Cya "not Being Paid" Insurance

Discussion in 'Business Operations' started by befnme, Aug 9, 2006.

  1. befnme

    befnme LawnSite Bronze Member
    Messages: 1,413

    i am looking for a type of insurance where if i sign a contract or not with someone for any amount of work . and then they welch on the deal and dont pay you . you can file pay your deductable and be paid by insurance .

    companies or contractors will have you to be " bonded " so that if you welch on a contract they can get you . why cant you have the same insurance . even if you have a contract and go to court " whenever " they still have so many years to pay you.

    yall know what i am looking for and what type it is ?
  2. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

  3. mslawn

    mslawn LawnSite Senior Member
    from LA
    Messages: 483

    I highly doubt someone would insure a lawn care contract.
  4. befnme

    befnme LawnSite Bronze Member
    Messages: 1,413

    not lawn care , landscaping .
  5. FANS

    FANS LawnSite Member
    Messages: 32

    easier to take a mechanics lien on their home? It's filed with the court and is part of the deed. They can't sell the house until it's been paid.

    At least you're not paying a premium based on your total business when only one person stiffs you. Also, with landscaping are you getting progress payments? That would make the insurance less (since there's less chance of the entire amount not being paid - if they miss a progress payment, you don't finish the work).
  6. MMLawn

    MMLawn LawnSite Gold Member
    Messages: 3,569

    You talking about "stop loss insurance" basically, but are doing big enough landscape jobs that are that large in payment that you would "worry" then you should already be getting at least a 50% down payment at the signing of the contract to cover your cost and liit any potential losses. If they are in addition very large, and so much so that you really need to worry about if you get paid, then you need to use the 1/3 method (1/3 down, 1/3 at the half way point and 1/3 at completion). Sure, you can always get stuck of course but if you "screen" your clients on large projects (which is to say multi-thousand dollar jobs which is the only ones I assume you would even be concerned with) and require deposits which is a very accepted method of doing business in landscaping yhen you shouldn't need stop loss insurance. If you are not doing one of these deposit methods then you are going about it all wrong. As to stop loss insurance I'm sure Lloyd's would write it, but your premium would probably be half or the total amount of the coverage.

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