If you are in the landscaping business, you probably are wondering what type of coverage you will need to carry. In nearly all cases, you will need to have adequate small business insurance. Not only that, but it's crucial to make sure that you have the right type of coverage for your company. Here's what you need to know in order to pick the right policy.
Can Landscaping Be Insured?
You may be wondering, is insurance required for a landscaping business? A landscaping business can be insured, and most of them are. We can tell you what sort of insurance is required by law or otherwise advisable in your area. Do You Need a License to Be a Landscaper?
You do need a license to be a landscaper in many areas. However, this varies from one region to another, which means that it's important to look into the specific requirements of your area.
What Type of Business License Do I Need for Landscaping?
Again, this depends on your region. You will typically need the same license as most other small businesses, but some regions will require you to be specifically licensed as a landscaper.
You Can Be Sued for Large Amounts of Money If You Lack Landscaping Liability Insurance
Unfortunately, anyone can sue you for any reason. As the owner of a landscaping business, it's possible that you could face a lawsuit that's very serious, which could bankrupt your company. However, carrying the right coverage will help to ensure that this doesn't happen.
It's important to consider both professional indemnity coverage and public liability coverage. Each of these forms of coverage provide different types of protection to landscapers. However, you will need to have both of them. Luckily, most policies do include both forms of coverage.
However, it's important to take a close look at the type of each that's offered by an insurer that you are considering. Here's what you need to know about both types of coverage as the owner of a small business in the yard care industry:
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Public liability coverage will protect you from lawsuits that come about as a result of incorrect advice about lawn watering, gardening, and other aspects of yard care.
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Public indemnity coverage will protect you from lawsuits that come about as a result of mistakes that you make while performing various yard care services, such as gardening, lawn mowing, and rearranging outdoor décor.
Are There Any Unexpected Forms of Coverage That You'll Need?
There are several somewhat unexpected forms of coverage that you'll need. This includes not only auto insurance and other forms of coverage that are indirectly related to your landscaping business, but inland marine coverage, too. This coverage is designed to cover expenses associated with items that were nonfunctional when they were shipped to you.
How Much Is Insurance for a Landscaping Company?
The cost of coverage varies significantly from one provider to another. Further, the limit on the amount your plan covers will have an impact on the cost of your premium. In addition, there are other factors that will play a role, which are tied to unique attributes of your business. Here are a few examples:
- Whether you have faced a lawsuit before
- If so, how serious the lawsuit you faced was
- The specific services you offer
- How experienced your employees are
- The value of tools that you carry
- Additional forms of coverage you need if you trim or remove trees
However, the average cost of insurance for a small landscaping business is around $25 to $50 per month. It is likely to be significantly more if you have a large number of employees, though. You may be able to recoup your landscaping insurance cost by finding ways to add value and increase your rates.
What Will Insurance for Landscapers Cover?
Insurance for landscaping professionals will cover a wide range of scenarios that frequently arise if you are working in the industry. Here are a few examples of things that a small business insurance policy for landscaping businesses should have:
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If you accidentally damage decorations, plants, or other objects in a client's yard, you could face a significant lawsuit. Luckily, carrying effective insurance can help to ensure that this doesn't happen.
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If you give advice that leads to a client accidentally damaging something in your yard, it's possible that you could face a lawsuit, but a liability policy will protect you.
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If you offer a defective product, you could also face a lawsuit, and this will be covered by your public indemnity coverage.
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If you offer gardening services, you may need to get insurance for certain plants. This will protect you if they are damaged or destroyed in transit.
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Your tools will be covered, but the amount of coverage offered per tool varies considerably. The amount that will be covered also depends on the specific tool that you're insuring.
Why Do Landscaping Professionals Need Insurance?
Landscapers need insurance to protect themselves from lawsuits, which can bankrupt your business or seriously set you back. A lawsuit could result in the loss of thousands or even hundreds of thousands of dollars. While the lawsuit amount will depend on your particular case and the nature of the services you provided, many lawsuits are large enough to seriously disrupt your business if you do not carry insurance. Furthermore, carrying insurance is the law in most places.
In order to own a landscaping business, you will always need to ensure that you meet the requirements of your region. These requirements often pertain to the specific amount of compensation that your plan offers per incident and per year. However, requirements like these may factor in as well:
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The plan may need to cover certain types of liability that you may face while working as a yard care professional, such as lawsuits that come about as a result of incorrect advice.
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It's also important to become familiar with the fee schedule of the particular insurer that you are interested in. In some cases, the administration fees can be too high for the policy to be cost effective compared to others.
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You will want to make sure that the plan is designed to offer coverage for individuals who provide services to the same type of clients that you do.
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It's important to choose a plan that comes with effective customer support. That way, any questions can be quickly answered by qualified experts who will make sure you fully understand the plan you are signing on to.
What Risks Do Landscaping Businesses Face?
If you own a landscaping business, you may face a variety of risks. Therefore, it is essential to take steps to protect yourself from a lawsuit, which is possible if you pick the right insurance provider. However, the policy that you choose will need to address these situations:
-Your landscaping equipment insurance needs to cover the types of equipment that landscapers typically use, such as leaf blowers, lawnmowers, and trailers.
-Your insurance provider should be licensed in all the areas you travel to. For instance, if you travel out of state to go to clients' homes, you need a policy that covers businesses operating in all applicable states.
-If you offer services other than landscaping, you may need two or more insurance policies. One will cover the landscaping business, and the other(s) will cover other services you offer.
Do Landscapers Need Workers’ Compensation?
Workers' comp insurance for a small business is designed to cover the expenses associated with injuries that employees sustain on the job. There are both private and public workers' compensation plans in some areas, but in other areas, it's only public coverage that's available. If you're launching a landscaping company, it's essential to be familiar with the unique requirements of your area.
Do most policies cover landscaping businesses?
If you get the right small business insurance or workers' comp coverage, you can rest assured that it will cover your landscaping business. However, that doesn't mean that all business insurance and workers' compensation providers offer this service. Here are a few key attributes of small business insurance policies that typically cover a landscaping business:
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They cover damage to a client's property that occurs as a result of errors made by you or on your behalf.
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The coverage protects against lawsuits that result from negligence and other causes.
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You will need to look into the fees that the insurer charges. Each provider usually charges different fees in addition to the premium, and it's important to be familiar with what fees are attached to landscaping businesses. They're usually only a fraction of the premium, but they may be higher depending on the unique nature of your business.
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Damage to equipment must be covered. Most small business insurance policies do this to some degree, but this varies considerably from one provider to another. In some cases, you will need to get a separate policy for certain pieces of equipment. For instance, you usually will need a separate vehicle insurance policy.
If You Do Business in Multiple States, Will You Need Multiple Plans?
If you do business in multiple states, it's likely that you will need more than one plan. In fact, you may even need to have more than one plan if you do business within multiple regions of the same state. That's because most insurers are specifically licensed to operate within certain regions of the country, such as a certain state, country, city, or county.
However, there are larger insurers that offer coverage throughout the United States. Some even have plans that are available internationally.
If you are interested in our insurance, our customer support staff will be happy to answer any questions that you have. It's also easy to get a quote from us. Schedule a phone appointment to get started!