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How much insurance is enough insurance?

Discussion in 'Business Operations' started by Moonlight, Jan 29, 2005.

  1. Moonlight

    Moonlight LawnSite Member
    Messages: 36

    Big bid I've been working on and the company's requirement is five million liability and one million on vehicles. I currently carry one million and 300 thousand on vehicles. Question: how much do you big commercial guys carry? Gripe: you know the insurance company isn't going to pay any claim that large!
  2. rodfather

    rodfather LawnSite Fanatic
    Messages: 9,501

    We carry 2M...5M requirement is BS in my opinion. 1M on the vehicles is a bit much too. What, they figure on one of your guys going beserk and crashing your truck through the front of their building or something?

    Sorry, but I can't think of anyone in OKC (I trained at the Hertz Data Center once a month for a full week there for 14 straight years) that important that needs that kind of insurance coverage. :dizzy:
  3. yamadooski

    yamadooski LawnSite Senior Member
    Messages: 434

    Ok one of my lawn buddies crew smashed into a lady.
    He had 1M insrurance.
    She sued for 3M and got 2.5M.
    Insurance payed the 1M then she filed civil suit and won that for the remainder.
    He had to sell all assets including biz and them filed bankruptcy.
    He waited for 1 year and started up again and the lady saw him at the g-station filling up.
    She saw all the nice equipment and said he still owed her. He told her to $##% off and said he contacted his attorney and he's good to go and off he went.
    So the moral of the story is no matter how much insurance you have they will find out and go above that.
  4. Carolina Cutter

    Carolina Cutter LawnSite Senior Member
    Messages: 984

    If they are requiring that much it would be an INSTANT red flag for me. Why are they requiring that much? Do they participate in America's most popular indoor sport.......suing the pants off of somebody???
  5. Smithers

    Smithers LawnSite Silver Member
    Messages: 2,265

    i will have a 1M insurance. they pay up to two accidents a year. i am an S corp, so the most i'd lose is the company. i am part time, so i dont care. my equipment is worth $10K at most.
  6. dforbes

    dforbes LawnSite Member
    Messages: 195

    large companys like this take the insurance requirments out of thier contract that they use for everyone. I have bid on many jobs that required this type of insurance, but when I talked to them and showed them my coverages they accepted what I have and gave me a waiver. Most of these companys realize you don't really need 5 million for what we do. They will however require to be additional insured on your policy. I carry 1 million liability and 500 300 100 thousand on vehicle insurance

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