where to get insurance from and how much

[j.a.lawnervces]

i am a one man operation and am looking at getting insurance. i have a 2010 doge ram bad boy 60 inch echo hand equitment. as of rate now it is just me, I would like to know what's the right kind of insurance and how much i need to get, and some of the insurance company's you use. i am not a LLC i will be getting my dba and business lic here this week. any help would greatly appreciate it I live and work in TN near Fort Cambell KY

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Last edited by j.a.lawnervces; 02-24-2012 at 03:49 PM. Reason: put where i live

[dpld]

Lawn care business tips

Originally Posted by j.a.lawnervces i am a one man operation and am looking at getting insurance. i have a 2010 doge ram bad boy 60 inch echo hand equitment. as of rate now it is just me, I would like to know what's the right kind of insurance and how much i need to get, and some of the insurance company's you use. i am not a LLC i will be getting my dba and business lic here this week. any help would greatly appreciate it I live and work in TN near Fort Cambell KY commerical auto and general liabillity is all you need. you can get workers comp for yourself but for some odd reason it cost more to insure the owner then the employee, go figure. in my state workers comp is only required by law if you hire people.

[j.a.lawnervces]

ok what company do you use for insurance?

[HAMPTON ROADS LAWN CARE]

A few questions for you???


Why are you starting as a DBA?? Im sure it is not that expensive to start as a LLC or Corp in your state just go to your states corporation commission website and im sure you can do it on there. Here in VA it cost me $75 to register with the state and then you are covered and you can go on the irs website or call and get your EIN # for free (tax id).

Secondly for insurance I went through USAA which directed me to Hartford (I think) but I have $1m in general liability and I just added a commercial rider to my car insurance that I have through them because for commercial insurance they wanted almost $400 a month and so they asked do you have employees and I said no so thats when they recommended me do that to save a ton and so my policy with the $1m and $6k for my equipment and the commercial rider to my car insurance was almost $300 down and then 3 more payments of $246 so a total for the year is just over $1k

Hope this helps!!!!


Also i have a 2009 GMC Dually and all brand-new everything and all echo so thats where I have come up with the 6K figure for the property insurance!

[j.a.lawnervces]

well here in tn the mininum is $300 to start a llc..To get a business lic for county and city is $30 for both with being a S.P they do not reserve your business name only for a llc or a corporation will they reserve your name. since i do not have he cash to pay for a llc rate now i was going to get 1mil for vehicle insurance and 12k for trailer and equit and 1mil in liability.

[Hedgemaster]

Some things vary by state.

Here in PA, I do not need commercial insurance on my vehicle unless I have it registered/titled in my business name and/or I have any employees who will drive it.
My standard auto policy has remained in effect and unchanged - no rate increase for use in my business.
If I wish, I can get extra coverage to cover the trailer/equipment, as that isn't covered under the auto policy.


Liability insurance varies as well. Here in PA, the minimum required coverage is $500,000. Most people get 1 million since the cost is literally only a few dollars more.

Get out your phone book and make some calls. Explain what you are looking for and see what they have to say. Some companies are more familiar than others when it comes to insuring landscapers. When I called around, some simply gave me a price, while others asked me very specific questions about my business. They asked because they wanted to be sure they were offering the coverage I NEEDED and not covering me for things that I wasn't doing - like felling trees.

I ended up using the Erie agent that we have our homeowner's insurance with. The price was about $50 more than my lowest quote, but the low quote was from some place I've never heard of and they also asked no questions - just gave me a quote. In talking to my agent, I realized that she has years of experience dealing with lawn care operators. I felt comfortable with what she was offering.

I think I pay $450/year for 1 million business liability.

[HAMPTON ROADS LAWN CARE]

Originally Posted by j.a.lawnervces

well here in tn the mininum is $300 to start a llc..To get a business lic for county and city is $30 for both with being a S.P they do not reserve your business name only for a llc or a corporation will they reserve your name. since i do not have he cash to pay for a llc rate now i was going to get 1mil for vehicle insurance and 12k for trailer and equit and 1mil in liability.

Look @ doing an S-Corp thats the way to go not a LLC imo........and yeah see if your insurance company will allow you to use it for commercial use and personal (if need be) because commercial auto seems to be wayyyyy 2 expensive so thats why i say talk to them and see if they will cover you commercially with your existing policy.

The equipment coverage is optional but needed just in case some clown wants to steal your trailer and gear! But yeah thats why you go corp or llc to get your name because if not you could have a competitor go and file with the state and you are S.O.L. then you will need to change your name.

But anyway good luck this will be my first season as well but I have started and ran a few other successful businesses so all of this has been like second nature for me just ready to get started!!!

[dpld]

Originally Posted by HAMPTON ROADS LAWN CARE

Look @ doing an S-Corp thats the way to go not a LLC imo........and yeah see if your insurance company will allow you to use it for commercial use and personal (if need be) because commercial auto seems to be wayyyyy 2 expensive so thats why i say talk to them and see if they will cover you commercially with your existing policy.

The equipment coverage is optional but needed just in case some clown wants to steal your trailer and gear! But yeah thats why you go corp or llc to get your name because if not you could have a competitor go and file with the state and you are S.O.L. then you will need to change your name.

But anyway good luck this will be my first season as well but I have started and ran a few other successful businesses so all of this has been like second nature for me just ready to get started!!!

LLC is the way to go Screw the S-corp. ask any accountant and they will tell you the same thing for a small business.

[Fireman Gus]

In Oklahoma the liability insurance for lawn business is very minimal. I had $100,000 for $300 with an Independent agent. Now we are with USAA, since my son is ex-military, and we have 1 Million liability for $900 per year. Includes theft, and accident.

[HAMPTON ROADS LAWN CARE]

Originally Posted by dpld

LLC is the way to go Screw the S-corp. ask any accountant and they will tell you the same thing for a small business.

Thats funny that you say this but this is my 3rd business I have started and all S-Corps. But the big problem with an LLC is that you have to pay tax on ALL of your profits. I would rather pay tax on my NET not my Gross.

And to answer your question is that my 3 different accountants and my 2 different lawyers I have had they all have suggested S-corp due to the taxation and the covering of my personal assets.

I know an LLC covers your personal assets as well but an S-Corp is a better deal for taxation.......IMO!!!!!