Some Insurance won't cover Spraying

Discussion in 'Pesticide & Herbicide Application' started by MOW ED, Feb 12, 2002.

  1. MOW ED

    MOW ED LawnSite Fanatic
    Messages: 5,028

    I'm putting this here because it directly relates to spraying as well as business.

    I have been searching for a new insurance carrier as my current one has gone thru the roof on prices and I got a funny call the other day from a State Farm Insurance agent.

    My inquiry letter mentioned that I am a licensed pesticide applicator and that I was looking for insurance for liability and equipment coverage for my lawn care business. I said that I would like a seperate quote on the spraying end.

    This agent told me that this nationwide company would NOT insure me if I sprayed pesticides. No way, no how. They don't offer a policy for that.

    What the heck is going on here? Amyone run into this??

    Also, if ya don't mind- What are you paying and thru what company?
  2. Ground Master

    Ground Master LawnSite Senior Member
    Messages: 505

    Check into American Family Insurance........although I';m not sure if they cover spraying, there rates seem very reasonable
  3. GroundKprs

    GroundKprs LawnSite Bronze Member
    Messages: 1,969

    That is what underwriters will look at in determining coverages. State Farm will not get involved in chemical liability; they made that decision years ago. That area is left to other underwriters and specialty companies. A specialty underwriter will know the field well, and know how to judge your liability setting. (State Farm does not choose to get into too many specialty areas; they are into more general coverages. Some agents will not even deal in business coverage.)

    Questions a knowledgeable agent will want answered:
    1- Most important: is your spraying the backbone of your business, or is it incidental to your overall services? (What percentage of your work time is spent on this, and/or what percentage of your gross revenues?)
    2- Does your state pesticide regulations require a specific clause in the policy covering pesticide coverage? (Some general liability underwriters will sign a state form asserting limited pesticide coverage, but will not include a clause stating that in the policy.)

    Have you checked with your state or regional lawn care association? Our state lawn care assn. years ago sought out agents who would be good in getting you this coverage. Prices are generally lower than going it alone, because these agents are dealing in volume from so many operators, and they don't have to spend a lot of time researching underwriters, because they know where to go.

    Remember also that almost all insurance premiums are set by state, based on historical experience in the state with the covered business area. So price comparison is only valid to others in your state. The same underwriter might charge you three times as much as your buddy in the same sized business in an adjoining state, or 1/3 as much.
  4. Evan528

    Evan528 LawnSite Silver Member
    Messages: 2,144

    I found out yesterday I passed my pesticide exmam. I marched right over to my insurance agent to add pesticide use on to my insurance plan! Cost me 50 dollars a year extra!:blob3:
  5. MJB

    MJB LawnSite Silver Member
    from Wa
    Messages: 2,869

    Evan, Did you tell your ins agent you were a commercial applicator? My agent made me buy a separate $100,000 policy, from my business ins.
    Cost about $800 per yr. Required before I could get my license sent to me. But I live in Wa St. could be more here. Check out your coverages etc so you don't have problems down the road.

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