Lawn Care Insurance Policy Information
Lawn Care Insurance. As a lawn care professional, you're aware of how important your service is to the community. Lawn maintenance services are required for public parks, private homes, and corporate exteriors. Lawn mowing, weeding, fertilizing and seeding are labor-intensive task that primarily involves maintaining the owner's yard as per their expectations. And, accidents happen in such a line of work.
You might be having an endless list of clients who clamor to hire you. But, just one unfortunate incident is enough to put you and your startup at risk for significant financial loss, regardless of whether you're a victim of happenstance or you're the one at fault. If you're a sole proprietor, you'd be held personally liable for damage or loss if you don't have a lawn care insurance policy. That could imply losing personal property, including your home, in some cases.
Lawn care insurance protects your business from lawsuits with rates as low as $27/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked lawn care insurance questions:
- What Is Lawn Care Insurance?
- How Much Does Lawn Care Insurance Cost?
- Why Do Lawn Care Businesses Need Insurance?
- What Type Of Insurance Do Lawn Care Providers Need?
- What Are Lawn Care Risks & Exposures?
- What Does Lawn Care Insurance Cover & Pay For?
What Is Lawn Care Insurance?
Lawn care insurance is a type of insurance that covers various risks and liabilities associated with running a lawn care business. This can include coverage for damages to property, injuries to employees or customers, and liability for any accidents or incidents that may occur while providing lawn care services.
It may also include coverage for lost or stolen equipment and tools, as well as protection against financial losses due to business interruption or other unforeseen events.
How Much Does Lawn Care Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small lawn care businesses ranges from $37 to $59 per month based on location, size, payroll, sales and experience.
Why Do Lawn Care Businesses Need Insurance?
Lawn care businesses need insurance for several reasons. First and foremost, insurance helps protect the business and its owners from financial loss in the event of an accident or injury. This can include incidents such as an employee getting injured while using a lawn mower, a customer tripping and falling on the property, or damage to a client's property.
Without insurance, the costs associated with these types of accidents could be financially devastating to the business.
In addition to protecting against financial loss, insurance also helps to protect the reputation of the lawn care business. If an accident or injury occurs and the business is not insured, it could lead to negative press and damage the business's reputation. This could lead to a loss of customers and a decline in business.
Finally, insurance helps to ensure that the lawn care business is in compliance with local and state regulations. Many states require businesses to have certain types of insurance in order to operate legally. Failing to have the required coverage could result in fines and legal action, which could further impact the financial stability of the business.
Overall, having insurance is an essential part of running a successful lawn care business. It helps protect against financial loss, maintain a positive reputation, and ensure compliance with regulations.
What Type Of Insurance Do Lawn Care Providers Need?
Insuring a lawn care business will protect it against accidents, property damage, lawsuits, and equipment failure, in addition to helping one focus on the primary task at hand. In fact, securing lawn care insurance is among the basic requirements for a business that offers commercial or residential property lawn care in most states. It ensures that you and your employees are protected. In case something goes wrong, having the proper insurance policy in place takes much worry and financial stress away.
Having a licensed insurance professional to guide you would an excellent way to help design the appropriate insurance package. There are multiple, different kinds of coverage plans which can help prevent costly accidents. As with most other businesses, a simple combination of property insurance, workers' compensation, and general liability is an excellent starting point. Furthermore, some of these basic policies are almost always required by state law and local municipal codes. The various kinds of insurance available for a lawn maintenance business are discussed below.
Types of Lawn Care Insurance Policies
General Liability Insurance - Your services entail working on a property that belongs to other people for the most of your day. As such, it's important to ensure your insurance package provides coverage for personal injury or property damages which could arise from the business operations.
General liability insurance guards you against lawsuits from clients, protecting you and your lawn care business against multiple forms of negligence. You can pair general liability insurance with other lawn care insurance coverage policies to cover the crucial bases.
Business Owner's Policy - People tend to overlook the fact that lawsuits can be incredibly costly. And, most small businesses barely budget enough to cover such costs. Once an accident occurs, you won't know how costly it'll be or how much damage it'll cause. Damaged equipment or lawsuits can financially ruin your business. A business owner's policy will help keep your business afloat during such difficult times as it combines general liability, commercial property and business income bundled in one lawn care insurance policy.
Property Insurance - Property insurance protects the premises, furniture, and other business equipment like phones, computers, copiers, and cabinets. This lawn care insurance policy will insure your business against loss or damage to structures used in regular business operations.
Workers' Compensation Insurance - Working in the landscape care and maintenance industry presents several safety risks. Accidents can happen, even to the most cautious person. Unexpected accidents can threaten your business, especially if you're not well insured. An injured employee might hold you responsible for medical fees and damages.
As an employer, you should carry a workers comp policy to protect the livelihood of both your business and employees. It is mandate in most states for any non-owner employees and is aimed at covering the cost of missed wages, medical bills, and legal fees that might be incurred after the occurrence of an accident.
Commercial Auto Insurance - Do you transport the equipment using your own vehicle? If so, then covering your vehicle would be beneficial to your business. Business auto insurance will help protect you against significant vehicle-related costs, including lawsuits that might arise from accidents. You can extend commercial auto coverage across other vehicles that are used in your business' day-to-day operations.
Umbrella Liability Insurance - Perhaps you work on high-priced real estate properties. In such cases, your clients might need higher insurance coverage. Umbrella/excess liability insurance will enable you to have a plan that has more lawn care insurance coverage without having to raise the premium of your general liability policy.
Inland Marine Insurance - Machinery and tools are your business' lifeline. And, lawn care services often involve much traveling. Securing inland marine insurance will help cover your equipment during transport. It'll ensure that you don't get caught in situations which would result in you needing to repurchase expensive equipment.
Additional Lawncare Insurance Tips
- Obtain a package that's right for your style and size of business.
- Be prudent and seek adequate legal advice.
- If possible, set up automatic renewal policies on the primary lawn care insurance coverage types.
- Have the basic liability coverage policies in place at the beginning stages of your business if you're getting started.
- Aside from insurance, put a safety plan in place to ensure smooth, efficient business operations.
- Strive to fulfill the service agreements that your clients sign for.
- Revise your insurance options 2-3 times each year and seek legal advice for any blind spots or loopholes.
What Are Lawn Care Risks & Exposures
Property exposures may be limited to an office and a storage yard for vehicles or equipment.
Fire hazards can be high from the flammables used in the repair of vehicles or equipment, such as solvents and degreasers, and the chemicals in fertilizers and insecticides. These must all be well controlled, labeled, and separated with proper storage in the appropriate containers and storage facilities.
Premises liability exposures can be light at the lawn care providers's own premises if there is no public access. At job sites, hazards include injury or damage from stones or other debris thrown by power mowers, trimmers, and other equipment.
The application of lawn chemicals presents both a premises and completed operations hazard that could result in serious long-term injury, illness, or disease to customers and passersby. Overspray from operations could result in small but frequent property damage losses. Lawn care contractors who do not obtain and keep proper licensing and certification for chemical applications create a serious liability exposure to themselves.
Environmental impairment exposure is significant. The application of chemicals can result in damage to air, soil, or groundwater. The landscaper must comply with all federal, state, and municipal regulations regarding the use and disposal of chemicals and waste products. Employees who handle chemicals must have the appropriate licenses and certifications individually.
Workers compensation exposures are high due to the operation of machinery and equipment, work on uneven ground, and exposure to underground or above ground cables and lines. Use of power-cutting equipment can result in cuts and possible amputations. Back injuries, hernias, sprains, and strains can result from lifting. Chemical applications may cause lung problems along with allergic reactions and other more serious complications. Casual labor, seasonal workforce, and high turnover present a significant loss control challenge.
Inland marine exposure includes accounts receivable if the landscaper offers credit to customers, contractors' equipment, goods in transit, and valuable papers and records for customers' and suppliers' information. Equipment may include mowers, sprayers and the like. Goods in transit may be damaged by fire, collision or overturn.
Crime exposures are from employee dishonesty. Background checks, including criminal histories, should be obtained on each employee prior to hiring. Ordering, billing, and disbursement should be handled as separate duties with reconciliations occurring regularly. There should be appropriate procedures in place when employees accept payments off site.
Business auto exposures can be very limited if the service is maintenance only and does not supply plants. If plants and large trees are transported, the exposure increases due to the possibility of the load being involved in a collision or overturn. Vehicles may be custom designed with specialty equipment, such as lifts, cherry pickers, and tree planting or removal equipment.
All drivers must be well trained and have valid licenses for the type of vehicle being driven. MVRs must be run on a regular basis. Random drug and alcohol testing should be conducted. Vehicles must be well maintained with records kept in a central location.
What Does Lawn Care Insurance Cover & Pay For?
Lawn care services can be sued for various reasons, such as property damage, bodily injury, negligence, breach of contract, and more. Below are some examples of reasons lawn care services may be sued and how insurance can help pay for the lawsuit:
Property Damage: Lawn care services may accidentally damage a client's property while performing their duties. For instance, a worker may accidentally break a sprinkler head, damage a fence, or scratch a car. In this case, the client may sue the lawn care service for property damage. The lawn care service's general liability insurance can help pay for the damages and legal fees associated with the lawsuit.
Bodily Injury: A client or a passerby may get injured while the lawn care service is working on a property. For example, someone may slip and fall on wet grass or trip over equipment left on the ground. The injured party may sue the lawn care service for medical expenses, lost wages, and other damages. The lawn care service's general liability insurance can cover these expenses and help pay for the lawsuit.
Negligence: Lawn care services have a duty of care to their clients and must perform their services with reasonable care and skill. If the lawn care service fails to do so and causes harm to a client, the client may sue for negligence. For instance, if the lawn care service fails to properly apply pesticides, causing harm to people or pets, they may be sued. The lawn care service's errors and omissions insurance (E&O) can help pay for legal expenses and damages associated with the lawsuit.
Breach of Contract: Lawn care services may enter into contracts with their clients, outlining the services to be provided, the schedule, and the payment terms. If the lawn care service fails to fulfill their contractual obligations, the client may sue for breach of contract.
For example, if the lawn care service fails to show up on time or neglects to provide certain services outlined in the contract, the client may sue. The lawn care service's general liability insurance can help pay for legal expenses and damages associated with the lawsuit.
Overall, insurance is an essential protection for lawn care services. Without insurance, a lawsuit could bankrupt the business. Insurance can help pay for legal expenses, settlements, and judgments, providing the necessary financial protection to keep the lawn care service in business.
Commercial Insurance And Business Industry Classification
- SIC CODE: 0782 Lawn and Garden Services
- NAICS CODE: 561730 Landscaping Services
- Suggested Workers Compensation Code(s): 0042 Landscape Gardening & Drivers, 9102 Park NOC - All Employees & Drivers, 0106 Tree Pruning, Spraying, Repairing - All Operations & Drivers
Description for 0782: Lawn and Garden Services
Division A: Agriculture, Forestry, And Fishing | Major Group 07: Agricultural Services | Industry Group 078: Landscape And Horticultural Services
0782 Lawn and Garden Services: Establishments primarily engaged in performing a variety of lawn and garden services. Establishments primarily engaged in the installation of artificial turf are classified in Construction, Industry 1799.
- Bermuda sprigging services
- Cemetery upkeep, independent
- Garden maintenance
- Garden planting
- Lawn care
- Lawn fertilizing services
- Lawn mowing services
- Lawn mulching services
- Lawn seeding services
- Lawn spraying services
- Lawn sprigging services
- Mowing highway center strips and edges
- Seeding highway strips
- Sod laying
- Turf installation, except artificial
Lawn Care Insurance - The Bottom Line
After the above basic coverage policies, you can then review additional protection. Consider other kinds of coverage that you might need. Coverage of aspects like loss of income, mechanical breakdown, and other kinds of hazardous coverage would be worth consideration if your specific business' needs warrant it.
Lawn care insurance will save you from financial headaches that might arise in the future. Besides, having an ideal insurance package will make your services more appealing to the potential clients. It provides peace of mind to clients as they're guaranteed of compensation in case you unwittingly cause loss or damage to their property.
Work with a licensed insurance professional to secure maximum, but affordable coverage. Secure policies that will collaborate to create the ultimate coverage package, suiting most or all of your needs as your budget will allow.
Additional Resources For Contractors & Home Improvement Insurance
Learn about small business contractor's insurance, including what it covers, how much it costs - and how commercial insurance can help protect your contracting business from lawsuits.
- Air Conditioning Systems Installation Repair
- Appliance Repair & Service
- Blacksmith & Metal Workers
- Boat Repair & Dry Docks
- Boiler Contractors
- Builders Risk
- Building Cleaning & Maintenance Services
- Cabinet Installer
- Cable And Satellite TV Installer
- Chimney Sweep
- Cistern Contractors
- Contractor Liability
- Curtain Cleaners
- Deck Builders
- Door And Window Installers
- Dryer Vent Cleaning
- Drywall Contractor
- Electrical Contractors
- Environmental Remediation Contractors
- Fence Installation
- Fire Sprinkler Contractors
- Fire & Water Restoration Contractors
- Flooring Contractor
- Furniture Repair
- Garage Door Installer And Repair
- General Contractors
- Glass Contractor
- Glazier Insurance
- Gutter Installation And Repair
- House Cleaning
- HVAC Contractor
- Insulation Contractor
- Janitorial Cleaning Services
- Lawn Care
- Lawn Irrigation Sprinkler System Installation
- Oil And Gas Well Drilling Contractors
- Paperhanging Contractors
- Plastering And Stucco Contractor
- Pressure Washing Contractors
- Propane And Fuel Dealers
- Rug, Upholstery & Carpet Cleaning
- Sandblasting Contractors
- Security Alarm
- Septic Tank Cleaning
- Siding Contractor
- Sign Installation & Repair
- Solar Panel Installers
- Snow Plow
- Stone And Tile Installer
- Surety Bonds
- Swimming Pool Contractor
- Swimming Pool Service And Maintenance
- Tank Cleaners
- Tool Grinding And Repair
- Tree Surgeon
- Tree Trimming
- Upholstery Shop
- Waste Haulers & Garbage Collection
- Water Well Drilling
- Welding Contractor
- Wildlife & Pest Control
- Window Cleaning
- Specialty Contractors
The contracting industry is a field that involves a lot of risks, both for the contractor and for the clients they work for. This is why commercial insurance is so important for contractors. Insurance can protect contractors from a variety of potential losses, such as:
Liability: If a contractor causes damage to a client's property or if a client is injured while on a job site, the contractor could be held legally responsible. Liability insurance can cover legal fees and any settlements or judgments that may be awarded.
Property damage: Contractors often use a lot of expensive equipment and tools, and there is always a risk that this equipment could be damaged or stolen. Commercial property insurance can help cover the cost of replacing damaged or stolen equipment.
Business interruption: If a contractor is unable to work due to an unforeseen event, such as a natural disaster, insurance can help cover their lost income during this time.
Workers compensation: If a contractor or one of their employees is injured on the job, worker's comp can help cover medical expenses and lost wages.
Overall, commercial insurance is an important risk management tool for contractors. It can provide financial protection against a wide range of potential losses, helping contractors to stay in business and continue serving their clients.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Contractors' Equipment and Tools, General Liability, Employee Benefits Liability, Umbrella Liability, Automobile Liability and Physical Damage, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Accounts Receivable, Builders Risk, Computers, Goods in Transit, Installation Floater, Valuable Papers and Records, Cyber Liability, Employment-related Practicesand Stop Gap Liability.