Your landscaping business in the United States needs to obtain business insurance for landscaping business. This helps the business to pay for damages, replace damaged properties and settle claims made by third parties affected by the business.
Statista estimates that the landscaping industry in the United States will generate up to $115 billion in revenue in 2021. With an average U.S. household spending over $500 on lawn care maintenance, the opportunity is there.
In this article, you are going to learn how to obtain business insurance for a landscaping business in the United States. You will also find out the types of insurance coverages to get and where to obtain them.
What is Insurance for a Landscaping Business?
It is a type of business insurance for lawn care service providers. You need if you provide lawn care, landscaping installation, or irrigation services to residential and commercial residences.
The insurance generally covers the financial expenses arising from lawsuits and or claims by third parties. Your landscaping business also needs coverage if it is susceptible to property damages or causing bodily harm to others.
What Type of Insurance is Needed for Landscaping Business?
Are you asking, “what insurance do I need for the landscaping business?” The policy should cover basic aspects of lawn care, including tree pruning, lawn care maintenance, and snow removal.
In addition, several other types of business insurance for landscaping businesses should be obtained. Here are some of them and what they cover:
1. General Liability Landscaping Insurance
This type of small business insurance for landscaping covers bodily injuries and damages to other people’s properties. The damages or bodily injuries are specifically for people who are not your employees.
Consider a few examples:
- Someone visits your landscaping office and, on the way, out, he trips and falls. The person is likely going to file a lawsuit and claim damages, especially if he was hurt.
- You lost control of your tool and it fell on your client’s window, breaking the glass in the process.
- One of your employees mistakenly hit a gas line, which led to a fire outbreak that razed homes within the neighborhood.
In light of the above scenarios, your landscaping business will get tons of lawsuits and claims running into thousands of dollars.
Except you run a billion-dollar landscaping brand, the business might just become bankrupt. However, you can “salvage” the situation with general liability insurance that covers such claims.
2. Pollution Liability Insurance
There is no denying that pollution is common when landscaping work is ongoing. In some cases, third parties or people living in the neighborhood may be in danger. Imagine a scenario where someone developed respiratory issues because of the hazardous chemicals used during lawn care maintenance.
Do you expect the person to “keep calm” and hope to get better or file a lawsuit against your business? The latter happens most of the time!
You can prevent that from costing your landscaping business a lot of money by getting pollution liability insurance. It covers:
- Property damages caused by mold infestation.
- Harmful effects of fertilizers and pesticides.
- Bodily harm, such as air contamination.
3. Inland Marine Insurance
Inland Marine Insurance is required if your landscaping business transports equipment from one place to another. For example, you are moving your landscaping tools from the office to a client’s residence where it is needed.
This type of business insurance for landscaping businesses covers the landscaping tools and equipment throughout the transportation.
You may also be able to get coverage for the storage of these items in places other than your office. It could be at your client’s residence or another facility (warehouse).
4. Commercial Auto Insurance for Landscaping Business
Do not mistake the commercial auto insurance for inland marine insurance. This coverage is exclusive to landscaping company vehicles. It covers collision repairs, accidents, and medical expenses.
Here are some examples:
- You can make a commercial auto insurance claim if your company-owned vehicle got into an accident. Special consideration is given to at-fault accidents. That is, accidents caused by you or your employee who was driving the vehicle.
- The insurance also covers the medical bills or the cost of treating the passengers who were injured during the accident.
- It also covers the cost of repairing or replacing properties damaged by your vehicle.
The commercial auto insurance for landscaping business may not cover vehicle accidents that didn’t occur during official use. For example, if you are using the vehicle to visit a friend, your liability insurance can be used to cover the expenses and damages.
5. Equipment Insurance
This is also called tools and equipment insurance. As the namesuggests, it covers the tools and equipment used for your landscaping business.
The terms for making a claim include when the tools or equipment are stolen or lost. It also offers protection for damaged tools.
Note that the tools and equipment insurance covers both the tools you own and the ones leased to your business.
Depending on the insurance company, you may also get coverage for the tools owned or leased to your employees.
Do Landscapers Need Insurance?
Landscaping is a business of its own. As such, it needs an insurance policy to cover it. The risks associated with the business are worrisome. You could cause damages to a client’s property, inflict injury to a third party or have many incapacitated workers.
With the best insurance for lawn care business,all those will be tackled. This type of insurance is ideal if you offer gardening, snow removal, patio installation, or lawn moving services. You also need to learn how to obtain business insurance for a landscaping business if you offer the following services:
- Tree pruning
- Hardscape design
How Much is Insurance for a Landscaping Business?
The cost of obtaining business insurance for landscaping business varies by several factors. Common factors to consider are:
- The type of coverage you need.
- Your landscaping business’ revenue
- Industry-related risks
- The number of employees you want to cover with the policy.
- Tools and equipment to be covered.
- Whether the services are for residential or commercial properties.
Conclusion: Where Can I Obtain Small Business Insurance for Landscaping Business?
You now know the importance of obtaining business insurance for landscaping businesses. The top policy providers are Progressive, Thimble, Next Insurance, and Citizens Generals. Business Wire projects that U.S. landscaping marketing will grow at a CAGR of 4.5% between 2020 and 2025. You might as well spend quality time finding cheap landscaping insurance to provide all-around coverage for your business.