Not enough lawn care liability insurance? Customer might not pay!

There are so many things that go on in life where you just wish you knew something was going to become a problem, before you got into it. To help you take one of those unknowns off your list, how about this one from the Gopher Lawn Care Business Forum. Did you know commercial lawn care customers might withhold payment unless you can prove you have the proper liability insurance level? Read on….

One lawn care business owner wrote “I just called my insurance company to find out some information on coverage for my lawn care business and learned something I never knew before.

As I am taking the jump from residential to commercial lawn care customers, I am learning how much of a pain in the ass a commercial contracts can be. Because of a situation I currently find myself in, I am now learning how a commercial customer can withhold payment until you are able to provide proof you have their mandated level of liability insurance.

My insurance agent is confirming that and told me they get a lot of contractors who get commercial contracts, and go ahead and do the job. Once completed, the customer withholds payment and says ‘well, you don’t have enough liability coverage, so we’re not going to pay you until you get the correct coverage.’

At that point you’re stuck with no payment and have to get the coverage they require. If you are broke and can’t afford insurance or can’t afford to spend more to get the proper amount of insurance at the time, you can really find yourself in a bad spot. My advice to you is to not leave any of this to chance. Don’t be in such a rush that that you take a commercial lawn care job without knowing this ahead of time. Get your agreement with the commercial customer it in writing before any jobs are started and make sure your company has enough coverage.”

A second lawn care business owner added, “people play all kind of games, especially when they think they can get away with it. Commercial lawn care customers, will at times, have cash flow problems just like everyone else and do things to try to delay payment. Withholding payment due to lack of insurance may be an angle they try to use to put off writing a check for a period of time. It could also be a method they chose to force you to purchase the proper liability insurance coverage that protects you as well as them.

In general, it’s best to avoid problems in advance. That is why I supply all commercial lawn care customers with my certificate of insurance at the time of my bid. Most commercial properties will provide you with a bid sheet that states how much liability insurance you will need to bid, along with what work they are requiring to be completed.”

Learn how to improve your bidding with these Lawn Care Business Estimators for Android.

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