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Questions About Insurance

Discussion in 'Introduce Yourself' started by thegrassisgreener, Nov 22, 2009.

  1. thegrassisgreener

    thegrassisgreener LawnSite Member
    from TN
    Messages: 5

    I'm about to start my lawn industry this spring and am looking forward to getting to work. I have a question about business insurance. Where do most of you get your business insurance? What dollar amounts of coverage do you get? What are the average rates? Just looking for some ballpark estimates.
    Last edited: Nov 22, 2009
  2. Mike's LawnCare Landscape

    Mike's LawnCare Landscape LawnSite Senior Member
    Messages: 487

    I started out at the $600,000 Liability Insurance. But then up it to $1,000,000 and was shocked that the cost diff is less then if you took 5 guys to lunch one day !!
    Mine is with Nationwide and the price is over $500 under $1000 for the year !
  3. thegrassisgreener

    thegrassisgreener LawnSite Member
    from TN
    Messages: 5

    That sounds great. Do you have employees? If so, do you have worker's comp insurance and how much does it cost?
  4. BearWise Landscapers

    BearWise Landscapers LawnSite Senior Member
    Messages: 456

    Greener Grass,

    Keep in mind that insurance where you are in Tennessee may be different than insurance for landscapers in other states. Each state has its individual regulations for workers comp and other types of insurance. Pricing may also vary quite a bit between states.

    With that in mind, I recommend that you call up a few different independent insurance agencies around you and see which ones are the most willing to help you out as a small business owner. They may all represent the same mix of companies or at least the same company that has the best rates and coverage available for your business. Therefore, I would only suggest that you get comparative quotes from two or three different agencies.

    The types of insurance that you will need are general liability insurance and commercial auto insurance. If you have employees then you will need workers compensation insurance. I would also recommend that you get a quote on equipment floater insurance so that you can protect your equipment from theft and other damage. I highly recommend this coverage if you make a big investment in your equipment and have a lot of valuable items.

    Here are a couple of articles I wrote for insurance to protect a new landscaping business:

    Let me know if you have any questions or if I can help you in any way. I only provide insurance to landscapers in Florida, but would be glad to answer questions for you or even take a look at the quotes you receive to review the coverages they offer your business.

    Good luck with your business!
  5. nicholsmowingservice

    nicholsmowingservice LawnSite Member
    Messages: 63

    I carry 1,000,000.00 Liability insurance i pay around 500 a year.
  6. Contractors Pro

    Contractors Pro LawnSite Member
    Messages: 4

    General Liability insurance is usually based on gross sales. Being that you are a start-up, your general liability shouldn't cost you more than $500 a year for a $2,000,000 polcy. As to what limits you should carry, usually $1,000,000 has been the "standard" but if you are doing work on larger commercial projects, they may require you to carry $2,000,000.

    You may not be required to carry worker's compensation insurance , but I would definitely look into the equipment floater.

    We write insurance in TN, call me at 1-88-258-8808 for some quotes if you are still in the market.
  7. BearWise Landscapers

    BearWise Landscapers LawnSite Senior Member
    Messages: 456

    This is accurate information. In Florida, it tends to be cheaper for landscaping and lawn maintenance businesses to rate the general liability insurance policy by your annual payroll instead of your gross sales. It depends on the insurance carrier and the rates they have for each.

    DLONGLANDSCAPING LawnSite Bronze Member
    Messages: 1,418

    how much do you guys think an 18 year old could get covered for 2 million liability insurance for. per year. I have three commercial properties that will hire me if they sayi get insurance. Let me know ASAP, also, does this insurance cover just summer, or winter too
  9. BearWise Landscapers

    BearWise Landscapers LawnSite Senior Member
    Messages: 456


    I briefly answered your question in your other thread. The prices vary around the country, but your general liability insurance should be around 500 dollars for the year. Your commercial auto coverage is tougher to estimate. I recommend that you read this article about types of insurance for landscapers. I imagine you will have more questions, so feel free to ask me and let us know what you decide to do.

    Good luck!

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