Starting a new business. Land clearing and mulching utilizing a horizontal grinder, cat 320f excavator, and compact track loader with mulcher head and brushcutter. I am getting some quotes for insurance and checking on getting bonded. I am new to owning a business. I am needing to get a bid together for a potential contract, and my monthly liablity insurance/bond quote isnt in yet. Can i get a ball park range of pricing from any similar type of businesses. My machines will be mostly rental, one employee, and machine insurance will be purchased through rental company. I had guessed 2000-3000/mo. For 1 million in liability.
From previous industries I have been in $2k per month will buy you a lot of liability insurance. I recently had a garagekeepers quote of $300 per month for 250k. A million was not even double that. As for bonding, I'd be surprised if they will give it. You will likely need to put up your personal assets. Even at that bonding a new business is hard to bond and expensive. I was working with a service business doing 4 million a year and been around 40 years. Excellent credit and with tons of capital. Seems like a sure thing, right? Officers had to put assets on the line to get a 2 million bond. I would suggest at least 3 quotes and let them know you are looking around.
worked in clearing for a few years and ins was expensive and so was workers comp, it was 20% because they considered it logging and as we all know its dangerous
Bonding of the levels you’ll need will be tough. You’ll essentially have to provide assets equal to the value of the bond or in some cases with an established business they’ll do bond similar to an insurance policy but the premium it stupid high because the potential risk for the company carrying the bond is very high. For example, years ago I had to have $100,000 bond (not much in the excavating world I know). With $100k sitting in a fund it was $69 a month. Had I done the other route and essentially bought a policy for that $100k it was almost a $1,000 a month. I saw the challenges getting bonded several years ago on reclaim work as well. To get $250k they wanted half in something liquid (cash) and the other in assets. It’s not impossible but it’s a challenge for a new venture.
In FL, if you have the $100k, you put it in a financial institution (or maybe with the govt.) and it is held as the bond, no additional cost. Unfortunately, it is held for a few years in case there is a claim against it down the road.
I am looking for recommendations for company’s that sell general liability insurance for cedar mulching and rock milling. I am having a difficult time finding an insurance company. We are located in Hunt, Texas Any help is appreciated!
Welcome to the Forums HTX. Glad to have you. I'm sure there are commercial insurance brokers in Kerrville that would be happy to quote a policy. Get more than one quote as prices from the brokers for the same policy can vary widely. We priced our GL, WC and Auto policy out last year and saved a ton of money.
I think with a mulching business it would a very good idea to have a fire suppression system, especially on the mulcher and CTL. Have read several posts of them burning up. Also good to clean them out on a regular basis. Edit: You might get better insurance rates if you have fire supression on your machine(s).