In this sue-happy and competitive world, lawn care businesses have to learn to manage risk in order to survive and thrive. Making sure you have adequate insurance protection for your landscaping business is a must to protect your personal and business assets. While it is often a time-consuming and frustrating experience every successful business owner will go through it.
While in most areas liability insurance is not mandatory for landscaping companies, it is a very good idea to do so. Liability insurance will protect you personally should someone get hurt while working. If you or an employee is mowing and a rock goes through a window or worse hits someone, you could stand to lose your business and personal assets, unless you have the cash to cover the cost. Also if you plan on doing commercial jobs, many will require that you have insurance.
Landscaping Business Insurance
Like any other business entity, landscaping businesses do need adequate insurance cover to protect their assets. In order to provide the specific needs, many insurance companies have created specialty insurance for the landscaping industry. While you can often get commercial insurance through your home and auto agent, it often pays to shop the specialty insurers as they are better able to understand the risks present to your industry and can price the policy accordingly. When obtaining business insurance and the agent/company do not understand your business or industry then you will get a higher rate so they are protected from the unknown.
A $1 million general liability policy should cost between $350 and $450 a year which isn’t a lot of money for the protection.
Types of Coverage for Landscaping Business
Landscaping businesses have different kinds of insurance protection that may suit their different needs. Choose the one or go for all of them to prolong the life of your landscaping business.
A few different types of insurance you may want to consider for your landscaping business.
- Business liability
- Property damage
- Inventory loss
- Mechanical breakdown
Another common insurance is Worker’s compensation. Worker’s compensation protects the business owner should an employee be injured while on the job and pays for income, medical and rehabilitation benefits. This gives you the added protection of knowing the employee won’t sue your business.
While it is a time-consuming process, researching the different types of lawn care business insurance and what is included/excluded in your policy is critical to the operation of your business should something bad happen. Talk with your agent, attorney and other business owners to make sure you are getting the proper insurance for your business.