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Fully Insured...what does this mean

Discussion in 'Business Operations' started by DJL, Jan 12, 2004.

  1. DJL

    DJL LawnSite Member
    Messages: 237

    Just finished my first full year in the biz. I have general liability insurance, commercial auto insurance, riders for slip/fall coverage for when I snow plow, I even have riders for my two trailers. However, I do not have Workman's comp. I was informed I didn't need it because I don't have any employees. It is just my brother and I who own and operate the company.

    Yes, I'm a small company. Only 9 res accounts and 1 commercial account this past year. So, now that I have a year under my belt I want to get more accounts. I've decided to try the flyers/handouts. I'm listing my services and I would like to say that I'm insured. My questions is, can I write that I'm FULLY insured? Fact of the matter is, I don't know what that means, fully insured. Is it the insurance amount, you have all possible coverage, what? I'm going to ask my insurance agent but I thought I would throw this question out there and see if I get a response by tomorrow and get others opinions. I'm finding this site and plowsite to have one thing in common, many different opinions.

    And yes, I have done a search and of the 5 or 6 I've looked at three didn't have anything except putting fully insured in the contract and the rest I keep getting Internet timeouts and I got feed-up with it. Any help is appreciated. Thanks.
  2. ksland

    ksland LawnSite Senior Member
    Messages: 927

    I think it just means you carry enough coverage for any likely accidents that may occur. I don't think someone would say they were 50% insured. If your brother is on the properties with you and you don't have a workers comp policy, he is not covered, only you under your business liability. So technically, you are not fully insured.
  3. Hawkeye5

    Hawkeye5 LawnSite Senior Member
    Messages: 295

    I don't think "Insured" requires modification. Just what "Fully Insured" means is entirely dependent upon the interpretation of the reader.
  4. DJL

    DJL LawnSite Member
    Messages: 237

    Well considering we are both owners I'm not sure he is not convered. Technically speaking we do not have any employees. It's just the owners doing the work. But, maybe we are employees. I'm going to have to sort this out. I left a message with my insurance agent and I'll see what she says.
  5. Randy Scott

    Randy Scott LawnSite Bronze Member
    Messages: 1,915

    It sounds to me like you ARE fully insured. You have everything insured and are insured should anything happen, that's fully insured to me.

    If you're business has both you and your brother listed as owners/partners, neither of you need workmans comp on yourself. You may get it if you want, but it's not required by law. Check with your state just to be sure though.
  6. DJL

    DJL LawnSite Member
    Messages: 237

    Spoke to my insurance agent. She did NOT recommend that anyone puts "fully insured" on their flyers, business cards, or any other form. She said anyone who claims they are fully insured doesn't know what they are talking about. She actually made a lot of sense. Their are so many loopholes and all that you need is one major occurence and bye-bye. She recommends putting insured on my flyer because I'm insured for everything that I need, and putting under that something along the lines of certificate of insurance, proof of insurance available upon request. This makes much better sense to me.

    It's just here in jersey their are a number of trucks and/or trailers with fully insured written on them. And it's true, what if their is a loophole in something and you weren't covered for that but you said you were fully insured? You are bascially up craps creek without a paddle. However, if they ask and you provide a certificate or proof of insurance the requestor will know exactly what you are covered for. Thanks everyone.
  7. rodfather

    rodfather LawnSite Fanatic
    Messages: 9,501

    I have been at this full time in NJ for the past 9 years. You do not need WC simply cause you have no employees...sole proprietors and partners are not considered employees.

    I have never been asked is my business "fully insured", only we need a Certificate of Insurance rod before we you do any work for us. My Certificate of Insurance will tell them I am "fully insured". It's pretty straightforward btw...
  8. DJL

    DJL LawnSite Member
    Messages: 237


    According to my insurance agent when a proof of insurance is provided the insurance certificate will indicate that I do not have WC. Curious if you have lost any accounts and/or single jobs due to lack of WC?

    According to my insurance agent the minimum amount for workmans comp is $850 per year, per employee. The rate is $9.86 per $100 dollars in payroll, plus $200 surcharge, plus 7% of crapola added in. I don't have the workload to be able to recoup that and then make money on top of that.
  9. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Messages: 10,178

    just because you have workmans comp, this DOESN'T mean you WONT sue the homeowner. . by me having workmans comp, it does not protect the homeowner in any way.
  10. BB36

    BB36 LawnSite Member
    Messages: 171

    Are you a Sole Proprietorship, a Partnership ,a LLC ,a Corporation S etc.? I would contact a lawyer. They can tell you what your insurance needs are. I know theres lco's out there who would say its a waste of money but they (knowledgeable lawyers) can help us.

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