My friend and I are thinking about starting up a small excavation business. We are both auto technicians full time and are wanting to start doing this on the side and see where it goes. Right now we have a compact tractor with a few attachments. We are going to buy a Takeuchi Tl150, a dump trailer, a deckover for the Takeuchi, and depending on future business a mini ex. We are aiming at homeowners and small contractors. Does anyone have any recomendations for insurance? We have been doing cash jobs for a while but we want to be legal and protected. We allready have a business for auto and truck repair. It is a LLC so we can operate a excavation company under it by using a DBA. Any other questions, comments, or suggestions would be greatly appriciated. By the way we are located in Northern Ohio. Thanks, Brian
shop it around and around. Once one agent quotes you from company ABC that is the only quote from that company you can get. Ask for different option and look how payments are structured and what premiums are based on like gross receipts or payroll. Minimum charge per year will be? Limits of coverage also.
one thing I will say is whatever you choose, stay on top of it and always keep your eyes open if a better deal comes by. If you dont stay on top of it, it will just keep going up some how. Ive only been in business for 2 years and I got a bill the other week for 3,100$ and I have zero claims. I dug into it and found out they messed up and its supposed to be broken up into payments. Insurance agents, payroll specialists, and bankers will all try to lead you to believe that they are important, after some time you realize they are all expendable and a dime a dozen, unless of course they actually do something for you that makes them worthwhile.
i'm aware state ins. laws vary......here anyway, and i know a lot of states, you stick a bucket in the ground, and you need "XCU"....explosion/collapse/underground....ask your agent
Be careful operating the excavating through the auto repair LLC. Make sure the LLC has the right wording/name to encompass excavating. Ask an attorney.
tnwestes, What do you mean be carefull with the name? The LLC is called My Mechanic. We will operate under a DBA name, not know at this time! lol. I will ask our attorney because I have never thought about it. Here is what I have found out about a LLC and DBA The legal name of a business is the name of the person or entity that owns a business. If you are the sole owner of your business, its legal name is your full name. If your business is a partnership, the legal name is the name given in your partnership agreement or the last names of the partners. For limited liability corporations (LLCs) and corporations, the business' legal name is the one that was registered with the state government. Your business' legal name is required on all government forms and applications, including your application for employer tax IDs, licenses and permits. However, if you want to open a shop or sell your products under a different name, then you may have to file a "fictitious name" registration form with your government agency. A fictitious name (or assumed name, trade name, or DBA name, short for "doing business as") is a business name that is different than your personal name, the names of your partners or the officially registered name of your LLC or corporation. For example, let's say Mary Smith is a sole proprietor of a catering company she runs out of her house. Mary wants to name her business Seaside Catering instead using her business' legal name, Mary Smith. In order to use Seaside Catering, Mary will need to register that name as a fictitious business name with a government agency. Which government agency, depends on where she lives. In some states, fictitious names are registered with the state government; in others, you register fictitious names with the county clerk's office; and in others, there are no laws requiring businesses to register a fictitious business names. You guys all have very good points and ideas, alot of which I havent thought of. For insurance do I just call my local State Farm, Allstate, etc? I have been looking online and cant find out what insurance would be required in OH. Thanks, and keep the info and suggestions comming! Brian
You will need Workerscompensation and General Liability. I think what was being said above you can't use your auto mechanics business insurance to cover you in excavating. You need to tell the agent the type of work you are doing as there are different risk factors and cost involved with each type of business. then you have insurance for the equipment if you are going to insure that for theft or damages.
Insurance Ill try to make it short. You have got to have Workers Comp and General Liability Ins, for the work you are doing. You may or may not be able to use what you have, but make sure you are covered. You maybe thinking, well its just me and my partner, why do we need WC ins. Take it from someone that learned this lesson the hard way. I had a guy that needed to make a few bucks, to buy food for his family. I felt sorry for him and let him help me a weekend. He fell and got hurt and without my Ins, I would have to come out of pocket about $30,000. It still cost me big bucks, trying to help someone. If anyone is on your job and you are paying them to help you, he is an employee. Even if you just paid him with, trading, bartering, bougth his lunch, any compensation. If he gets hurt on your job, you better have Ins. Make sure you have work lined up, before spending all this money on equipment. You cant beat the Takeuchi skidsteer, they are tough, its hard to kill them. List in detail what kind of work you hope to do. If you are cleaning clearing lots, how are you going to get rid of the trash? Are you going to have to rent a dump truck to haul off the trash? If he gets hurt on your job, you maybe liable As others has said, make sure you have the correct Ins. to cover what you are doing. You maybe get away with it for a while, but it will catch up with you. Most General contractors, require proof of insurance, before they will hire you. Some home owners, ask for this also Good Luck, its hard to start a new business in this economy
Your liability insurance for the ''excavating'' classification is very expensive.That classification encompasses digging up Main St. USA,where there are gas electric,water,fiberoptics,sewer,etc. lines.In other words--high risk work.You probably aren't going to be doing this at first or maybe not at all,or maybe on a very limited basis.The least expensive classification is septic work--where usually you're either working in virgin land or if doing a repair,you still usually don't have any risky digging.Now,from an insurance view point,drainage work,clearing,grading,can all come under either this class or a similiarly low risk class.Any seasoned insurance agent who's honest and ethical can steer you right here.Just stay away from using the E word too much when you're talking to an agent.I would look into Ohio's laws on WC to really see if you have to have it.In NY,there are parameters where you don't need it if you have either just yourself or even 1 employee{which could be yourself if you incorporate].I haven't needed it in 36 years now,if and when it is required from either a GC or a gov't entity,I get a waiver,all done electronically now. Good luck.