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Landscaping is a booming industry that has become more popular over the past few decades, but there are still many people who do not have any clue about the cost, coverage and providers. We have created this guide to give you an overview of what landscaping insurance entails so that you can make educated decisions on your next renovation project.
Landscaping insurance is a type of insurance that covers the cost of landscaping. Geico is one of the most common providers for this type of insurance. If you are looking to buy landscaping insurance, Geico is a good option.
Landscaping insurance, often known as lawn care insurance, is a collection of policies that safeguard the assets of a landscaping company. The most typical lawn care company insurance coverage is general liability, which covers accidents and property damage caused by non-employees. General liability insurance for landscapers begins at roughly $2,200 per year. However, most landscapers need supplementary insurance, which raises total expenditures.
The policies you need and the overall cost of your lawn care insurance are determined by a variety of criteria, including the size of your company, its location, and the services it provides. Complete a quick online form to obtain a quotation from the specialists at Hiscox in minutes for a better sense of how to insure your landscaping company.
Hiscox is a place worth visiting.
Costs of Landscaping Insurance
Costs of Landscaping Insurance vary widely depending on the total policies chosen, the coverage options selected, and your primary operations. A sole proprietor might see an annual cost of $500 while a larger company offering stump removal might have costs of $1,000 for Business Property. Most companies can expect to pay $7,200 to $17,900 in premiums per year if they are getting general liability, workers’ compensation, and Insurance for Commercial Vehicles.
Costs of Landscaping Business Insurance by Policy
The following variables influence the cost of lawn care insurance:
- Your locality and state have a significant impact on all insurance policy prices. Firms in California, for example, are more costly to insure than businesses in Oregon, although San Bernardino is less expensive than San Diego within California.
- Payroll: Workers’ compensation coverage is proportional to payroll expenditures, and it rises as the sort of risks workers encounter and their income rises.
- Yearly receipts: For liability insurance reasons, insurance firms utilize annual receipts to estimate the exposure. The premium expenses rise in direct proportion to the company’s sales.
- Property value: The entire amount of property coverage needed is determined by the value of business tools and equipment. The bigger the value of the commercial property, the higher the insurance price.
- Vehicle type: The cost is directly influenced by the year, make, and model of the truck or van you employ for your lawn care service. Vehicles have varying levels of safety features and ratings.
- Landscapers who dig or move earth are in a greater risk group than those who run a small garden and lawn care management company.
- Higher deductibles lower the yearly premium, but the company is liable for higher out-of-pocket payments in the event of a claim.
All of these characteristics, as well as the company owner’s industry expertise and claims history, are considered throughout the underwriting process.
A business owner’s policy (BOP) that includes general liability, commercial property, and business interruption coverage may save a landscaping company money. Insurers may frequently provide these insurance at a lesser cost when they are packaged together.
Is Landscaping Insurance Necessary?
Lawn care insurance is for companies who maintain or install shrubs, plants, trees, and grass on commercial or residential properties. Typical policies cover a wide range of services, including:
- Lawn care services & maintenance: Mowing, weeding, and general gardening services to maintain already-completed landscapes
- Tree pruning & removal: Dusting, spraying, trimming, branch and stump removal, and related tasks—may require licensed tree surgeons to address tall trees safely
- Excavation & grading: Adjusting ground level to create drainage and prepare the land for landscaping
- Hardscape design & implementation: Landscapes with rocks, boulders, and other nonplant concepts often require bigger equipment to relocate heavy items
For lawn care and landscaping firms, all 50 states need a license or certification, with around 20 requiring evidence of insurance before awarding a license.
Most landscaping contractors are required to get a license in certain jurisdictions, while others only need licenses for particular activities, such as the use of pesticides.
Even if your state doesn’t require it, local governments may impose licensing requirements. Landscapers and lawn care contractors must normally get specialist licenses as well, particularly if they undertake excavation and grading or use pesticides.
Landscaping Insurance Coverage Types
Most lawn care firms need landscaping insurance, which is an industry-specific collection of coverage. Landscapers need insurance to cover third-party claims, employee injuries, and property loss due to theft or vandalism.
Landscaping Insurance Policies That Are Most Common
General Liability Insurance for Businesses
General liability insurance protects you against personal harm or property damage caused by third parties, such as persons or businesses other than your own. Injuries to third parties and property damage are the most common risks in the lawn care industry, with claims and lawsuits costing hundreds of thousands of dollars.
Imagine accidentally striking a gas line while excavating a hole, causing an explosion and a fire that consumes a million-dollar property. A lawsuit might ruin your company if you don’t have general liability insurance. Worse, if you’re a single owner, your personal assets might be at danger.
Property Insurance for Businesses
Property Insurance for Businesses covers assets like your building, equipment, tools, or nursery inventory of plants, trees, and shrubbery. The specific coverage depends on the policy, but most pays for losses from events like:
- Fire
- Theft
- Vandalism
- Hail
- Windstorms
Other events are often covered, so check with your insurance agent or broker to be sure.
Another important thing to know about Property Insurance for Businesses is that it usually only covers equipment at the address listed on the policy. If someone steals a lawnmower out of the back of your truck, your property insurer most likely won’t pay. For that, you need Marine Insurance (Inland).
Marine Insurance (Inland)
Marine Insurance (Inland) covers your equipment, tools, and supplies as you move them from one job to another or while delivering your landscaping products, such as plants and trees, to a client. Policies can also cover any equipment that you store away from your primary location in places like a client’s shed or a garage. Because transporting equipment is common in the industry, most insurers include at least some inland marine coverage on their property policies.
Pro tip: Lawn care companies that transition to snow removal in the winter may need to inquire about inland marine for that specialized equipment. Make sure your agent is aware of this extra procedure to ensure you have enough coverage.
Insurance for Commercial Vehicles
Insurance for Commercial Vehicles pays for the other party’s injuries or property damage if you or your employee cause an accident while driving for work. However, that’s just liability coverage, and it’s the minimum required in most states. Landscaping business owners can opt for coverage that pays for damage to their vehicles, roadside assistance, their medical bills, and those of their passengers.
Riding lawn mowers are a popular vehicle among landscapers and lawn care companies. Riding lawn mowers, on the other hand, aren’t normally considered vehicles for insurance reasons since they aren’t meant to be used on public roads. Riding lawn mowers are considered mobile equipment and are covered by either a homeowner’s policy or a lawn care company’s commercial property coverage.
Insurance for Workers’ Compensation
Insurance for Workers’ Compensation covers medical bills and wage replacement for employees who suffer work-related injuries or illnesses. This coverage is necessary for many landscaping businesses because of the risks involved, plus most states require workers’ comp coverage if you have any employees.
Sharp tools, heavy equipment, machinery and vehicles, and even animal attacks may pose a risk to your employees, making workers’ compensation coverage essential for any small business.
In most cases, independent contractors do not need workers’ compensation coverage. However, in order to avoid penalties and fines, you must classify them as independent contractors in accordance with IRS regulations.
Umbrella Insurance for Businesses
Umbrella Insurance for Businesses provides coverage above the liability limits of other primary insurance policies. Lawsuits or significant injuries can lead to very expensive legal and medical bills. If you have a general liability limit of $2 million, but your legal fees are $3 million, umbrella insurance can pay the $1 million not covered under general liability.
Umbrella Insurance for Businesses adds liability coverage to general liability, commercial auto, and workers’ compensation policies. It doesn’t add coverage for professional liability or personal business property coverage.
Landscaping Insurance vs. Surety Bonds
Some landscaping firms need bonding in addition to the insurance plans indicated above. Surety bonds are not an insurance product. Instead, they serve as a promise to customers that they would be covered financially. The gardener pays the bond issuer, which is usually an insurance company, a premium. In the event that a claim is filed, the bond issuer compensates the aggrieved parties and subsequently collects the money from the small company. Bonds are typically priced between 1% and 15% of the entire bond amount.
Landscape contractors are often required to buy a surety bond as part of their licensing requirements. Landscape contractors must be licensed by the state contractors board in most states. Because a surety bond protects the contractor, they are ultimately liable for any damages they may suffer.
Conclusion
Whether it’s a solo entrepreneur lawn service or a full-service landscaping company, every landscaping company should have at least some small business insurance coverage. Even if you don’t own a structure or have any expensive company assets to safeguard, you deal with the general public, which exposes you to a variety of risks, including employee physical harm and property damage.
Purchasing insurance for your landscaping company is a low-cost approach to protect yourself from a potentially catastrophic financial loss. The specialists at Hiscox are a fantastic place to start if you need a fast, no-hassle quotation for landscaping insurance. Plans are simple to comprehend and may be tailored to match your specific requirements.
Hiscox is a place worth visiting.
General liability insurance is a type of insurance that covers bodily injury and property damage. It can be purchased by individuals, businesses, or organizations. The cost of general liability insurance depends on many factors including the size of the business, the amount of coverage required, and whether or not an organization has any other types of insurance. Reference: how much is general liability insurance.
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