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How Much Is Liability Insurance for a Lawn Care Business? Cost Breakdown
"During a routine lawn maintenance operation, one of our employees hurt his back. He didn't know how serious it was and kept working, which made the injury worse." Does this sound familiar?
Whether operating machines or trimming heavy tree branches, your team is involved in rigorous processes that can lead to injuries and property damage. As a lawn care business owner, you know that even a small, misplaced step can become a bigger problem. That's why you need to safeguard your business financially.
Lawn care liability insurance is a type of small business insurance specifically designed to cover professionals in the lawn care industry against unforeseen damage, employee injuries, or third-party claims. But how much will liability insurance cost for a lawn care business?
To understand the cost implications for your business, we'll examine the factors affecting lawn care liability insurance prices and explore average costs and saving strategies.
What Does Lawn Care Business Liability Insurance Cover?
Most states require a Business Owner's Policy (BOP) for small businesses, including general liability, commercial property, and workers' compensation insurance.
General Liability Insurance covers third-party bodily injury, property damage, and advertising injury claims. This is essential for protecting against lawsuits arising from accidents or damage caused by the business.
Commercial Property Insurance protects business property such as equipment, tools, and vehicles from damage or loss due to events like fire, theft, or vandalism.
Other types of insurance small lawn care businesses need include:
Professional Liability Insurance (Errors and Omissions) protects against negligence claims or mistakes in services provided, such as incorrect application of chemicals or pesticides.
Commercial Auto Insurance covers vehicles used for business purposes, including the transportation of equipment and employees. It provides liability coverage for accidents involving company vehicles.
Pollution Liability Insurance, also referred to as Environmental Insurance, covers the costs associated with pollution cleanup and liability claims resulting from the use of chemicals, fertilizers, or pesticides in lawn care operations. This coverage is essential for protecting against environmental risks and ensuring regulatory compliance.
Inland Marine Insurance protects mobile equipment and tools while they are in transit or temporarily stored away from the business premises. It covers damages caused by theft, vandalism, or accidents during transportation.
Umbrella Insurance provides additional liability coverage beyond the limits of primary policies, such as general liability and commercial auto insurance. It offers extra protection against catastrophic events or large lawsuits that exceed the limits of other policies.
How Much Is Liability Insurance for a Lawn Care Business?
Because every lawn care business is unique, there is no universal cost for liability insurance that applies to all. Liability insurance costs can vary significantly within the same industry based on factors such as coverage types and specific business situations. For landscapers and lawn care businesses, these can range from $286 for cyber insurance to as high as $6,700 for commercial auto insurance annually.
General liability insurance can cost an annual median of $1,100, while a high-risk commercial lawn care business with tree removal service, for example, might pay for $2,300 annual general liability coverage. Commercial property insurance, in addition, can range from $170 to $650 annual premium.
Several factors can affect these premiums that you pay for coverage, including:
Your lawn care business size. Larger businesses typically face higher premiums because they have more assets to insure, can engage in a wider range of activities, and have greater risk exposure. More equipment, vehicles, and property mean more potential for loss or damage that an insurance company would have to cover.
Location. Areas prone to natural disasters and higher theft or vandalism rates might see higher premiums.
Payroll. The worker’s compensation insurance is closely linked to your payroll and the hazards employees encounter.
Type of work that you offer. Pesticide application or tree trimming services involve more risk than basic lawn mowing and might result in higher insurance costs.
Insurance coverage type and limits. The types of insurance coverage you choose and the limits of each policy significantly affect your premiums.
Deductibles. Deductibles lower yearly insurance premiums. However, take note that these can increase the company's out-of-pocket costs when a claim is made.
Claims history. A history of filing claims can indicate to insurers that you're at a higher risk of future claims, leading to higher premiums. If you have few or no claims over an extended period, you can benefit from lower rates due to perceived lower risk.
How to Save on Your Liability Insurance
It is possible to cut your business insurance costs without compromising on the coverage you need. Here are some ways to save on your liability insurance costs:
Shop Around. Prices and coverage options vary from one insurance provider to another. To make the most of your investment, make sure to get quotes from multiple insurers to compare rates and coverage.
Bundle Policies. A Business Owner's Policy (BOP) in a bundle generally costs less than buying individual coverages.
Review and Update Coverage Annually. Your business changes over time, and so do your insurance needs. Regularly reviewing your policy ensures you're not overpaying for coverage you don't need.
Increase Deductibles. Higher deductibles can lower your premium costs. Just ensure your business can afford to pay the higher deductible in case of a claim.
Implement Safety Programs. Insurers may offer discounts for businesses that have safety training programs in place or that meet certain safety standards. This reduces the risk of work-related injuries or damages, which in turn can lower your premiums.
Secure Your Peace of Mind with Liability Insurance
Due to the nature of the lawn care business, risks and costs can inevitably add up. When you have so much to protect, you can’t afford to deal with devastating financial losses from a claim. Thus, it's crucial to engage with the right lawn care liability insurance partner that gives you peace of mind.
CoverHound is your one-stop-shop for your business insurance coverage, with plans that are easy to understand and customize. Simplify your search by receiving personalized coverage from A-rated providers in less than five minutes.
