Landscaping business insurance is a type of protection that businesses can purchase to protect them financially if any work-related accidents occur. Since landscapers, construction workers, and other manual labor employees are often subjected to harsh conditions, unsafe areas, and long days, businesses must safeguard themselves to prevent lawsuits and financial issues.
Purchasing or not purchasing landscaping insurance before starting a project can be the difference between carrying on with a project even if an accident occurs and having to cancel it for financial reasons.
Insurance is the best way for businesses to be protected when professional liability is at stake.
Let’s see the ins and outs of the types of landscaper insurance needed, if insurance is required for all landscapers, and how a landscaping business can protect itself in the off chance of an accident or injury in the workplace.
There are different types of landscaping business insurance that companies should purchase to protect themselves in all facets of their company.
The first type of insurance that landscapers should purchase is general liability insurance. This is the most common and basic type of insurance covering accidents, bodily harm, injuries, damage to the company property, and other more detailed liabilities.
Specific clients, especially those who require a long-term project, may require general liability as a stipulation before they begin working.
The average cost of general liability insurance for landscapers comes to approximately $29 per month, which is just less than $345 per year. For contractors or landscapers who purchase both general liability insurance and BOP, the average price per month increases to just over $40.
Commercial property insurance is a type of insurance plan that covers damage against commercial property, like an accident, natural disaster, fire, or theft. This comprehensive insurance plan helps cover property and equipment used in the business.
The total price and details of the plan are determined by the location, business size, and the number of employees.
The average cost of commercial property insurance can be calculated by determining the value of the specific building or plot of land and the value of the contents on the land. The average price of commercial property insurance is approximately $65 per month, with a high-end limit of $60k.
Business owner's policy insurance, also known as BOP, combines the General Liability insurance plan and commercial property insurance into one plan. The average cost of a BOP comes to between $70 and $830 per month, including commercial property insurance.
You'll be required to get truck insurance. Commercial auto insurance is a type of protection business owners can purchase to help protect their vehicles used to transport workers, goods, or services in the workplace. As part of the your insurance policy the insurance company will pay any damages caused to third parties while the company’s vehicles are in transit.
The average commercial auto insurance rate is just over $140 per month and $1,700 per year.
Contractors insurance is a type of protection that is helpful for small business owners and entrepreneurs to protect themselves in their landscaping business. This insurance provides protection for landscapers and contractors against third-party claims or damage claims.
Every new landscaping contractor will be happy to know that most independent contractors pay less than $50 per month for their liability insurance. When compared to bigger corporations, independent contractors usually pay less per month and year for their insurance.
The average contractor's insurance cost is just under $30 per month and $345 per year. The contractor insurance is usually in tandem with the BOP, which comes to around $500 per year.
Professional liability insurance is a type of protection that protects against damages or mistakes made to the client.
For specific occupations, like landscaping or construction, general liability may not provide enough protection to keep employers covered. In this case, purchasing professional liability insurance is necessary to help safeguard business owners against malpractice claims, employee mistakes, employer negligence, or other workplace issues.
The amount contractors must pay for professional liability insurance depends on the line of work, the total number of claims from employees in the past, and the geographical location. The average professional liability insurance price comes to around $60 per month and less than $1,000 per year.
Health insurance is a type of protection that helps contractors and landscaping businesses save thousands of millions of dollars in the event of an injury or illness during work hours. If an employee is injured on the job, the hospital stays, surgeries, and medications can cost thousands. Purchasing group health insurance beforehand can prevent any costly medical care.
The average price of health insurance comes to around $275 per month and just under $3,300 per year.
Worker's compensation insurance is a type of protection that is a MUST for construction and landscaping businesses with employees. Compared to other more lenient types of insurance, almost every single state requires landscaping and construction companies to purchase worker's compensation insurance before beginning any contract job.
Worker's compensation insurance not only provides workers with medical care, partial lost wages, and death benefits, but it also gives employers the financial means to cover attorney’s fees, court prices, and settlement money.
The average price of worker’s compensation insurance is determined by the rate of employee payroll and the experience modification rate. Companies can calculate how much they pay for worker’s compensation insurance by multiplying the work done by employees by the claims history and the payroll.
The median rate of worker’s compensation insurance for landscaping businesses is approximately $6 per $100 of the payroll amount.
Lawn care insurance is protection for businesses that utilize lawn care equipment and tools, such as lawn mowers, grass cutters, shovels, mulch, and other important aesthetic and landscaping equipment. Since accidents can happen every day due to negligence, mistakes, and lack of education, lawn care insurance is a great choice for landscaping businesses to protect themselves.
A few factors will determine how much a business pays per month and per year for their insurance. The size of the business, the number of workers, and the reputation/years of operation can influence how much a contractor or landscaper may spend on insurance.
The average price of lawn care insurance for landscapers comes to around $45 per month.
In some unique cases, a landscaping business may also benefit from inland marine insurance. Inland marine insurance doesn’t cover aquatic businesses for coastal areas - the name is misleading. This type of insurance covers businesses that require protection for their equipment in a commercial workplace.
Inland marine insurance covers equipment used that has been damaged, improperly used, moved to a dangerous location, or stolen while in the place of work. Since landscaping equipment is very costly, purchasing this type of insurance can help prevent hundreds of thousands of dollars from being spent on new tools.
Furthermore, inland marine insurance covers damages during transport, or while the work equipment is being stored at a third-party location.
The average price of inland marine insurance comes to approximately $14 per month and less than $175 per year. Other sectors, such as building design, construction, and photo and video, will have a higher price per year (greater than $579 and as high as $2,000). For landscaping, the median price is one of the most affordable industries.
Excess liability insurance provides coverage to businesses that need protection against a higher liability amount. Although most landscaping companies purchase general liability or umbrella coverage, some companies may require a higher level of coverage (usually upwards of $1 million).
Since every landscaping business is different, specific businesses may require a higher level of liability coverage for legal fees, court expenses, vehicle insurance, and property damage.
The average price of excess liability insurance is between $150 and $450 per year. The total amount contractors or landscapers will have to pay per month varies based on the risk of the business, the specific sector of business, and the tier of coverage.
If a new entrepreneur or business owner is starting a landscaping business with new employees, they might be wondering - should I purchase insurance?
In short, yes. There are numerous types of insurance that can safeguard landscapers and other business owners from thousands of dollars of claims, damage, and equipment concerns. Instead of waiting for something to happen and paying out of pocket, purchasing multiple types of insurance beforehand can help save money in the long run.
General liability insurance is a requirement for all landscapers. However, other types of insurance are up to a landscaper’s own perception and specific circumstances.
We recommend purchasing the aforementioned types of insurance for contractors to protect themselves in all situations. Not only can contractors save money, but they can protect their business against potential legal issues that can threaten the longevity of the company and employees.
Still curious about landscaping insurance? Contractors need to learn more here about the different types of landscaping business insurance to cover themselves in every aspect of their thriving businesses!