I’ve had several people contact me about what insurance is needed for the lawn business. Here are some explanations.
General Liability- for damage to someone or their property. Government and large businesses require liability insurance of 1 million coverage.
Health- If something happens to you while working, you need to make sure your health insurance will cover you if you can not work.
Workers compensation- Compensates employees for work related injuries and illnesses. Some states don’t require this type of insurance. Where I live (TN), workers comp is not required for less than 5 employees. Cost of workers comp varies by state.
Business Auto- covers company vehicles.
Cost depends on:
* Type
* Size
* Number of vehicles
* How far it’s driven everyday
* What it’s hauling
Business Owners Policy(BOP)- Package insurance which includes:
* General Liability
* Business Interruption Insurance- replaces business income andpays expenses such as equipment, office rent, fire, theft, or other loses. Cost $300- $400 a year.
Surety Bond -Covers the hiring contractors should you default on the job. Occasionally, this may be required for commercial jobs. Once you become established they may waive the bond.
Surety bonds are generally not needed for residential accounts, unless you are applying pesticides or herbicides. Ask your insurance agent.
Unless you have expensive equipment, I would think about not insuring the equipment, but to not insure you must always lock equipment with locks that are fast to open and close. I use the locks with the 3 numbers(Masterlock) or key locks, never do combination. Takes too long to open.
Before I started locking my equipment down, I had equipment stolen from my trailer. Later on, my trailer was stolen even being locked. Lawn equipment is stolen a lot. More than you probably think. How long do you think it takes to drive past a truck and steal a $500 blower? About 5 seconds. Thats a $100 a second.
When looking for insurance there are 2 classifications.
* Insurance agents- Usually represent 1 company
* Insurance brokers- Represent many different companies.
I like working with brokers since they are on your side and shop several companies for quality and price. Always get 4 or 5 quotes because prices can vary greatly.
Best of Luck!
Kevin Whiteside is the owner and editor of http://www.LawnForum.com Monthly, an online newsletter and website for lawn and landscape professionals. Get a FREE subscription here LawnForum@aweber.com
He is also the author of “Turn High Grass Into Cold Cash- How to Start the Ultimate Lawn Business” http://www.GrassToCash.com
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Kevin Whiteside