What does a quintessential home look like? A well-maintained lawn is part of the picture for 80% of US households. There’s nothing quite like the charm of a pleasant-looking lawn and the smell of freshly mowed grass. If you grew up mowing the neighbor's yard to make a quick buck during the summer, you know that running this business has a big potential. But it has some risks.
While running a lawn care business has a low entry barrier, it doesn’t end with knowing what services to sell and securing the right people and equipment to deliver them. You must plan carefully, hire well, and make sure the administrative work, like insurance, is done before the jobs start.
As you look forward to growing your business and keeping your clients happy, have the right protection in place to overcome any unexpected challenges that may come your way.
Here’s what you need to know about startup lawn care business insurance.
A solid lawn care insurance policy should protect your landscaping business from unexpected costs, like legal claims, lawsuit expenses, or replacing damaged tools and equipment, especially when you don’t have much budget to work on.
Lawn care startups with equipment or a physical location can benefit from a business owner’s policy (BOP) to cover property damage, bodily injury, and loss of income in one comprehensive package. General liability insurance is also a good choice if you don’t own a physical storefront or office. This coverage could pay for compensation or legal defense if your equipment hits a sprinkler or a treatment that caused your client’s lawn to wither.
General liability insurance will also cover third-party injuries, but it won’t pay for your workforce if they get hurt or your equipment is damaged. For employee injuries, workers’ compensation insurance is what you’ll need.
Most states’ statutory law requires lawn care businesses to secure workers’ comp insurance to cover the costs of accidents or illnesses on the job, including immediate medical expenses like an ambulance ride or ER visit, ongoing medical costs, prescriptions, and disability benefits for when the employee can’t work. Workers’ compensation insurance also protects you as the owner if you were to be injured and lose wages, so don’t forget to safeguard yourself!
Workers' comp typically covers full-time and part-time employees, temporary workers on the payroll, self-employed individuals, and even volunteers and interns.
Your tools and equipment are your priced possessions, so don’t forget to protect them with insurance as well. Consider getting Inland marine insurance—it can cover your tools and equipment when they're stored or transported to different job sites.
There’s no special trick to finding the right insurance. It’s always good to assess your business and pick the coverage that fits your needs.
Lawn care insurance costs can vary widely. General liability insurance can cost about $1,000 or higher, depending on the amount of equipment. General liability coverage is usually the baseline, but additional coverage for more equipment or higher limits can increase costs. For larger operations, premiums can be higher because of the increased risk and value of the insured assets.
The cost of premiums for your lawn care business insurance will depend on several factors. If your business includes tree services, you can expect to pay more than a landscape designer.
The coverage types and limits you choose also affect the cost of your premium. Annual lawn care business insurance covers your business for the entire year, which can be more cost-effective than buying short-term policies over and over. Seasonal insurance, on the other hand, covers a specific period, perfect for one-off projects or seasonal work. Other factors like the size of your business, its location, the property involved, and your payroll size will also influence your insurance premium.
Let’s enter the most challenging but exciting part of securing lawn care business insurance. To apply for insurance, you'll need your Federal Employer Identification Number (FEIN), details about your business's payroll, revenue estimates for the next twelve months, and a list of your services.
Once you have these, you can complete an online form or ask an insurance broker to shop for insurance. When you apply, it's important to answer all the questions honestly. After submitting your application, the insurance provider will review your information. Many modern providers offer instant quotes online so you might get your quote immediately.
If you meet the criteria, your policy could be issued without delay. But if you don't, some providers can refer you to another insurance vendor that might be a better fit.
Starting a lawn care business is fulfilling and helps keep neighborhoods looking great. But to keep your business thriving, you need the right insurance.
A trusted advisor, like CoverHound, can make all the difference if you're unsure about your coverage needs. CoverHound will help you find the right insurance and guide you through the process every step of the way.
Let CoverHound help you lock in the perfect insurance for your lawn care business—partner with us today!
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