# Liability Insurance



## greggwag (May 30, 2008)

I am going to be starting work as an Arborist, and am looking into liability insurance. Any tips on insurance companies, and on about how much I will be paying in premiums? I will be working with one other person to start out and am in the New York City metro area.

Thanks


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## I can do it (Jun 1, 2008)

I just started out as well and going with pretty much the same set up. My GL is $2,024 a year for $1,000,000/$2,000,000. That also includes pestitside applications. My policy was based on what my projected annually income would be. The insurance for the chip truck, a 98 international is $1,400 a year and the insurance on the chipper, saws and tools is $440 a year.

The workers comp is what kills you. In PA I can exempt myself from the workers comp by my pt. groundman is required to have it at 27.00 on the 100 dollars paid. My secretary is only .43 on the 100 and my salesman is at .83 on the 100. 

Hope this helps. It's a little out of pocket now but is worth it in the end and you'll feel better.


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## greggwag (Jun 1, 2008)

This is great information, thanks. You are starting with a much bigger operation than I am. I'm going to be solo, and I have someone who will work with me when I'm climbing. No office, no truck or chipper. When I work in NYC, the Parks Department will come and chip brush for free. I't supposed to be only for the home owner, But that doesn't look to be a problem. It would be difficult and expensive for me to keep a truck and chipper where I live. it would partially depend on finding a place to park it--no commercial vehicles can be parked on the street over night, so I would have to rent space somewhere.

Outside of NYC, I will either have to rent equipment, or have the home owner dispose of the debris themselves.

Did you take out a loan to set yourself up?


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## I can do it (Jun 1, 2008)

I did actually, $30,000. This covers a used chip truck, insurance, new saws, hand tools, ropes, blocks, slings, insurance, lettering, advertising, office exspences, printer costs, cabling hardware and a few other odds and ends. As for a chipper I still haven't locked one down. A buddy is loaning me his 12 inch and if I need one bigger I can use his 1590.

I might go with a lease purchase deal with the local bandit dealer. $2300 a month and 75% goes to the purchase price of the chipper then of course pay it off. He has a 1590 used 2004 model for $23,000. I think with a decent summer I could pay it off in the fall. 

The other option is to just finance a new chipper. We will see. I think I will decide after we really get rolling. 

I haven't even sent my salesman out to to start finding work, I figure next week sometime since I am going down to get the truck Saturday next week.

It's going to take some aggressive sales to get this thing breathing but I hope the word of mouth keeps it going and growing.


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## greggwag (Jun 1, 2008)

I wish you well.

The word is getting around that I'm doing tree work, so I have been getting requests already. I don't think it will be hard to find work. I'm not so good at the business end of things, so going into debt to get started is not something I have the stomach for. I'll have to see how things progress. I know at some point I will have to take a leap forward with personnel and equipment in order to grow and make more income, but I also know that expenses will skyrocket as that happens as well.


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## I can do it (Jun 2, 2008)

I put an ad out for a salesman. The job is based soley on comission, you sell you get paid. I think having another salesman will make a huge difference. My dad is going to be doing salels for me but he is older and I don't know how long I can count on him and having a back up started now being trained is well worth it. Dad will be hard to replace, he has 30 yrs in the buisness of selling tree work with gross sales over 2 million a year.

I hear ya about going out on the limb and going into debt and taking that risk. I couldn't sleep for weeks. I would lay down and at night and it felt like I was on a speed train. The it's getting easier and the whole idea it sitting better with me and I am getting excited about things.


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## kamcbrayer (Oct 6, 2008)

I can do it said:


> I just started out as well and going with pretty much the same set up. My GL is $2,024 a year for $1,000,000/$2,000,000. That also includes pestitside applications. My policy was based on what my projected annually income would be. The insurance for the chip truck, a 98 international is $1,400 a year and the insurance on the chipper, saws and tools is $440 a year.
> 
> The workers comp is what kills you. In PA I can exempt myself from the workers comp by my pt. groundman is required to have it at 27.00 on the 100 dollars paid. My secretary is only .43 on the 100 and my salesman is at .83 on the 100.
> 
> Hope this helps. It's a little out of pocket now but is worth it in the end and you'll feel better.



Who is your insurance with?


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