Insurance question

Discussion in 'Lawn Mowing' started by smithsonmi, Apr 27, 2001.

  1. smithsonmi

    smithsonmi LawnSite Member
    Messages: 75

    We are getting our subdivision common areas quoted for mowing this season and got 3 quotes of similar $. A homeowner has stepped forward and offered his nephew's 'company' as a potential bidder. This bid was dramatically less ($3k/season vs. $4.5k) BUT they could not show that they were licensed, insured seemed like a side job. Now I have no problems with saving money but not at the risk of liability or conflict of interest.

    Unfortunately this blew up in a pain in the a$$ because we had to raise our dues to pay for the mowing as we seeded 4 acres of common area last fall and mowing is 1/2 of our annual budget.

    What would be considered the minimum requirements of a lawn contractor?


  2. Avery

    Avery LawnSite Bronze Member
    Messages: 1,389

    I would say at least workman's comp./liability ins./and several references from commercial jobs they have.
  3. AltaLawnCare

    AltaLawnCare LawnSite Senior Member
    Messages: 962

    In my area 2 million liability coverage is "required" to bid on commercial props.
  4. lsylvain

    lsylvain LawnSite Senior Member
    Messages: 778

    Workman's comp and insurance is a must. You would be surprized what one rock can do when shot out of a mower. I would be even more concerned about it if the person is a realative of one of the homeowners. One problem could cause an upheaval.

    Remember that cheaper is not always better. A lot of times people bid to low on a job to get the work and try to cut corners to make a profit.

    Getting liabillity insurance takes about 15 minutes over the phone and signing a few forms, and is not that expensive for a basic plan. If he doesn't have insurance tell him to get it. It will protect the both of you.
  5. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Messages: 1,913

    just a thought from past experience ..... I personally don't like working for friends or family if $$ is a consideration ....
    Quality of service with Professional requirements, service & experience will keep the "peace" in the neighborhood ...consider the bid ONCE liability insurance & WC papers are in order & check out a few references ....good luck


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