Lawn Care Insurance

January 16th, 2012 → 4:09 pm @ Lawn Care Business Expert // No Comments

Lawn care insurance is important just like life insurance and health insurance.  It protects you and your family when something goes bad wrong.  Is necessary?  Well, it is not necessary but highly recommended.  This article is intended to tell you why it is a good idea to have lawn care insurance and how much to buy.

First, as already stated, insurance is about protection.  And that is what it does.  If you run a mower into someone’s Mercedes (let’s hope not), the insurance will cover the cost.

Second, some commercial properties will not allow you to bid without proof of commercial liability insurance.  Having an insurance policy will open you up to these accounts.

Hopefully, you will are convinced that if you are cutting more than a few lawns, liability insurance is a good idea.  If not, then don’t mess up.  If so, then here is what to look for in your insurance policy.

When you contact your insurance company, tell them that you are interesting in a commercial liability policy for your lawn business.  Unless you are faithful to one insurance company (I’m not), you may want to call several companies to compare prices.

A good amount to tell them is a 1 million dollar policy.  To some of you this may seem like overkill but the price difference between a $500,000 policy and $1,000,000 policy is probably minimal.  Some commercial properties will require a $1,000,000 minimum for their lawn service.

A $1,000,000 policy should run about $600 per year.  Some insurance companies will want to audit you at the end of the year to see if you have any employees.  If so, you may have to pay extra to cover your employees as well.  The insurance is usually price on “exposure” meaning how many people are working that need insurance coverage.

It is also important not let the insurance guy sell you a bunch of upgrades that you don’t need.  You can buy insurance for your commercial mowers which are expensive but I wouldn’t get insurance on my trimmers and blowers.  It typically is just not worth paying insurance on equipment unless it is worth a significant amount of money.

My final tip is something I learned the hard way.  My first year in business, I may three small claims all for only a few hundred bucks.  My thought was that my insurance had no deductible and I might as well use it.  I learned very quickly that insurance is for major accidents.  If it is less than $500, pay for it out of your pocket.  My insurance more than doubled the next year.  Don’t claim small accidents like a broken glass.  Pay for it and you will most likely come out cheaper.

I hope this helps you in the area of lawn care insurance.

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