Landscaping Insurance

[screamin400]

I ended up going with a 2 million dollar policy. It was not cheap here in NY.

 

[Fallon]

A LLC is not a replacement for proper insurance. If you don't do everything perfectly they can pierce the LLC & come after you. I have a general $1m liabity policy & run as a LLC. Belt & suspenders with insurance as my first line of defence & folding my LLC as a last line.

My policy doesn't cover any employees. I'd have to check the details, but similar numbers as noted above. Runs $800 or something per year here in Colorado for a landscaping policy. One big issue is i'm not covered for digging, so I don't do that work. I can do post holes & sprinklers, but not drenching or any significant grading. A policy that covers digging is about 10x the cost.

 

[daugen]

Good point Fallon about LLC.
Screamin, I'm a retired insurance agent and underwriter, think I might be able to help you.
What is quoted to you is standard Contractor General Liability coverage, protecting you from legal liability if you damage someone's property or hurt someone in the course of your business.

Two huge factors for insurance. The first is if you have a backhoe. If you do, you MUST declare it and make sure you are covered for any form of excavation. And never, never never dig before you call. Sounds like common sense, but.....
And you will need to do many thousands of dollars of excavating work before you break even on profit. I have no idea if you need/use an excavator/backhoe in your driveway work. If you stay "on top" much less liability.

The second is workers compensation. This could add ten percent on to your payroll, not quite like providing health insurance benefits...but landscaping WC is expensive. It's a rate per 100/1000 of payroll. Many guys try to run bare, and if their helper is crippled, they are legally on the hook for life for that expense. It's a way to lose your house and everything else. If you work by yourself, fine. But once you hire a helper, be very careful. Oral agreements disappear into smoke when folks get hurt and spouses start calling lawyers.

A $500K primary liability policy topped with a $1M umbrella policy would be a good way to go.

 

[screamin400]

Good point Fallon about LLC.
Screamin, I'm a retired insurance agent and underwriter, think I might be able to help you.
What is quoted to you is standard Contractor General Liability coverage, protecting you from legal liability if you damage someone's property or hurt someone in the course of your business.

Two huge factors for insurance. The first is if you have a backhoe. If you do, you MUST declare it and make sure you are covered for any form of excavation. And never, never never dig before you call. Sounds like common sense, but.....
And you will need to do many thousands of dollars of excavating work before you break even on profit. I have no idea if you need/use an excavator/backhoe in your driveway work. If you stay "on top" much less liability.

The second is workers compensation. This could add ten percent on to your payroll, not quite like providing health insurance benefits...but landscaping WC is expensive. It's a rate per 100/1000 of payroll. Many guys try to run bare, and if their helper is crippled, they are legally on the hook for life for that expense. It's a way to lose your house and everything else. If you work by yourself, fine. But once you hire a helper, be very careful. Oral agreements disappear into smoke when folks get hurt and spouses start calling lawyers.

A $500K primary liability policy topped with a $1M umbrella policy would be a good way to go.

No Hoe no employees. I am a one man show. Thanks for the input.

 

[daugen]

No Hoe no employees. I am a one man show. Thanks for the input.

then you are fine. Ask your agent, who you like and trust (good!) if there are any exclusions on the liability policy you need to worry about.
Always good to know what the fine print taketh away after the big print above sucks you in...

It used to be you could get one of these basic policies for 300 bucks. Then it went to 500 minimum. Would not surprise me minimum is now over a grand. Unless you are a big operator and can get scheduled/experience rated credits, unlikely to be a big difference in price between one company and another. But if one insurer has a 500 min premium and the other has a 1000, for a small operator, that's a big deal.