Tricky Liability Insurance Question

Discussion in 'Lawn Mowing' started by fastmowing, May 11, 2001.

  1. fastmowing

    fastmowing LawnSite Member
    from Kansas
    Messages: 6

    I'm returning from college to my small hometown to mow lawns again this summer. With a 72" Chopper and a Hustler Shortcut, my company is a virtual monopoly around town. I have a kid that helps me out when I'm not around. (Technically he's a sub contractor - he pays rent on my equipment to mow when ever and what ever he chooses) That said, I have a question reguarding liability insurance: Are my mowers insured when someone else is operating them?

    Ok, thats real messy, here's a concrete senerio. My company is XYZ Mowing. Cousin Fred mows while I'm out of town doing business as XYZ Mowing. Are the mowers insured or is the company insured against liability?

    Thanks for your help...I've really enjoyed the bantor on the site and many things will change this summer for my business.
  2. TLS

    TLS LawnSite Fanatic
    Messages: 7,943

    You gotta watch the subcontracting thing(esp. with the IRS). He has to also sub out to other co's as well, I think. Also, he must be insured himself, I think. So technically, I think you could be screwed if something bad happened, I think.

    Good Luck
  3. Mr.Ziffel

    Mr.Ziffel LawnSite Senior Member
    Messages: 291

    Only your insurance agent and your accountant can give you good, specific advice related to your specific situation. We can give only our opinions, or in some cases I've seen the more informed members provide web sites or copies of insurance documents or IRS sections, BUT these are subject to interpretation and for me, I want MY accountant and MY insurance agent [on insurance matters] doing the interpreting BEFORE I make the wrong decision.

    A good insurance agent will have the information at his fingertips on the specifics of your policy. Someone else's policy may be completely different so it makes no difference what they think--it's YOUR policy you need to be sure of. Get on the phone now and call your agent and get your question answered properly--then let us know as we're interested.

    My agent is good and helpful, but I've got a very good friend halfway across the country who owns his own large agency and he can't insure me, but he gives me the inside scoop and guidance when I really want to know what's going on. The main thing he's told me is that unless it's specifically covered in your policy, IT'S NOT COVERED! Should be no surprise but you'd be amazaed at the number of people who assume things. Good luck, Will M.

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