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How Much Does Landscaping Business Insurance Cost?

If you intend to start a landscaping business, it is important to note that you will be required to buy insurance policies for the business.

Aside from the fact that the law requires you to buy the basic insurance policy covers for your landscaping business, you should also note that insurance policies are designed to protect you, your staff, customers, and your business from claims that may result from your business.

When shopping for insurance cover for your landscaping business, always look for an insurance company with a track record. Some insurance companies require that your landscaping business has been in business for a certain number of years before they will provide coverage, while others do not.

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Please note that the amount you are required to spend on insurance for your landscaping business cannot be stated without finding out the type of insurance your business requires.

If you own a landscaping business, then you will be exposed to cases like bodily injury, property damage, medical payments, legal defense and judgment, and personal and advertising injury. In this article, we are going to look at the types of insurance a landscaping business may need and also their cost.

Types Of Insurance a Landscaping Business Needs

  1. General Liability Insurance

General liability insurance is required by law in most states for all businesses and the landscaping business is not exempted. This insurance protects other staff members from suffering financial losses when your staff causes an accident when carrying out his or her duties.

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This insurance helps to pay for injuries and damages done to other people when your employee is at fault for an accident that happens as a result of carrying out your duties. This business coverage comes in two forms: Bodily injury and property damage.

Bodily Injury: note that when there is an accident as a result of your business activities, the bodily injury portion of your liability insurance caters for the cost of medical care for the victims involved. Have in mind that this coverage pays the medical bills and other expenses.

This means that insurance will also cover the cost of emergency and ongoing medical care. It also pays for the expenses incurred for rehabilitation, physical therapy, and recuperation. It goes further to cater to the victims of pain and suffering, and if applicable it pays for lost wages due to time off work. When accidents cause fatalities, this coverage also pays for the victim’s funeral expenses.

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Property Damage: If your organization is at fault for an accident, the property damages portion of your liability insurance will cater to the cost of repairs that the other person suffered.

Cost of General Liability Insurance: On average, a landscaping business in the United States can spend between $500 – $1,200 per year for $1 million in general liability coverage.

Please note that several factors will determine the price of your policy and some of them are;

  • Your Location
  • Your Deductible
  • The Number of Your Employees
  • Your per-occurrence limit
  • General aggregate limit

2. Workers Compensation Insurance

Even though general liability insurance protects your business from accidents, it usually doesn’t cover damages that you can avoid.

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It simply means that a lot of workplace injuries are not covered. In a worst-case scenario, an employee could litigate for the injuries they incurred in the workplace, and that is where workers’ compensation insurance is the most useful in a landscaping business.

Note that if an employee ends up with medical expenses from a workplace accident, workers’ compensation insurance can pay them for the time they were out of work, as well as their medical costs. In return, the employee forgoes the right to sue the employer.

This is a mutually beneficial solution, and it is usually the easiest and quickest one as well. Without workers’ compensation insurance in place, you might end up with a month-long legal battle that will drain the wallets of both business and defendant.

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Cost of Workers Compensation Insurance: Nationwide, the average cost of workers’ compensation insurance is $936 per employee, per year, or $78 per month.

  1. Medical Payments Insurance

It is important to note that this insurance protects all your staff and clients who are within the vicinity where the accident happens.

If anyone is injured, irrespective of who is at fault for the accident, medical payments coverage will cater for the associated medical bills. You should call and speak with a licensed insurance agent to determine if it is a viable option for your landscaping business.

Cost of Medical Payments Insurance: The average national cost for health insurance is $456 for an individual and $1,152 for a family per month. However, costs vary among the wide selection of health plans.

  1. Physical Damage Insurance

This is the insurance coverage that protects your utility truck and equipment directly. If your utility truck or equipment is damaged or destroyed due to unexpected events and perils, this coverage will ultimately cater to the repair or replacement of your utility truck or equipment.

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This is quite crucial for utility trucks or equipment that are not fully paid for, and those that are leased, because it provides the highest level of loss protection your company can get.

Comprehensive Physical Damage: This damage protects your utility truck or equipment against a wide variety of potential day-to-day risks. It also protects you against theft of your vehicle; break-in, vandalism, damages caused by natural events such as a hail storm, and more. This damage protection covers most damages that are not caused by overturning or by collision.

Collision Damage: Collision damages also provide you with insurance for those times when your utility truck does get damaged in a roll-over or collision. If, for instance, your utility truck or equipment crashes into another vehicle or building, your collision damages protection will pay for the cost of repairs.

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Specified Peril (CAC): This specified peril insurance provides you with protection against only those events and risks that are specifically listed on your utility truck insurance policy. It is also known as CAC, which is short for Fire and Theft with Combined Additional Coverage.

Cost of Physical Damage Insurance: In the U.S. most businesses pay an average of $1,771 per year for full coverage utility truck insurance, or about $148 per month, according to Bankrate’s 2022 analysis.

  1. Commercial Umbrella Insurance

Commercial umbrella insurance provides an extra layer of liability protection by covering costs that go beyond your other liability coverage limits. In other words, commercial umbrella insurance complements your other liability coverages by taking over when your other liability coverage limits have been reached.

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Although commercial umbrella insurance is not mandatory for a landscaping business, but if you own a big landscaping business and you own several utility trucks and equipment, then you should make sure you buy commercial umbrella insurance for your business.

Cost of Commercial Umbrella Insurance: Commercial umbrella insurance costs about $40 per month for each $1 million of additional coverage. Your level of risk and how much coverage you buy determine the cost of this policy.

Please note that many small businesses (17%) pay less than $500 per year for umbrella insurance and 36% pay between $500 and $1,000 per year.

How to Get the Best Insurance Policies for a Landscaping Business

To get the best deal for your landscaping business, you should make sure you follow these simple steps;

  1. Know Your Risks

Have it in mind that insurance for your landscaping business always needs to include liability coverage for the harm you cause others.

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However, only getting this third-party coverage means damage to your business or injuries to you and your customers are not included, so you may want to add coverage for your first-party risks. A good insurance agent can help identify your greatest risk exposures.

  1. Go for Value but Never Underinsure

You don’t want to be underinsured, but you also want to avoid buying unnecessary coverage. If a basic insurance policy is not enough to cover your risks, don’t hesitate to add endorsements or look for broader coverage. As long as you can afford it, the highest amount of insurance coverage available is the best option when dealing with sensitive businesses.

  1. Get an Agent Who Knows the Industry

Agreeably, General liability insurance is not industry-specific, but landscaping business owners still need to consider their industry and sector when shopping for coverage. An agent who has experience in the family recreation and fun business can anticipate your risks and their impacts. That way, they can help you buy the right coverage with the appropriate limits for your particular exposures.

  1. Add All Necessary Information on the Application

Remember that the information provided on your insurance application tells your agent, broker, or underwriter how to best cover your specific risks, so you want to be as accurate and honest as possible. It does not only help protect your business it may also prevent you from being denied coverage if you file a claim.