why insurance is essential

Discussion in 'Lawn Mowing' started by YardPro, May 2, 2007.

  1. YardPro

    YardPro LawnSite Gold Member
    Posts: 3,563

    This is a very important thread so I am posting it in all the major sections. I hope that the moderators allow it to say.

    We had an incident this past weekend that exemplifies why you need to carry insurance. We have been in business for about 25 years and never had a major claim. Our business has 3 divisions-pool service, grounds maintenance, and landscape construction…

    This past weekend one of the new ocean front condo’s where we service the pool burnt to the ground. The pool heater malfunctioned and caused over $6million worth of damage. Although we have never worked on the unit, we use the local gas company for that, we are still being sued (as is everyone else associated with the complex).

    If it were not for our liability policy we could not afford the legal battle that is coming. We will not be liable, it will be the issue of the company that installed the heater, the heater manufacturer, or the company that serviced the heater (has never worked right in the year it has been in).
    Even though we will not be liable, we are still being sued, and if we had not had adequate insurance then we would be bankrupt from the legal fees associated with this problem.

    This is a prime example of why you need business insurance. Something can happen at a property you maintain. Although it may be no fault of yours, you can still have consequences.
  2. Liquidfast

    Liquidfast LawnSite Senior Member
    from Ontario
    Posts: 739

    I agree it is important to note your experience but insurance is important for a number of reasons. From a simple rock flying into a window (or worse, a persons eye) to your situation.

    Life insurance, workmans comps ins. and disability insurance are all equally important.
  3. Mark in MD

    Mark in MD LawnSite Senior Member
    Posts: 322

    A guy I know who subs for a plow company told me this story. A plow company had the contract to plow a Safeway parking lot near here. After one particular snow storm, an icicle formed on the roof edge and fell, striking a shopper who was exiting the store. The shopper was struck at the back of the neck became paralyzed.

    Safeway sued the plow company. The court found the plow company at fault because the plow company did not specifiy in the contract that icicles hanging from the roof would not be cleared. This is a true story.

    Good thing he had insurance.
  4. paolaken

    paolaken LawnSite Senior Member
    Posts: 699

    man-o-man what bs. not the plow companys building.
  5. NELawnCare

    NELawnCare LawnSite Member
    Posts: 175

    I would just like to add some sorta-related words to this thread. I was involved in a HUGE lawsuit. It was not lc related. It was an Intellectual Property dispute (copyright sorta-stuff). I was lucky enough to have a financial backer who paid my legal fees, which exceeded $200K in less than 6-months. Had I not hired a "high-power" attorney that squashed the case quickly, the costs would have gone into the $Ms and drug on for years.

    No one ever expects to be sued. Unfortunately, lawyers are the only ones that really benefit from suits. They sit in the wings and wait for the opportunity to strike it big with a suit. I know most folks here think of lawn care as a harmless business, but the few examples given by ProYard and Mark in MD are great examples of how the legal system is imperfect. Even if you are completely innocent or unrelated to an accident, legal fees can instantly bankrupt you. Anyone can sue you for anything, whether it's reasonable or not. By the time it's all sorted out in court you're already out of money and bankrupt.

    Just My 2-Cents. Insurance is worth it's weight in Platinum coated Gold.

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