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  1. #1
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    Default Commercial Insurance for part time business

    Hi. I was planning to buy a tractor and some dirt tools and recover part of the costs by doing part time work.

    Called my insurance company and they said with a $1M liability, 3 part time employees (my kids) and NO SNOWPLOWING, it would cost $100 a month..... It would cover the theft/loss of my tractor also.

    WOW, that sounds high. Any of you found cheaper????

    Thanks.

  2. #2
    Gold Member
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    Oct 2002
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    317
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    Middle Tennessee
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    John Deere 4410

    Default Re: Commercial Insurance for part time business

    I second that question. Right now I have mine on my home owner's insurance and just use it at home.

  3. #3
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    Default Re: Commercial Insurance for part time business

    RonR,
    I'm in the same boat. What about placing a liability bond on yourself? I'm not sure if that would help as far as theft, but should be a safe way of insuring against damage to a customers property.

  4. #4
    Gold Member
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    Apr 2001
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    Southeastern Mass
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    New Holland 1920

    Default Re: Commercial Insurance for part time business

    Ron, I found landscaping insurance was $350-400 for 1 million liability. This didn't include theft/loss of tractor nor any employees. It also only allowed excavations down to 3 foot deep. The quote for backhoe insurance ( NH 1920 w/ 8 1/2 foot BH ) was between $1100-1500 for 1 million liability. You may want to ask over at lawnsite.com ( it's a landscape forum). Hope this helps, Bill C

  5. #5
    Super Member
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    Apr 2000
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    5,673
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    Cedartown, Ga and N. Ga mountains
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    1998 Kubota B21, 2005 Kubota L39

    Default Re: Commercial Insurance for part time business

    I would look for a landscaping company insurance policy. I don't have one but my understanding is that as long as you are not using a backhoe this is the way to go. It can cover your tractor also. With a backhoe, utility issues, you have to go contractor insurance and your quote sounds about right.

    MarkV

  6. #6
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    Default Re: Commercial Insurance for part time business

    James
    Its not damage to the property you have to worry about its damage to another person that will cost you the big bucks. Throw a rock with a mower or snow blower and hit someone or have some child slip behind your tractor - that type of thing. It is terrible to think about but it happens. Your bond wont begin to cover your exposure to this type of accident. You need liablity insurance to protect yourself. Mike

  7. #7

    Join Date
    Dec 2001
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    121
    Location
    Caledonia, MI
    Tractor
    TC40D w/ss

    Default Re: Commercial Insurance for part time business

    billfires
    I found that to be about the same for me too. So either free bh work (for friends) or the first paying customer is going to get hammered. [img]/forums/images/graemlins/grin.gif[/img]

    Nick

  8. #8
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    Default Re: Commercial Insurance for part time business

    I've had a couple of businesses, inside and outside, adn that sounds about right for liability insurance. They don't care if it's part time or full time - they're insuring you for full time, because they figure you could go full time and they can't monitor you. I ran into a similar problem with my truck - it was a pickup making 1 or 2 deliveries per day, but I paid the same rate as a larger truck making deliveries 8 hours a day. Once they heard the phrase "delivery in a residential neighborhood", that triggered the rate.

    Also, check your state's rules for workman's comp insurance. Here, if I don't need a contractor's license, I can have up to 3 full/part time employees without WC. If I have a contractor's license, or am working on job sites (like new construction) where the contractor requires it, I have to have WC on every employee (I can exempt myself). I had 1 full time and 1 part time employee working on such jobsites, and my WC bill was over $4K per year.

    My total for liability, truck, WC and additional insurance we had because I dispensed propane at my store was about $10K per year. Retail store, some outside work, some deliveries and 3 FT/1 PT people including me. Add in homeowner's, liability and fire on the store building we own in our own name, regular car insurance and outrageous health insurance for my wife and I because we weren't big enough to form a group. and a personal umbrella liability policy to cover all the exposure, and my insurance bill was about $25K per year. I closed the retail store, got rid of the propane, cut way back on the emplyees and the business, and got my total bill down to about $15K/year.

    I never had a claim. I don't much like insurance companies.

  9. #9
    Elite Member Gatorboy's Avatar
    Join Date
    Aug 2001
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    Bel Air, MD
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    Kubota M8950, Bobcat 873 SSL & Kubota ZD-331

    Default Re: Commercial Insurance for part time business

    I got Business insurance (even though I don't have a business) so that if any of my equipment out on my property -- Tractor, Bobcat, trailer, etc. -- gets vandalized or stolen would be covered. I am paying $118/month for my policy. So, to me, your policy doesn't seem high to me.

  10. #10
    Elite Member
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    Janesville, Wisconsin
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    None -yet. Until then FunBuggy (EZ-Go) will have to do!

    Default Re: Commercial Insurance for part time business

    </font><font color="blue" class="small">( It also only allowed excavations down to 3 foot deep. The quote for backhoe insurance ( NH 1920 w/ 8 1/2 foot BH ) was between $1100-1500 for 1 million liability )</font>

    Hi Bill! [img]/forums/images/graemlins/smile.gif[/img]

    You mentioned that the landscape insurance is only good for excavations down to 3 feet deep. Anything deeper, such as work being done with a BH would be considered "contractor" work and would cost more.

    I've heard this before, and I realize that it might be somewhat different in different parts of the country. But what about using a post hole digger? Wouldn't that trigger the need for contractor's insurance since many times you'd be going deeper than 3 feet for a post hole?

    I was just wondering, because I'd always heard about the BH, but no one ever seems to mention the post hole diggers.

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