Insurance & Liability for Small LCO

Discussion in 'Starting a Lawn Care Business' started by DowntoEarth, Feb 7, 2004.

  1. DowntoEarth

    DowntoEarth LawnSite Member
    Messages: 23

    I'm working part time as a LCO so my wife can stay home and raise or kids till their in school. I've lined up 15 yards for this season and I'm planning on hiring 1 worker. How should I handle Liability Insurance for both my Customers and my Employee. I don't think I can afford to purchase Workers Comp.

    I'm planning to grow the business in the years ahead but can't afford to get ahead of myself financially.

    Advice is greatly appreciated!!
  2. ElephantNest

    ElephantNest LawnSite Bronze Member
    from La.
    Messages: 1,878

    Skip the help, and do the work yourself. Just get legit and buy a year's worth of business insurance.
  3. jajwrigh

    jajwrigh LawnSite Bronze Member
    Male, from Martinsville, IN
    Messages: 1,405

    I agree with elephant, you don't need help with 15 yards! You will save a lot of money by staying solo at that size.
  4. WAGS LandL

    WAGS LandL LawnSite Member
    Messages: 82

    Man, don't waste your time or money with extra help now. With
    15 yards you don't need the help or the expense. Work small
    get liability to cover you and the business and inland marine
    coverage for your equipment. It is not that expensive and will
    make you legit.
    I did 14 lawns part time while working full time with no help, while my wife stayed at home, so I know where you are coming from.
    Good luck! Get insurance
  5. Gerg21

    Gerg21 LawnSite Member
    Messages: 20

    I have a question. I was wondering what is a LCO?. I have been doing research at my state dept. of assessments and I was going to apply for my LLC. I see that most people are LCO on the site. Do you still get LCO trough the state dept. of assessments? One other question what is a S corporation, C corporation. Any help one what I need to get would be great.
  6. chevyman1

    chevyman1 LawnSite Senior Member
    Messages: 852

    I just received my LLC status here in NYS...$200 to file, and I have $500k liability insurance for $650 a year...not too bad...I keep 75% of my accounts on the books, 25% off and pay my help (if and when needed) out of that cash pool
  7. James Cormier

    James Cormier LawnSite Bronze Member
    from Ma
    Messages: 1,217

    if you cant afford workmans comp then you shouldnt be in business

    lco= lawn care operator

    if you pay employee's cash, you are just asking for trouble,if you cant do it right then dont do it at all.
  8. chevyman1

    chevyman1 LawnSite Senior Member
    Messages: 852

    Workmans comp isn't necessary if you are a small operation like you are talking become big, then obviously you need to do it. Save your cash if you only have someone helping you sometimes, and you don't have to take out workman's comp on yourself
  9. 65hoss

    65hoss LawnSite Fanatic
    Messages: 6,360

    Take the money it would cost you for a helper and get very productive equipment. You can do 15 lawns by yourself if you really desire to do it. Just starting and paying a helper will strap you more than its worth, especially with only 15 lawns and wanting to let your wife stay at home. Working solo can be VERY profitable, but add a helper and it goes down drastically.
  10. chevyman1

    chevyman1 LawnSite Senior Member
    Messages: 852

    65 Hoss is exactly correct and he's been in this for a long time...take his advice on this

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