Just getting started, insurance and contract ?'s

Discussion in 'Business Operations' started by jasonw, Jun 3, 2001.

  1. jasonw

    jasonw LawnSite Member
    Messages: 3

    Hello, I am helping my brother get a lawn maintenance company started and have some general business questions. We are located in southeastern Michigan and he has a 48-inch Bobcat and a 36-inch Exmark Metro HP walk behind to work with.

    1. How much should he be paying for business insurance and can anyone recommend a company to get a quote from. I have got two quotes already and they were $825 and $925 for $500,000 of coverage per incident, for the year. Does this sound about right?

    2. Can anyone recommend somewhere to get a sample lawn maintenance contract?

    3. How much should workmanÂ’s comp cost to add an employee part time when it becomes necessary?

    Thank you
    jason W
  2. Randy Scott

    Randy Scott LawnSite Bronze Member
    Messages: 1,915

    I was a little curious as to how you were born in 1970 and your age says your 54? Is that like dog years or something?
  3. jasonw

    jasonw LawnSite Member
    Messages: 3

    a rather severe physiological block to giving out free marketing data to companies. Now I realize that this isn't the case here, but remember I have a severe case. Say for instance, I am making a purchase with a credit card and they ask me my zip code and, maybe, if it is for personal or business use. Well I like to tell them, buy that info from that credit card company, because I am not telling you for free. Actually I was born in late 63 and that should make me about 38 years old, I could be wrong though, as I also hate to do the math on that kind of thing.
    Now I am curious, where you developed such a good eye for details?

    Thanks for replying to my post; even if was a little bit off topic. I.E. It is good to see you guys/ or maybe gals are out there.

    Jason W
  4. 1MajorTom

    1MajorTom Former Moderator
    Messages: 6,073

    Welcome to Lawnsite Jason.
    I also noticed the same thing and was wondering about your age too. You're not the only one out there who feels that way about giving out free info. I think I remember another member here, (Mr. Ziffel) mentioning the same thing before about giving out info.

    As for insurance, check out Erie Insurance. They seem to have good rates for where we are concerned.
  5. GreenQuest Lawn

    GreenQuest Lawn LawnSite Senior Member
    Messages: 822


    If you have Microsoft word, I can send you my contract. Its very simple, and can be altered to suit your needs. My Ins. Is 350/yr for 300,000 per accident. If you E-mail me I will give you the name and #.
  6. SCL

    SCL LawnSite Senior Member
    Messages: 543

    Hi Guys
    Your insurance sounds incredibly high. I just raised my limits and I pay $320 a year for $500k per occurrence and $1M agg. Also $60 for a 3 community bond. Good Luck
  7. Stonehenge

    Stonehenge LawnSite Bronze Member
    from Midwest
    Messages: 1,276

    It'll vary state to state, but I think you can expect to pay 8 or 9% of wages in WC.
  8. SCL

    SCL LawnSite Senior Member
    Messages: 543

    Okay, if you want to include workman's comp, mine has a minimum premium of $750 a year and a percentage comparable to what Stone says after a certain amount on top of the $750. The actual amount of what you owe is determined by the insurance company at the end of the year after they audit your records. Sounds like a lot of room for getting took to the bank so to speak, doesn't it?:angry:
  9. mbwent

    mbwent LawnSite Member
    Messages: 24

    our worker's comp is $12 per $100 of payroll in florida. for tree trimming, etc. it is $39 per $100. ask your insurance carrier about a pay as you go plan. start with a minimum payroll (usually $5000) and then you audit yourself monthly and are billed the following month for any overage.
  10. jasonw

    jasonw LawnSite Member
    Messages: 3

    It turns out the insurance was only $525, with another $265 for insurance on the equiptment. I know that is still high but i took it till i have more time to shop around for the better rate. We have several good acounts already, and are mowing one day a week.
    thanks again
    Jason W

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