Why is insurance a must for lawn service businesses?
From damage to a client's yard to pesticide-related illnesses, lawn care businesses face several risks. Property and liability coverage can help safeguard your lawn company from financial losses and legal costs that could devastate a small business.
Get the right insurance
6 insurance policies every lawn care business should consider
These lawn care insurance policies protect against the most common risks for lawn maintenance and landscaping businesses.
General liability insurance
A general liability policy protects lawn care professionals against legal fees from third-party property damage and injuries, such as a client tripping over a rake. It's often required for a commercial lease.
- Slip-and-fall injuries
- Accidental damage to a client's property
- Libel and other advertising injuries
Business owner's policy
Small business owners and contractors are usually eligible for a business owner's policy, or BOP. It bundles general liability coverage and commercial property insurance at a discount.
- Client bodily injuries
- Accidental damage to a client's property
- Stolen or damaged business property
Workers' comp insurance
Most states require businesses with employees to carry workers' compensation insurance. Personal health insurance won’t cover work-related injuries, which makes this policy crucial for sole proprietors too.
- Work-related medical bills
- Disability benefits
- Lawsuits from workplace accidents
Commercial auto insurance
Vehicles owned by a lawn service business must have this coverage to comply with state laws. It helps pay for financial losses in an accident, including medical expenses and property repairs.
- Injuries caused by your lawn care truck
- Property damage caused by your truck
- Vehicle theft or vandalism
Contractor's tools and equipment
A type of inland marine insurance, this business equipment coverage protects lawn care tools and equipment wherever you bring them. That includes items in transit, stored off-site, or used at a jobsite.
- Saws, drills, and other tools
- Hard hats and other safety equipment
- Excavators and forklifts
Cyber insurance
This policy helps lawn service companies survive data breaches and cyberattacks. It pays for customer notification costs when credit card numbers or other personal information is exposed.
- Data breach investigations
- Customer notification costs
- Fraud monitoring services
Lawn service insurance cost
From our customer data, here's a quick look at average lawn care insurance costs:
General liability: $46 per month
Business owner's policy: $84 per month
Workers' compensation: $143 per month
Factors that can influence lawn care business owners' premiums include:
- Your lawn care services offered
- Number of employees
- Value of your landscaping tools and equipment
- Types of insurance purchased
- Coverage limits, deductibles, and additional insureds
- Claims history
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Common questions about lawn service insurance
Take a look at answers to common questions about lawn care business insurance coverage.
Does my lawn care business need a license or bond?
Whether you'll need a business license, contractor's license, or other qualifications to start a lawn care business or run one will depend on your state's laws. When registering your business, if you call your business by any name other than your own, you'll need a doing business as (DBA) license to operate legally.
Depending on the services your lawn maintenance business offers, you may be required to obtain specific permits. This could include an environmental permit for pesticide application or a construction permit for installing curbing.
Additionally, some clients, usually large commercial clients and government entities, will require your business to carry a surety bond before signing a contract for your services.
Being able to say your lawn care or landscaping services are licensed, bonded, and insured is a big win with new clients. These qualifications show you're reliable and guarantee reimbursement if any issues arise.
What other types of lawn service insurance coverage do I need?
When building a comprehensive risk management plan for a lawn care company, small businesses, LLCs, and independent contractors may need additional types of insurance, outside of general liability coverage and workers' compensation coverage, to cover all risks and liabilities.
Some additional policies to consider are:
- Hired and non-owned auto insurance (HNOA): Lawn service businesses who drive their own pickup or other vehicle to clients' properties should invest in this insurance, as your personal auto insurance won't cover business use. HNOA provides auto liability coverage for personal, leased, and rented vehicles used by your business.
- Commercial property insurance: Homeowner's insurance provides little to no protection for business property stored in your home, which is why you may need commercial property insurance. It protects against financial losses from fires, storms, and burglaries.
- Inland marine insurance: Because commercial property insurance only covers items at your main business location, you'll likely need additional coverage for tools and equipment that travel to jobsites. Contractor's tools and equipment insurance is one example of this coverage, which can protect your lawn business's leaf blowers, lawn mowers, and other equipment.
- Commercial umbrella insurance: An umbrella policy boosts the protection of your general liability, commercial auto, and employer's liability insurance, activating when the limit is reached on the underlying policy.
