How much insurance do I need for just stump grinding?

[Haulinwood]

Pretty new to the forum, so please be patient. Looking at starting up a tree stump removal business. How much insurance should I cary for this? Not looking at bringing any trees down at this time, strictly just stump grinding. I will be using the Alpine Magnum I just ordered yesterday. So I will be a tread lightly no damage per say with heavy equipment.
Thanks for any and all advice.

 

[Dill]

1 million of liability is pretty much the standard. Especially if your going to work for any municipalities or commercial clients.

 

[Haulinwood]

Wow, more than I thought I was thinking $250,000. Again this is just for stump grinding.
Thanks for the information.

 

[Dill]

Might be different where you are. But I can count the number of commercial policies with under a 500k liability limit that I've sold on one hand. If you sub contract with another contractor, be it a GC, dirt crew or a tree guy they want your limits to equal theirs. Plus its not going to raise the price of the policy by much to go a million.

 

[Haulinwood]

Thanks Dill. Sound advice. Can not hurt to have a little more.
Thanks.

 

[ATH]

You could quickly push the limits of $250K if you hit an underground utility...

 

[beaver316]

Are you doing residential/comercial or both. Minimum i would get is 250k. In the past 2 weeks our stump grinding sub-contractor shattered a glass door(500) and then an a/c line(1100) I wouldn't get a million dollar policy, seems like over-kill

 

[Haulinwood]

ThanksBeaver. I will check in on all but I guess a little more will not hurt.
Thanks

 

[Burlhunter13]

Pretty new to the forum, so please be patient. Looking at starting up a tree stump removal business. How much insurance should I cary for this? Not looking at bringing any trees down at this time, strictly just stump grinding. I will be using the Alpine Magnum I just ordered yesterday. So I will be a tread lightly no damage per say with heavy equipment.
Thanks for any and all advice.

Hey Haulinwood! Just curious what county are you located in? I may be interested in some of the stump wood you come across. Send me a PM.

 

[Haulinwood]

Burlhunter, I am in Round Lake area, close to McHenry. Are you a wood turner? Shoot me what you are looking for, I am sure we will work something out.

 

[2treeornot2tree]

Get the millon dollar policy. Most policys have a min cost. I could get a 1 mil 2 million policy for the same prices as a $500,000 policy.

Something to think about. What happens if your grinding near a road and you throw a rock, and it hits the windshield of a car, and they swear, hit another car or tree head on and they die. You better bet your a## there family is going to sue you and $250,000 isnt much for a death lawsuit. If you dont have enough insurance, they then will come after your home, or whatever else you own.

 

[Haulinwood]

Thanks for the info 2treeornot.

 

[Doctorj]

My ins agent is having a hard time coming up with a good company. Are there some that I could point them to. What kind of price range for a million dollar policy for someone that does less than 10,000 dollars a year?

 

[Haulinwood]

I found a company, rather my wife did, that had no problem. I am getting 2 million for all and 1 million personal for $439.00 a year, or $489.00 a year.

 

[Dill]

Its a 1mil/2mil policy, meaning they will pay 1mil per occurrence and 2 million aggregate (or 2mil/year) and I usually tell people if you hit the second number in a year, you won't have insurance the next year. Thats a darn good rate, anything tree related is usually well north of 2k annually.

 

[forestryworks]

You definitely wanna get the 1mil policy. Anything less is for the lowball hacks who screw it up for the high quality working guys.

 

[Goose IBEW]

I found a company, rather my wife did, that had no problem. I am getting 2 million for all and 1 million personal for $439.00 a year, or $489.00 a year.

That' a heck of a deal. Is there any chance of passing the name of this company on to others?

 

[rtsims]

I use Red Shield Insurance Company and go through a local Agent who has access to alot of diff companies.
I get a great rate, pay $550.00/yr, not including my equipment, its insured through another company.
Coverage is:
2,000,000 General Aggregate
1,000,000 Personal and Advertising Injury Limit
1,000,000 Each Occurence Limit
100,000 Damage to Premises Rented/ any one premises
5,000 Medical Expense Limit/ per persons

Red Shield # 800-527-7397

 

[BillK]

For any of you landscapers or stump grinders - double check to be sure your policy does not have the XCU exclusion on it. (XCU=Explosion/Collapse/Underground Hazard)

I also agree with Dill - I don't even bother writing anything less than $1mm/$2mm limits any longer since the price difference is so small and it ususally creates issues for GCs.

 

[Haulinwood]

Pekin Ins.