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Insurance

Discussion in 'Business Fundamentals' started by ultimateinc, Feb 17, 2011.

  1. ultimateinc

    ultimateinc Senior Member
    Messages: 143

    Hey guys i have liability insurance on my landscape company. I started looking into tree work and my agent says my policy does not cover any tree work. We are getting so many calls for tree work and wondering if i should look into adding some tree insurance to my policy or starting a new policy for just tree work and if so, is it expensive ?
     
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    If you don't have any real experience in tree cutting your better of subbing it out and adding a little something on the estimate. And since you asked your policy has snowplowing listed on it. A lot of landscapers think they are covered for it and aren't,
     
  3. Mr.Markus

    Mr.Markus PlowSite Fanatic
    Messages: 5,169

    I'm gonna say ask your agent for a number.Subbing it exposes you and your insurance to liability as well and may not be worth it. Also read your policy wording... If it says "activities usual to Landscaping" and doesn't exclude treework specifically, it can be argued that you are covered. If it excludes 'treework', that term could be constude to mean planting,fertilizing,mulching trees. The best place for advice would be your agent, and shop around every couple of years.
     
  4. jklawn&Plow

    jklawn&Plow Senior Member
    Messages: 469

    I am not sure but If you hire a sub is it your responsibility to ask for the Certificate of Insurance .
     
  5. Mr.Markus

    Mr.Markus PlowSite Fanatic
    Messages: 5,169

    Definitely, as well as proof of workers comp. This does not imdemnify you of legal action as the presenter of the invoice.
     
  6. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I should clarify my post. If I get a call for tree cutting I refer it out to a tree company I work with. Better to past it along to someone I know because I get stuff from them. So all burden of insurance is on them.
     
  7. Mr.Markus

    Mr.Markus PlowSite Fanatic
    Messages: 5,169

    I think it's best not to try to be "Everything" to your customers. Most times refering specialty contractors from your contacts allows you to focus on what you do best, and you don't run into the nightmare of insuring a different host of services. Sometimes just being helpful is appreciated.
     
  8. South Seneca

    South Seneca Senior Member
    Messages: 474

    I agree Mr. Markus. He would be better off to get to know a reputable full service tree company that does quality work and refer the tree work to them. Maybe Ultimateinc can make a deal to chip the smaller limbs.

    I have a friend who is "a climber." He's the crazy guy that starts at the top of the tree and cuts one piece at a time in places the bucket truck can't reach for one reason or another. From him I know that this is very specialized and dangerous work that must be done by experienced professionals.
     
  9. ultimateinc

    ultimateinc Senior Member
    Messages: 143

    thanks guys. in the past i always subbed it out, than last year we started doing small stuff and just kept getting more & more calls. i thought it was a fluke and was only gonna go on a week or so , but seeing we got request all last year thought about looking into it this year & getting the proper insurance for it. Also helps one of my guys is experienced in tree work for 15 years. grandview thats a good point about snow removal i learned that my first year in business when i asked my agent how much coverage i had for snow removal & he tells me its not on my policy unless i tell him were snow plowing which was bs he knew we did. iv delt with some shaddy agents. like markus said shop around every couple years.
     
  10. Mr.Markus

    Mr.Markus PlowSite Fanatic
    Messages: 5,169

    See what you did now.....got me talking.:D

    Wind blew over a tree onto the drive.lol

    Feb  19 2011 001.jpg
     
  11. Plow Babe

    Plow Babe Senior Member
    Messages: 218

    So far it sounds like everyone is telling you don't do it.

    We briefly thought about getting into tree cutting. Steve has past experience, and the mountain pine beetle has decimated our forests, so there are lots of standing dead trees on private property that need to be taken down. I checked with my agent and our insurance company doesn't provide this kind of coverage. After looking into it further, we decided we weren't interested in doing it. However, there are lots of guys here that have gotten into it, especially since construction is at a standstill.

    If you're getting enough inquiries to make it worth your while, and you really want to add this to your business, then talk to you agent again and get the premium amounts. Sit down and figure out competent personnel together with the numbers and decide if you want to go for it.

    I say always be open to the possibility of new things - you could have a great new revenue stream. Just be smart and go in prepared and with your eyes open.
     
  12. South Seneca

    South Seneca Senior Member
    Messages: 474

    If you decide you want to do it, you'll need someone who is familiar with pricing these tree jobs. My friend who's in the business here says he gets calls all the time for people who think he should take down that tree that stands 50 feet and hangs over their house for $200. Not happening!

    You will also find yourself in the fire wood business at the same time.
     
  13. paponte

    paponte Senior Member
    Messages: 717

    While I don't agree with not being able to offer everything to a client, I do agree with it if you don't know what you are doing. We pay some hefty insurance payments every month, but have some high coverage. I feel it is absolutely necessary since we do everything from tree, excavating, demolition, snow, pesticide, and municipal work. Exposure is key also, the more exposure the more insurance. I would never take on a job I knew little about.