Commercial Insurance . . on just one truck but personal ins on the other?

Discussion in 'Starting a Lawn Care Business' started by Exact Rototilling, Mar 19, 2008.

  1. Exact Rototilling

    Exact Rototilling LawnSite Fanatic
    Messages: 5,378

    Long story short commercial coverage for my Lawn & Garden biz which includes snow removal which I don't as yet do. Will run me $1092 for 1 mil per occurrence max of 2 claims per year for 2 mill. Lower coverage really isn't that much less. 300k/600k would only drop it to $868.00

    Coverage for my 2 Toyota is $1690 per year for 1 million. Lowered coverage down to $300k only drop it down to $1,506.

    In order to save money I'm thinking about only having commercial insurance on the 4runner and basically not planning on using the truck except on occasion.

    So I'm basically looking at business coverage for vehicles, trailers & equipment that is essentially costing me $1600 a year just to do business over my preexisting insurance.

    So how many here admit to having commercial coverage on one work vehicle then having non-commercial coverage on their back up vehicle which isn't worth that much. The truck I'm pondering not insuring commercially is barely worth $2800 if that and it currently is not covered for collision - only comp and liability anyway.

    So lets say my 4runner is in the shop and something happens with the private insured truck pulling the commercial trailer and equipment which is covered on the commercial policy . . . what kind of tangled mess would one have on their hands?

    And yes . . . if I was to get rid of both older Toyotas and purchased an newer rig the rates would be substantially higher for just one newer vehicle.

    The other option I'm considering is dropping commercial coverage completely in early November after the last clean up ends and restarting it again in April. If I end up plowing or doing any snow removal then I'd keep it for 12 months.

    My agent also deals with a variety of Ins Companies and the others that don't cover plowing are more than what I just stated here. :(

    Any input?

  2. Exact Rototilling

    Exact Rototilling LawnSite Fanatic
    Messages: 5,378

    Update! FWIW

    Going ahead with full commercial insurance for replacement costs on equipment, trailers, liability etc. for 1 million big ones with max yearly payout of 2 mill and commercial insurance for both my old Toyotas. Any other source would be well over $3,000 a year over private insurance if have now. Basically costing me $1800 a year to do work for 7 months out of the year with my preferred discount.

    Roughly $250 a month for insurance during the growing season since I don't plow snow but at this rate maybe I will.

    So much for the $800 a year I keep hearing about. :rolleyes:

    Now I know why many don't bother with Insurance, license bonding, legit etc.
    :cry: :laugh: :cry:
  3. Mark Bogart

    Mark Bogart LawnSite Member
    Messages: 174

    That's the price one must pay to be legit! Better to be safe than sorry!
  4. grapeford

    grapeford LawnSite Member
    Messages: 104

    I did that for awhile when i was young and stupid. Insurance is insane and through the roof, and unfortunately it's a necessary evil. If you're pulling something with the 4runner and you get into an accident, you're screwed. will it happen, maybe not...but if it does. Any of you guys who own property, Homestead your primary residence, it's cheap to do. and will save your home if you're sued.
  5. ALC-GregH

    ALC-GregH LawnSite Fanatic
    from PA
    Messages: 7,051

    I'm waiting to get a quote on insurance as I type. I'm looking at the basic liability plan to get started. That might be the deciding factor if I have insurance to get started or not. I hate flying by night! :angel:
  6. Exact Rototilling

    Exact Rototilling LawnSite Fanatic
    Messages: 5,378

    Unless your equipment is worth a huge wad of cash - I'd just do that and get liability for now. I'm just glad my Toyotas are paid for and have been for years. I have way more $ tied up in equipment now than I do in tow vehicles including my other economy cars which are driven the most. If some low life runs off with my stuff at this point it's a huge loss that would take decades to recover from if one was to work it off at a regular time card punching type job.

    I'm now up to the full 1.5% on my old AMX Costco cash rebate card and I get 5% back on all gas purchases on my other AMX card. Paid in full every month other wise the rebate is silly bait.
  7. ALC-GregH

    ALC-GregH LawnSite Fanatic
    from PA
    Messages: 7,051

    My truck is a Explorer and I use a 5x8 trailer. Cheap riding mower for now with a Echo blower and weedeater. If I can get enough accounts started this year, I may get a new mower. I intend on doing this for a living and by myself to keep overhead down.

    CLARK LAWN LawnSite Silver Member
    Messages: 2,526

    did you call Japan for a price on insurance? since you gave them the money for the trucks maybe you should give them the money for insurance to.when you loose work to lowballers just trying to feed their families be sure remember your part of the problem.
  9. Exact Rototilling

    Exact Rototilling LawnSite Fanatic
    Messages: 5,378

    Clark Lawn,

    Have you ever owned a Japanese made car, truck or motorcycle in your lifetime? Trail 90, dirt bike, ATV of any kind? If yes then your out of line.

    I'm the original owner of my 85 Toyota, 2nd owner of my 91 4runner and for what's worth I have a Honda Civic that I bought new in 93 that just turned 268,000 miles with no end in sight on the original engine and I will be driving that car for years in the future. As Painful of a pill as it is to swallow the Japanese auto manufactures forced the US big 3 make better cars and trucks out of necessity. Pardon me for not having a 2005 Chevy Duramax 2500HD with a hefty monthly payment - I'd rather put working capital into equipment that makes turns cash flow than to pile it into a load of debt on truck I don't absolutely have to have in the next 10 minutes. Hey . . . but the new truck might happen in August if this years cash flow works out. :)

    I bet your house if full of stuff Made in China just like the rest of us. If you look around your house I'm sure products that are made in China out weigh US made products. If it's any consolation I really work at NOT buying stuff not made in China. Last time I checked Japan is not planning on a Pearl Harbor II but China has been grinding a battle axe for many years.

    You might want to take your comments further up the food chain where they might be more productive such as at US auto manufactures back in 1980's & early 90's. I almost forgot I found a used 98 Civic Hatch Back last year that wasn't destroyed by tuners so I suppose 3 families went hungry in June of 98 because of my used car purchase last fall because I failed to buy a crappy used Dodge Neon of the same year. Can you suggest a decent reliable tasteful economy car of that same era made in the USA that even remotely matches my cars in value and resale? Pardon me for taking care of my vehicles that will still be on the road for many years.

    Regardless thanks for your thoughtful contribution to this thread - much appreciated.


    CLARK LAWN LawnSite Silver Member
    Messages: 2,526

    never have and never will own a foriegn car truck or any other vehicle. as for evry thing else in my house i try to by american whenever possible. many times i have paid more just to get something that was made in america. im just saying if you love your japanesse trucks so much why dont you go cut grass over there.

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