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Doing "Release from liability" instead of insurance?

Discussion in 'Business Operations' started by Mr. Magpie, Feb 26, 2006.

  1. Mr. Magpie

    Mr. Magpie LawnSite Senior Member
    Messages: 325

    I only work part time with my brother and my friend, so I have opted to never use insurance for my business. However, there are bids out there that supposedly require you to be licensed and insured.... if I sign a waiver and give it to them, won't that settle their concerns? Is this done in the industry? I am certainly not going to come up with a million dollar policy just to do several jobs throughout the year with no employees....
    What do you guys suggest?
  2. Az Gardener

    Az Gardener LawnSite Gold Member
    Messages: 3,899

    No-that wont work, see a lawyer for details but you can not give up your rights no matter how much paper you sign. They want you to have insurance to pay for damage you cause, not if you get hurt on their property.
  3. Roger

    Roger LawnSite Fanatic
    Messages: 5,943

    Mr M ... What do you mean by waiver? An insurance policy is giving the customer assurance you have a way to pay for damages you caused. Why would a customer have their concerned satisfied by having you sign a waiver to forego their opportunity (need) to collect on damages you caused?

    Your post makes no sense, unless I read it wrong.
  4. Trinity Lawn Care  LLC

    Trinity Lawn Care LLC LawnSite Senior Member
    from NJ
    Messages: 946

    Mr. Magpie, the million dollar policy is probably less expensive then you think. In addition, the insurance not only covers your customers butt, it also covers yours. It is not just the damage to their property. It is damage caused by you and your company. How about if some kid was walking by and something come flying from under your deck and took the kids eye out. You are on the hook. Besides, most folks especially will not sign a waiver holding you harmless to damages that can possibly be caused by you and/or your company. In addition, many commercials would not have the liberty to do so. Corporate would not allow it, and their insurance company may not allow it.
  5. bvlawn&landscape

    bvlawn&landscape LawnSite Member
    Messages: 2

    Theres a 1 in a 1,000,000 chance this would happen. Common sense would be if you see someone fixing to walk by just turn your mower off.

    CLARK LAWN LawnSite Silver Member
    Messages: 2,526

    what if your cutting a shopping plaza are you going to shut your mower off every time somebody walks by if so you will never get done. and a rock coming out from under your deck can travel well over 100 feet.
  7. YardPro

    YardPro LawnSite Gold Member
    Messages: 3,570

    this is a stupid justification for not having insurance. Obviously you don't have any..
    a $300k policy is less than a few hundred bucks per year... CHEAP....

    personally i have way too many assets to loose to risk not having a policy in place...
    all it takes is someone SAYING you dammaged something ( wether you actually did or not), to put in some serious financial problems...

    here's a good scenerio..

    kid borrows dad's slk500 mercedes for a date.. dings the door on something... dad if furious and asks what happened... Kid said it must have been the guy mowing the XXX apartments i passed... i thought i heard something hit the door.....

    dad tracks you down and now you are sued for a few thousand worth of repair bills...

    stuff like that happens all the time..

    if you are doing this professionally there is NO JUSTIFICATION for not having at the minimum a $300k policy....
  8. Trinity Lawn Care  LLC

    Trinity Lawn Care LLC LawnSite Senior Member
    from NJ
    Messages: 946

    There have been many threads over the whole to have insurance or not. If you are a real business you need to have insurance and real business practices in place. 1st: Again, many commercial properties are not even going to entertain your bid if you do not have insurance ( and many, at least around here require a min 500k - 1mil gen). 2nd: There are some homeowners that will not allow you to do their lawn if they knew that you did not have insurance. Especially, if they knew that by you not having insurance that it is putting them at risk. In fact, forget about potential bodily injury to anyone, many homeowners insurance policies will not cover damages caused by "contractors for hire". You could go on making a list of the pros and con's to insurance. I know that the chances are slim that anything serious is going to happen. However, it could happen and it does happen. Even if the chances were 1 in 1,000,000,000 would it still not be worth it. If not having the insurance prevented you from landed a 30k a year contract or a 15k a year contract, or even a 8k a year contract, or multiple contract. How about if you happen to be that lucky person that unimaginable happens to and it is going to cost you 50k - 150k in damages. Hey, odds are high but even someone hits the lottery. I mean insurance is only a few hundred bucks to maybe 1,500 in most cases. It's a write off. It offers you more opportunity and protects your back side in the "unlikely events". JMO
  9. baddboygeorge

    baddboygeorge LawnSite Bronze Member
    Messages: 1,249

    liability policies are not that expensive an i would never work without it!!
  10. MarcSmith

    MarcSmith LawnSite Fanatic
    Messages: 7,157

    the one in a million shot....I was cutting grass at the State police Barracks in Rehoboth beach DE in the summer around the late 1980's My folks had the contract. The DOT had just finished putting in some EMCO steel barriers. They ledt on of the 3" long 3/4' think bolts that they used to bolt the barrier to teh I beam. I did not see it....the mower blade caught it. it then ricocheted off a sign post can came back to hit me in the side of the head. Knocked me off the mower and the mower continued truckin towards the road until the operator prescence safeties kicked in....

    WhenI was working fo TGLc as a manager. one of the guy was mowing with WB mower. Picked up a peice of metal that hit a fellow employee about 40 feet away. the employee had go to the emergency room and have a testicle removed...

    I was the safety and insurance subrogation manager fro TGLC and most of my dealing were window/rock breaks....it amazing what a peice of low E double pane glass costs....Don't even think abaout a back glass with defrost element on a new SUV....

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