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NW Illinois | When I first started my own custom spraying I was insured under my existing farm policy. It was cheap, under $500 annually, but you were capped on acres. I think I was allowed 40,000 max in application charges. I was nervous that my farm policy wasn’t comprehensive enough so I started an official company and moved to it having its own spray policy. My regular farm policy agent got me the custom policy, as they are re insured anyways by national companies.
Now premiums are based on 3 components on mine. Gross dollars of pesticides sold, gross dollars of fertilizers sold. These are calculated with a premium ratio number. Last is by wages paid to operators, again as a ratio. My LLC is a sole proprietorship so no wages are paid, setting my policy at their minimum annual salary number. LLC runs a million dollars annually through it, premium is roughly 2500.00. Deductible is 10,000. This is spray coverage and errors and omissions coverage for making recommendations. It includes insurance for storage of fertilizers and pesticides and transportation.
Insurance is an emergency safeguard. You only use it if there is something major, but it is important to have if you find yourself fighting an erroneous claim or you did a major mistake. They have the resources to defend you if you legitimately didn’t cause what you’re being said that you did. | |
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Custom spraying business
