Insurance and Other Questions

[DT86]

Hello All!


I am wanting to get serious about bush hogging for others. Before something happens I'll later regret I'm wanting to get some insurance. What do I need to look into? General liability? Anything else?

Thanks,
Derek

 

[brin]

Look into a $5 Million Umbrella Policy....they are not that expensive...If $5 M is too much then less but at least have that as a back up....otherwise maybe call a farmer's oriented insurance company and get a commercial quote...Good luck with the venture...

 

[eddie48]

Call your local insurance agent and ask him/her what a small Business Owners Policy (BOP) would cost for that activity. It's similar to the insurance a landscaper would have. An umbrella policy won't cover anything not already covered on your underlying insurance policies (auto or homeowner's insurance, for instance).

 

[yellowdogsvc]

I think 5 million for someone starting out is a bit high. I have a 2 million policy for a mulching/clearing business.
Shop around. I insure all of my machines and attachments (inland marine), carry workman's comp, and general liability. I have only used insurance once to replace a window but you never know and it protects your customer as much as you.

It is refreshing to see someone ask. I know a lot of contractors and probably 80% carry NO insurance of any type. Some are tree climbers and have guys in the trees or on ladders and carry no insurance. That's crazy. Mowing isn't the most dangerous thing in the world but God forbid something gets ejected, a tractor rolls over on someone, or you start a fire or run over a gas line.. you will be glad you have it. Get insurance based on what you do and add a few services... in case you grow or get asked to do something you are comfortable with.

If you are healthy or young, look into disability insurance as well. I know that all adds up and you have to adjust your prices accordingly but being insured may separate you from the competition when it comes time to land a good contract.

Good luck and keep us updated.

 

[whistlepig]

Make sure the insurance covers the truck, trailer, and tractor while hauling to and from the job. Some insurance covers this and some doesn't.

 

[DT86]

I know that all adds up and you have to adjust your prices accordingly but being insured may separate you from the competition when it comes time to land a good contract.

Good luck and keep us updated.

That is the second reason I wanted it. I hope it will show some level of professionalism which should mean better job opportunities. The first reason being that I simply cannot afford to mess something up and be financially ruined.

I know several landscaping guys. Occasionally they get asked to do jobs that they simply aren't set up for or even care to do. I am hoping that they could occasionally throw a job or two my way and in return I would do the same.


I'm fairly young, 27, and think that I would eventually like to get into mulching if possible. But that would be a while off. I do know that nothing satisfies me as much as making weeds, brush and trees disappear. Also I hate working UNDER someone. I know you are still working FOR someone, but it's different.


As for the "Other Questions" portion of the thread... As far as business cards and advertizing, what has and has not worked out for you in the past?

 

[whistlepig]

That is the second reason I wanted it. I hope it will show some level of professionalism which should mean better job opportunities. The first reason being that I simply cannot afford to mess something up and be financially ruined.

I know several landscaping guys. Occasionally they get asked to do jobs that they simply aren't set up for or even care to do. I am hoping that they could occasionally throw a job or two my way and in return I would do the same.


I'm fairly young, 27, and think that I would eventually like to get into mulching if possible. But that would be a while off. I do know that nothing satisfies me as much as making weeds, brush and trees disappear. Also I hate working UNDER someone. I know you are still working FOR someone, but it's different.


As for the "Other Questions" portion of the thread... As far as business cards and advertizing, what has and has not worked out for you in the past?

I tried advertising and business cards. Word of mouth gave me the the most business. You have to be "on call" when needed for new clients and for the regular clients always be there when you said you would be. Regular clients don't want to be hassled by this stuff. All they want to know that is it will be done and a bill is mailed to them. They will become loyal. Even with asked for price increases due to fuel, etc., if reasonable. There was quite a demand for this kind of mowing when I was doing it. Far more than I could ever do. I think you are going into a worthwhile business.

 

[DT86]

There was quite a demand for this kind of mowing when I was doing it. Far more than I could ever do. I think you are going into a worthwhile business.

That is a good problem to have! The only things that might hold me back are the good ole boys that work for beer money and the fact that there seem to plenty of them. I have been fighting this my whole adult life. People that sell hay for less than it costs to produce are a prime example. They might know how to use a tractor but have failed to grasp the complexities of the calculator.

 

[DT86]

Call your local insurance agent and ask him/her what a small Business Owners Policy (BOP) would cost for that activity. It's similar to the insurance a landscaper would have. An umbrella policy won't cover anything not already covered on your underlying insurance policies (auto or homeowner's insurance, for instance).

Thanks! I just looked at your "credentials". :thumbsup:

 

[whistlepig]

That is a good problem to have! The only things that might hold me back are the good ole boys that work for beer money and the fact that there seem to plenty of them. I have been fighting this my whole adult life. People that sell hay for less than it costs to produce are a prime example. They might know how to use a tractor but have failed to grasp the complexities of the calculator.

If you live around a city it won't be a problem. Most of my mowing was vacant lots for realtors. If someone complains to the city about an overgrown lot the city will call the realtor. Mow the darn lot or big fines. Realtors don't want that kind of hassle. They want somebody dependable so that they are not bothered by this. There was a big need for that when I was doing this kind of mowing.