The “Fully Insured” Confusion
One of the most common phrases in the lawn and landscape industry is “fully insured”. I see it on trucks every day. Companies are riding around town with a payday bullseye on their trucks without a clue. If you have a fully insured sign on your trucks or marketing material, you may want to reconsider it.
You probably put this message out there so people perceive you as a more professional service, and that’s not bad intentions to have, but it often leads to more problems than it solves. However, there are better ways to come across as professional that do not put you at risk of being a target. It’s important to understand that while the intention behind this phrase is to instill confidence in potential customers, it may inadvertently attract those looking to take advantage of your business.
The Reality of Insurance Coverage
How much does it take to be fully insured? If you have the answer to this PLEASE let me know. I’d love to sit down with your agent and have a conversation about how they fully insured you. The truth is, you are NEVER really fully insured no matter how much protection you have.
I don’t care if you have $100 million in protection, you are not fully insured. There is always an instance that will be more expensive than your coverage, even if that instance never happens. Therefore, saying you are fully insured simply doesn’t make sense. All it does is let someone know, you have insurance (and maybe a good amount of it), and that can unfortunately lead to lawsuit-happy people taking advantage of you.
The professional message you are trying to get across is okay, but there are better ways to do it. Instead of posting up that you are fully insured, why not just put insured. It is a more accurate statement and it doesn’t make you look like a payday for someone who is looking to make a quick buck off insurance. This simple change in wording can help to accurately represent your coverage without attracting unnecessary attention.
What do you do if a potential client asks you why you don’t have fully insured on your trucks? Tell them exactly why. You can do it in a serious yet joking way and inform them that those who do claim to be fully insured are simply confused. This will only help your lead see you as an informed and professional business.
A Better Approach to Insurance Representation
Many years ago when I was still young in the industry and considered joining the herd and putting “fully insured” on my business material. I had a chat with my lawyer and he brought it up. He basically gave me a scenario where we caused a wreck in a work truck and killed 5 pregnant women. Think about that, 10 dead humans. Now are you fully insured?
Or, even crazier, you cause something like a wildfire that spreads and destroys 20 homes and kills 5 people. Are you fully insured? The possibilities for scenarios are endless. With that being said, just drop the “fully” part and advertise that you’re insured. You’ll get the same respect and help yourself stay out of the way of those crazy lawsuit happy people.
What does “fully insured” mean in the lawn and landscape industry?
“Fully insured” is a common phrase used by businesses in the lawn and landscape industry. However, it’s often misleading as no business can be truly fully insured due to the limitless potential for costly incidents.
Why should I avoid using “fully insured” on my lawn and landscape business materials?
Using “fully insured” can make your business a target for lawsuit-happy individuals. It’s better to simply state “insured” to avoid attracting unnecessary attention.
What should I do if a client asks why I don’t have “fully insured” on my trucks?
Be honest and explain that the term “fully insured” is misleading. Assure them that your business is insured to handle potential incidents.
What are the risks of claiming to be “fully insured”?
Claiming to be “fully insured” can attract individuals looking to exploit your insurance coverage. There’s always a scenario that could exceed your coverage limits, making the term “fully insured” inaccurate.
How can I represent my insurance coverage accurately?
Instead of using the term “fully insured”, simply state that your business is “insured”. This accurately represents your coverage without making you a target for lawsuits.
What’s the problem with being “fully insured”?
The issue with being “fully insured” is that it’s impossible to cover every potential incident. Even with substantial coverage, there will always be scenarios that could exceed your insurance limits.
How can I communicate my insurance coverage to customers?
Instead of using the term “fully insured”, simply state that your business is “insured”. This accurately represents your coverage and communicates professionalism to your customers.