Insurance is not the most fun topic to discuss… And yet, if you don’t have the right coverage protecting your business, you could be at risk for losing your lawn and landscape company. Your lawn care company needs six types of insurance coverage to protect it from the costs of property, vehicular, or human damage.
Please understand that the information provided in this blog post is for informational purposes only. Your insurance agent can guide you to the policies that best meet your company’s needs. Before you buy any insurance policy, make sure you find an insurance agent you can trust. Go through the same process as your customers do before they hire you:
- Ask your friends, family and business associates for names of agents they recommend.
- Research the top three potential insurance sales folks before making an appointment with them.
- Interview your top three agents and decide which one is the most trustworthy and will provide you with the right insurance products to protect your green industry business.
6 Types of Insurance Coverage Your Lawn Care Business Needs
- General liability: This type of insurance covers bodily injury, property damage, and other liabilities. This insurance, as well as commercial auto and workers’ compensation are three of the most popular policies that lawn care and landscaping companies own.
- Commercial auto: Where are you going to get the money to cover your truck that got into an accident last week? Commercial auto covers your work trucks, dump trucks and utility trailers in case of a crash out on the road.
- Workers’ compensation: Most states require workers’ compensation to cover your employees’ medical bills if they were hurt on the job. Even if your state doesn’t require workers’ comp, it’s still a good idea to have that type of insurance since your employees’ risk is higher of getting hurt while on the job.
- Inland marine insurance: This type of insurance protects your lawn and landscape equipment, such as lawn mowers, trimmers and leaf blowers, that goes from site to site. Inland marine insurance covers you in the event that your equipment is lost, stolen, or damaged.
- BOP: Business Owners Policy bundles your General Liability, Commercial Auto and other business insurances into one policy. BOP insurance includes a lower premium compared to paying for each insurance policy separately.
- Umbrella policy: This policy is also known as “excess liability,” provides extra insurance to cover those “holes” in your other policies that still need coverage. This policy protects your business from that one-in-a-million lawsuit that could wipe out your lawn or landscape design/build company.
On a final note, read the entire policy before signing it. You want to make sure you’re getting the coverage you agreed to with your agent.
How Much is Insurance for a Lawn Care Business?
Again, this post is only giving you general advice. You will need to speak with your agent to discuss different insurance plans and the costs of insurance in your region. That being said, there are resources that provide some data and benchmarks to consider.
According to a helpful report by Insureon in 2014, their lawn care and landscaping clients typically bought only General Liability insurance (GL). These small businesses had the owner working for him- or herself. GL covered the small lawn care or landscaping business owner for any damages or injuries done while on a customer’s property.
Since Insureon’s small green industry customers only had one employee, the owners, they didn’t buy workers’ compensation insurance. But these small company owners would need to buy workers’ comp as soon as they employed workers.
In 2014, the average cost for GL insurance was $600. In 2017, Progressive Commercial charged their landscaping contractors an average of $52 per month (or $624 per year) through its Progressive Advantage® Business Program.
Spyker Has You Covered (with the Best Lawn Care Spreaders!)
While we don’t sell insurance at Spyker, we do design and build the best lawn care spreaders! Once all the details of getting your business started and protected are in line, it’s time to think equipment. Spyker spreaders are a sound investment because you can use them throughout the entire year… not just during the growing season.
We have two commercial series to meet your lawn care and landscaping needs:
- Pro-series: Our classic spreaders get your lawn care jobs done correctly and quickly.
- ERGO-PRO series: Our newest line, built with the pros in mind. These spreaders are designed to work with your body instead of against it. Among many new features, ERGO-PRO spreaders features adjustable handles to alleviate operator fatigue.
Insureon.com, “7 Things to Know Before Buying Insurance for Your Lawn Care Business.”
Ibid, “Inland Marine Insurance.”
Investopedia.com, “Business Owner Policy.”
ProgressiveCommercial.com, “General Liability Insurance Cost.”
Ibid, “Landscaping Insurance.”
Wikipedia.org, “Business Owners Policy.”