you are just starting out, you may not be required to have workmans comp. Here in MA we need to cover employees but the owners of smaller businesses do not need to be covered, and if they chose to be covered then they pay a much higher percentage than an owner of a larger company would pay. They assume a sole operator is more likely to file a false claim in the winter down time than the owner of a larger biz.

    Also our embrella policy for equipment, vehicles, and buildings covers purchase cost of the loss and not the replacement for the dame age vehicle etc. It also covers rental for when we are waiting for the insurance check to be cut.
  5. Duekster

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

    As a solo I would not buy comp but commercial accounts demand it.

    Many times you can get away with lower GL coverages like 300K but again many commercial accounts want to see the million dollar policy.
  6. Lazer Cut

    Lazer Cut LawnSite Senior Member
    Posts: 906

    I'm an insurance agent and I can do a solo opp, 1 million liability, 10k in equipment coverage, few other things built in for about $600 a year...

    for you truck... if you use the truck for more than 50% of the miles put on it are for business use then you need to change to commercial policy... if it is less than 50% use for business then you can keep it personal policy.

    When it comes to snow plowing that can be a seperate policy or added on to a contractors policy...

    an umbrella policy can be purchased also with equipment scheduled like said above if mower gets stolen it pays out x dollars.

    work mans comp on solo I thought it was cheap to get but that was 2 years ago when I looked into that stuff.

    this is all in Ohio though... I've wrote quite a few landscape companies over the last year n a half... personally I like going through State Farm or Nationwide will broker it out to a 3rd party for you which is pretty cool... I work for "you're in good hands" lol and we can do contractors policies but we are not well in the ballpark to do it.

    I can technically sell health insurance life etc. all lines except variable annuities an what not... I found that Humanna was the cheapest for health insurance... I'm a smoker (trying to quit ha) have a few issues and I believe I pay $130 a month and that includes dental and vision and no it is not a group plan that is my rate entirely. so shop around get some good deals out there just have to look around.

    for insurance purposes... truck mower etc. don't go with a rinky dink company or companies like the general or safe auto etc. go with a household name, why? we are probably more expensive etc. but we PAY and we don't stiff you when it is truley a claim situation.

    Company I work for if you're not happy with a claim and how it was dealt with... we will REFUND 6 MONTHS of your auto policy premieum in full to you.
    Last edited: Dec 28, 2012

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