Lawn care and landscaping businesses, from an insurance perspective, are two very different entities that need very different types of insurance protection. Before you purchase insurance for your business, it’s important to understand the differences between the two in the eyes of insurance providers.
Lawn Care Contractors
Lawn care services only offer the basics. They neither have the equipment for nor offer lawn care services that are more complex other than the following:
- Mowing
- Weeding
- Edging
- Blowing
For the most part, it comes down to whether these services are offered to residential or commercial customers. For most residential services, general liability insurance needs to cover at least $300,000 per occurrence and $600,000 aggregate damages. Commercial coverage, on the other hand, needs to cover one million dollars per occurrence and two million dollars aggregate damages.
Landscaping Company Insurance
Landscaping companies, by contrast, have a wide range of services they may or may not offer their customers. Each business is different, offering different services that may or may not include any of these great services in addition to lawn care services:
- Masonry
- Excavation
- Land Grading
- Snow Removal
This presents somewhat of a challenge for insurers. Because every landscaping business has a tendency to offer different services in order to gain and maintain an edge over the competition, there’s not a one size fits all plan for landscaping businesses. Landscaping businesses are also faced with a wide range of risks. Just take a look at this infographic.
Business owners must list each individual service they offer on their policies. Otherwise, they risk not being covered for a particular service the offer when a liability issue arises.
The bottom line is that it’s vitally important for landscaping companies to work with an independent insurance provider to make sure that all the services you offer are included and named in the policy and that you have the adequate amount of liability coverage to protect your interests.
Additional Insurance Needs to Consider
While liability is the big coverage fear most businesses have, rightfully so in many cases, it’s not the only type of insurance your business needs. Landscaping and lawn care services alike may need any or all of the following types of insurance coverage.
Workers Compensation Insurance – whether it’s required by law for small landscaping and lawn care companies in your state or not (and chance are it is), this type of insurance is one that can be a weight off your mind in fields where manual labor and injuries are common.
Business Owners Policy – this standard business policy provides steeply discounted price for insurance coverage types that are common among business owners.
Commercial Auto Insurance – since this is a business where you must go to your customer, this insurance coverage is an absolute must.
Inland Marine Coverage – provides coverage for mobile equipment, such as mowers and other equipment, that is used offsite.
Pesticide and Herbicide Application Coverage – limited protection from pollution caused by the application of pesticides and herbicides.
Knowing what you need is only half the battle. Working with a qualified insurance professional can help you determine the right types and amount of insurance coverage for your landscaping or lawn care business according to the area where you operate your business and the types of services you provide.
