why have insurance?????????

Discussion in 'Business Operations' started by stxkyboy, Jul 18, 2003.

  1. stxkyboy

    stxkyboy LawnSite Member
    Posts: 222

    I know I'm probably going to take a lot of nasty answers over this question but I'm just curious. It seems to me that everyone on this site either brags about how much insurance they have or tells everyone else that they need it. Now for my question...unless you are a really large company why have insurance??????? They can only sue you for the money you have...in this i mean if you have a million bucks of insurance then all of a sudden u set yourself up as a juice lawsuit target. The reason doctors get sued is because they have lots of money. I mean lets face it nobody in this industry is rich and there for realistically not a ripe target for a suit. Getting insurance just seems to play into the problem not help it.
     
  2. drobson

    drobson LawnSite Member
    Posts: 237

    Well, the quick and easey answer is that you should have insurance only if you are not prepared to lose everything you have. If that is not much, it's still "everything". To me, losing my house, trucks, and equipment is enough for me to get insurance. Besides that if you do personal injury damage to someone and they win a suit for 100K, they will attach your wages until it's paid.

    So, you will still be sued if you don't have insurance. I would assume if you can do the work that you have some equipment. If you own a house, that is more. If you live with your parents, they can attach their stuff as well. If you get sued once without insurance, you will be out of business.

    There is much, much more to talk about on this subject, but this should be enough to answer the question.
     
  3. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Great reply Dan.
     
  4. Turf Medic

    Turf Medic LawnSite Bronze Member
    Posts: 1,073

    This is a misconception, they can sue you for more than you have. After they take everything you have you can be making payments to someone for the rest of your life and bankruptcy won't help in most cases. It's no different than driving around without liability insurance. I met a man many years ago that had accidentally drove over a drunk laying in the street, no insurance, the judge ordered him to make payments to the drunks family until the children were out of college. Was never able to have much of anything of his own.
     
  5. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    It is to protect my house for me, a big lawsuit winner would look at your equipment and laugh at your dirty bent up mowers and contracts that are short term, or non existant, but for what it costs its worth it to not have to worry. But if you cant spare the money or dont want to how often do you hear about a bad thing happening to people. Sure there are the horror stories, but they are few and far betewwn.
     
  6. Lawn Tek

    Lawn Tek LawnSite Senior Member
    from u s a
    Posts: 457

    One Word LAWYERS
     
  7. grassdaddy

    grassdaddy LawnSite Senior Member
    Posts: 565

    Most places of Business require you have it.Some require 1,000,000 dollars worth just to cut grass.:eek:
     
  8. stxkyboy

    stxkyboy LawnSite Member
    Posts: 222

    Thanks for the replies......I also have a suggestion. It may be a good idea to put the house in your wives name(my dads a doctor)
     
  9. drobson

    drobson LawnSite Member
    Posts: 237

    If your married it makes no difference who's name the house is under. The only way to do it would be to put it in someone's name that is not related. Also, in some states it must have been transfered greater than 5 years or it can still be attached (unless it's an actual sale).

    As an additional security measure, everyone should file for the Homestead act on their house. It will put protection on your home for up to 300K in the event you get sued. Check it out online, you can sign up for it at your registry of deeds.
     
  10. Moguy

    Moguy LawnSite Member
    Posts: 238

    There are tons of reasons to have insurance. Depending on the circumstances and/or the parties involved insurance most likely will cover them. It's the same with being a sole proprieter or LLC, they have there advantages or disadvantages but, in this day and age with a good lawyer, they can get whatever their after
     

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