Liability insurance

Discussion in 'Starting a Lawn Care Business' started by GElawn, Feb 16, 2007.

  1. GElawn

    GElawn LawnSite Member
    Messages: 11

    I am starting this spring and have 1 large account, they requested that I have liability insurance. How much should I carry?

    I have contacted my local insurance co. , they gave me some choices of 100,000 300,000 500,000 100,000,000 the difference in price from the lowest to the highest amount is about 250. Do I need this insurance for just one account?

    This insurance really cuts into my profit margin, and I am not sure if I want to take on another account, with being I am just starting out in this biz.
  2. echeandia

    echeandia LawnSite Bronze Member
    Messages: 1,131

    Not having insurance and having an accident will really cut into your profit margin. I carry $1MM.
  3. Wells

    Wells LawnSite Member
    from SLC UT
    Messages: 0

    Agree 100%.
    We also carry 1 mil. but only because several of our commercial clients require that amount of coverage. If you were doing strickly residential properties you would probably be fine with 300,000 to 500,00.
  4. Robert S

    Robert S LawnSite Member
    from tx
    Messages: 97

    what would that cost per month/? 300,000 worth?
  5. godzilla

    godzilla LawnSite Senior Member
    Messages: 400

    I'm covered to 2 mil and only do residential work. It's money that I am glad to spend. Mostly for the protection of my clients, but for my own protection as well.
  6. Wells

    Wells LawnSite Member
    from SLC UT
    Messages: 0

    The price is going to vary from insurance company to insurance company but for $300,000 your probably looking around $600 or less per year or $50 per month. Well worth the expence.
  7. lawnpro724

    lawnpro724 LawnSite Silver Member
    Messages: 2,201

    Wells for that price or a little more you could get a million dollar policy so why would you want $300,000?
  8. trinitylandscape

    trinitylandscape LawnSite Member
    from Atlanta
    Messages: 7

    You definitely need insurance, it makes you look more professional and helps clients feel your prices are justified. Rates will vary from company to company just like auto insurance. It will also vary between LCO because General Liability is based on your payroll. This is my first year getting into the maintenance side of landscaping so I quoted my payroll on the lower side. I am with Montgomery Insurance, the business insurance division of Liberty Mutual. My annual rate for $1MM is $601/year or $50/ month. The most expensive part of insurance is having it, as you raise the limits it increases slightly, better to have a little extra than not enough!
  9. Wells

    Wells LawnSite Member
    from SLC UT
    Messages: 0

    I realize that there isn't a whole lot of difference in price ($200 per year +/-)between 1 mil dollar policy and a 300,000 dollar policy but for straight residential work a 1 mil policy is really overkill.

    Everyone needs to determine what amount of risk their willing to accept. So lets take worst case senerio and say you killed someone while mowing, even a 1 mil dollar policy isn't going to cover that lawsuit. Thats where you better have your business structured in a way that the family can only come after your insurance liability, then the assets of the business but not your personal assets.
  10. Cut n Edge Lawncare

    Cut n Edge Lawncare LawnSite Member
    Messages: 47

    get the million, if you screw up really bad, and there is always that chance, do you want to lose everything you have worked for? I have a million on my truck, a million business liability, and 10,000 on my equipment and it costs about $1700 a year. Dont take any chances there are alot of blood sucking lawyers out there just looking to sue you and make some $$$$

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