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Discussion in 'Business Operations' started by premierlawncaremi, Jan 8, 2012.
Do all commercial accounts require you to have insurance? and if so what are you guys paying for it?
Most all do require it. And even if they dont you should have it. Throw one rock through a window of a 500k home and see how much you pay. Or nail that BMW and see who has to cover the cost there. As far as what it cost ... I cant remember exactly but I think I am paying Around 2k for liability and auto. Then I have another 1k in workers comp. And WC is also usually required on commercial if you have employees.
very true! is it 2k/year?
Yeah, I think it is actually more like 2400 on the year but cant remember for sure. My yearly insurance including auto, equipment, liability, and WC is 3000-3500. WC depends on your payroll in most cases.
From what I've seen on here the Hartford has the best rates. One question for you guys though do you carry insurance in the off season?
I pay around 1800 a year for business and auto Insurance. Whenever I land a new commercial job, I have to add a rider to the policy that runs roughtly $25 a year. I do not have workmans comp because of no employees.
I keep my insurance year around for I have year around contracts in place.
My 2 mil liability only policy thru Erie Ins. costs approx. $450 a year.
I do NOT insure equipment (mowers, trimmers, etc). Waste of money IMO.
GL / WC is based on Payroll. Right now it is fairly cheap but figure 11% of your payroll. The GL will often add about 15K to the payroll to cover the owner but owners are not covered by WC.
I would highly recommend having insurance if you are cutting ANY lawns (Business or Commercial). Thankfully I have been fully insured since day 1 because my business is involved in a lawsuit because of an accident in front of an account I maintained. I was nowhere near the accident when it happened (was actually still home in bed at the time). I'm sure if the case went before a jury (which it may at some point) I would be found innocent. Anyway my insurance company has footed the bill for this lawsuit since 2008. I'm definetely getting my money's worth from my insurance. I think my total insurance bill is about $1500 a year for $1 million dollar coverage and about $1400 a year for the auto insurance with full coverage. No WC because I work by myself.
I have been in business for 6 years on my own and am confident that the $9K I gave them for insurance is less than what they have paid my attorney.
I have a $2 million in liability coverage and it costs me about $600 a year if I remember right. That price does not include auto coverage, equipment coverage, or worker's compensation. I would highly recommend that you have some kind of liability insurance before doing any mowing.