$1,000,000 insurance (or more) in advertising

[M.D. Vaden]

This year and others, when I've been to the yellow pages or some online directories, I noticed that some companies list not only that they are bonded and insured, but that the liability insurance is $1,000,000.

It's in their yellow page ads, in directories and other advertisements.

Do you think that is a worthwhile adventure if you have that kind of coverage?

Does it makes sense to point out the level of coverage as long as you are paying for it?

Do you feel it ads to an advertisement?

 

[jimmyq]

I thought that 1 million was the base amount, they are advertising that they have the minimum insurance? around here some cities suggest 5 million is the base amount to look for.

 

[M.D. Vaden]

Interesting.

I've only seen one million in a phone book ad. Fairly certain I have not seen two million, but I had to think for a moment.

For our state, Oregon, the license board requires about $300,000 minimum for a state license. Our city requires one million. Landscapers need $100,000 minimum for a state landscape contractor license.

 

[treeseer]

Do you think that is a worthwhile adventure if you have that kind of coverage?

Does it makes sense to point out the level of coverage as long as you are paying for it?

Do you feel it ads to an advertisement?

Yes, yes and yes.

Higher coverage doesn't cost all that much more, and it does sound good.

 

[skwerl]

Around here $300K is the minimum required in order to get an occupational license. Some large corps and municipalities require $1M coverage in order to bid their work.

With housing values rising so much in the last 5 years, I may consider raising my coverage. 5 years ago it was rare for me to work for a customer whose house was worth more than $300K. If anybody questioned my coverage, I simply pointed out the fact that my coverage was higher than their house value and I doubted I could completely total their house even if I tried. These days a $300K house is pretty much a typical upper middle class house, time to up my coverage to $500K or so.

 

[Newfie]

Playing devil's advocate, I think it screams "hire me and sue me."

 

[Mike Barcaskey]

get the insurance applicable to your level of work. no one around my area would need one million dollars of liability coverage, it's overkill
IMO, putting in your ad that you are insured is as good, if you dont want to put the dollar amount

 

[Redbull]

Playing devil's advocate, I think it screams "hire me and sue me."

I agree with Newfie here. I don't advertise my insurance and only a very small percentage of people even ask. When they do ask, they don't ask how much. If they did, that would raise a red flag with me. If they want a certificate, my ins. company will mail them one with the amount of coverage on the certificate. Just my .02

 

[bottlefed89]

I've had several contracts that had it spelled out that contractors have a minimum of $1mil coverage. Also, what does being bonded do for a tree company??

 

[John Paul Sanborn]

I've gone with 1 million for the past 15 years and put it in the yp. It's a selling point to some people but others seem oblivious. Seeing what so many law suits go for these days 1 mil doesn't seem hardly enough.

What Dan said. For those who are concerned it will draw them too you. You also need obe covered wll for personal injury, Say the "conehead" runs through your cordon, the drp totas the car and puts 3 people in the hopital. You didnot have a fagman, or a road closure permit so you are found fully liable.....

However unlikely, it's not a far fetched scenario

 

[skwerl]

Also, what does being bonded do for a tree company??

Absolutely nothing. A 'bond' refers to a Completion Bond. The most common use of this type of policy is in home construction or remodeling. A contractor is hired for a $50K addition on your house. He asks for a $20K up-front deposit for materials. The job will take 2 months to finish. You insist on a Completion Bond so that if he disappears halfway through the job then the bond will pay to have the job completed.

This is typically not necessary in treework. SOP is to collect for the job once it's completed. If you quit halfway through a job, then the customer is not out of a deposit. The only people who ask for a bond from the tree guy are people who listen to the 'Consumer Advocate' on the 5 o'clock news and take every word as gospel. They have no idea what they are asking for.

 

[bottlefed89]

I didn't think a bond had anything to do with us, but I see it advertised, and have been asked....

 

[Chronic1]

I carry 2 million. Out of about 200 jobs I've only had two people ask. One was a property manager. LOL.

In my opinion, here in Colorado...the average Joe isn't savvy enough to know he or she should even be concerned about liability insurance in regards to tree care. In most places here in the city though...the average price for a house is 750 thousand.

 

[Mr_Brushcutter]

Over here the minium for the landscaping/arb sector is £5million ($7,500,000),i think theres 7 million and 10 million avaiable too. We just have that we are fully insured on our adds.

Personly although we have never clamed on insurance i think we should up it to 7 million just since were we work theres a lot of money.

 

[sotc]

in the state of oregon you have to have a 10,000 doller bond to do tree work. your contractors liscense isnt valid till you have a bond with the contractors board as the beneficiary and in their hands. that way if you screw an employee or damage something and refuse to pay the ccb can pay it out of your bond. then the bond company chases you down to pay them back!

 

[Diesel JD]

Skwerl, is 300K the required limit for a contractor's license in FL or is it specific to your area. I haven't checked into what Gainesville requires yet.

 

[skwerl]

JD, in Florida your occupational license is issued by the County. The county will ask for proof of insurance before issuing an occupational license. If your listed address is within a city limits, then you may need a city occupational license in order to get your county license.

Therefore your order of errands will be:
1) Call your county occupational license board to confirm the amount of insurance required for your county.
2) Get your business liability insurance.
3) Get your city license if you are within a city limits (if not, skip this).
4) Get your county occupational license.

5) NOW you are a legal business and can deal with WC coverage for employees, etc.

 

[Diesel JD]

Thanks for the info Brian. I do appreciate it. At this point it is strictly hypothetical as I have a lot yet to learn before I'm a contributor and not part of the problem. But it's good to know how FL handles this. I do know Gainesville requires an occupational license even for home based businesses, regardless of their nature. Have a good one,
J.D.

 

[Big A]

Over here the minium for the landscaping/arb sector is £5million ($7,500,000),i think theres 7 million and 10 million avaiable too. We just have that we are fully insured on our adds.

Personly although we have never clamed on insurance i think we should up it to 7 million just since were we work theres a lot of money.

Its only the councils, large contractors who require 5million cover,(or above) over here. If your reckless you dont need ANY liability cover, its Not required by law!!! God help anyone who aint got it when the s:censored: t hits the fan tho'!! Householders (IMO) should always ask for proof of cover, but nine times out of ten they dont even want to see it. I insist that they read it anyway as Ive paid out a small fortune for their piece of mind. By the way you can get arb cover for a million here in the UK.

 

[daveyclimber]

I carry 2 million. Out of about 200 jobs I've only had two people ask. One was a property manager. LOL.

In my opinion, here in Colorado...the average Joe isn't savvy enough to know he or she should even be concerned about liability insurance in regards to tree care. In most places here in the city though...the average price for a house is 750 thousand.

What might someone pay for this amount of coverage ?