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Residential/Commercial vs. Municipal Plowing

Discussion in 'Commercial Snow Removal' started by JohnsonLawn, Dec 13, 2006.

  1. JohnsonLawn

    JohnsonLawn Member
    Messages: 78

    I am a solo op LCO and plow for the town in the winter. My questions is, I have been thinking which would be a more profitable way to go with a 1 truck operation, plowing for the town @ $65.00 per hr. with my route being about a total of 2 miles and 3/4 of a mile from the house or start to take on residential driveways and a few parking lots or condos. I have been thinking that taking on driveways could add up quick, but you would spend more money and time in travel and more complains from customers. What have you guys found to be the better of the two
     
  2. tjlands

    tjlands Senior Member
    Messages: 575

    Working for yourself is always better. IMO

    How many hrs do you typically make in a storm?
     
  3. JohnsonLawn

    JohnsonLawn Member
    Messages: 78

    Have any trouble chasing people for your money. The town pays every 2 weeks with out fail.
     
  4. Snoflo

    Snoflo Member
    Messages: 57

    Well JohnsonLawn as I see it here are the issues.
    $65.00 Town pays you. Do they call you to plow? If so that is worry free rest and a call to work. Other very little sleep constant worry about suprise snowfall.
    $110.00-120.00 per hour on your own however now need a GL Policy for 2 mil average minimum $1,500.00 - $2,000.00 annually dpending on gross revenue, Workers Comp average $900.00 annually even if no employees most property management companies who own condos and apartments require this. Also high liability on you and your company as far as slip and falls.

    just a few thoughts. there are many more but I am starting to stress myself out LOL
     
  5. JohnsonLawn

    JohnsonLawn Member
    Messages: 78

    Yes the town calls out at a 3" trigger. I have looked in the the insurances required and they are not cheap, plus my commercial liability for lawn care does not cover snow removal, so this is an additional $2000.00 for 2 million policy and it is to be paid in full up front. Sounds like a big gamble is it doesn't snow
     
  6. Jay brown

    Jay brown PlowSite.com Addict
    Messages: 1,783

    have a ?.. why does the town hire contractors to plow? here our town has a street maintaince dept that does all of the plowing, snow removal, and ice control. they also fix pot holes afterwards. they just use the same trucks and employees that they already have anyway. they do a very good job.
     
  7. JohnsonLawn

    JohnsonLawn Member
    Messages: 78

    Our town has a fleet of big trucks for plowing and sanding the larger, wider roads, but they hire alot of sub contractors to plow neighborhoods as they don't have enough equipment to keep up.
     
  8. Jay brown

    Jay brown PlowSite.com Addict
    Messages: 1,783

    must be for bigger towns? we are a town of 10,000. i can see where a big town would need help or the whole city might be a disaster area in the morning
     
  9. SnowGuy73

    SnowGuy73 PlowSite Fanatic
    Messages: 24,868

    Stick with doing the town roads and pick up a few driveways on the side.
     
  10. Antnee77

    Antnee77 PlowSite.com Addict
    from RI
    Messages: 1,056

    You're a lucky one. In colder climates and larger towns and cities, they do a lot of work with their own trucks and crews, but are still forced to sub out much of their work to subcontractors. Around here, you could plow for just about any city/town or even the state if you want to. There's always work there, as long as the snow falls. :angry:
     
  11. tjlands

    tjlands Senior Member
    Messages: 575

    Cant believe that your township lets you plow without insurance.
    We do work for townships in NJ in big storms and you are required to have snow plowing insurance. God forbid you do something by mistake do you really think the township is gonna cover you.:nono:
     
  12. Oshkosh

    Oshkosh PlowSite.com Addict
    Messages: 1,655

    Plowing for the towns and state you do need insurance..

    In Massachusetts at least when I had my equipment on the State you needed 300,000 liability, I don't know if that has gone up or not??? The same with the local towns/cities that I had gear on.
     
  13. Winter Land Man

    Winter Land Man Senior Member
    Messages: 723

    I'm pretty sure Acton, MA or Concord, MA doesn't need insurance..... I forgot which town. But one of them.
     
  14. tjlands

    tjlands Senior Member
    Messages: 575

    That wasn't my point, you want insurance. If you are plowing and get in an accident your own insurance company will not cover you unless you have plowing listed on that truck.
    Doesn't matter if you live in NH, Me, NJ or whatever. Cover yourself or dont take the chance.
     
  15. JohnsonLawn

    JohnsonLawn Member
    Messages: 78

    My town requires 100,000/300,000 liablity, but that is what I carry on my truck anyway so there is no added expense.
     
  16. JohnsonLawn

    JohnsonLawn Member
    Messages: 78

    This policy is also a commercial vehicle policy and my agent said plowing town roads was covered. The problem with commercial properties is that everyone is sue happy and the insurance rates and liabilty go threw the roof
     
  17. tjlands

    tjlands Senior Member
    Messages: 575

    Just be careful, I have seen to many horror stories of guys that thought they were covered for plowing.
     
  18. JohnsonLawn

    JohnsonLawn Member
    Messages: 78

    I appreciate your concern and I will double check with my insurance agent on Monday to make sure everything is covered. I still figure there would be more of a liabilty issue plowing for condos and parking lots