Are you a landscaper, tree trimmer, landscape architect or designer, groundskeeper, or lawn care specialist? With spring around the corner, you may be getting ready to fill up your calendar with landscaping projects and reaching out to customers to offer your services. Canadians are very proud of their backyards, and many do not have the time to make these green spaces the oasis they dream of. That’s where landscapers come in! However, you must ensure you have the right insurance to protect your business and yourself from certain risks when working in this type of business.
It is important to know your risks as an individual who offers landscaping services. As a business owner, you should be aware of how to protect yourself and your business in the event that you’re liable for any damages or losses on a job site. Keep reading to learn more about landscaping insurance.
Who needs landscaping insurance?
So, who exactly is this type of insurance for? If you operate as any one of the following, you should consider purchasing some form of landscaping coverage:
- Arborists
- Landscape designers
- Groundskeepers
- Irrigation technicians
- Lawn specialists
- Tree stump removal specialists
- Gardeners
Aren't sure whether this type of insurance is right for you? Reach out to BrokerLink for more information! One of our expert insurance brokers would be more than happy to answer any of your questions.
Commercial general liability insurance for your landscaping company
A business general liability insurance policy can financially protect landscapers against claims that result from their services causing third-party bodily injuries, property damage or other losses.
Here’s a real-world example: your lawn mower runs over a sprinkler system line and causes a flood on your customer’s lawn. A general liability insurance policy will kick in to repair the damage you caused by paying for the cost of medical bills, legal fees that result from a liability lawsuit, repairs, and replacement costs up to your coverage limit.
An insurance broker will advise you on the amount of coverage you need. The exact amount will vary, depending on the size and scope of your landscaping business. When you meet with your broker, make sure you have all the details of your business handy. These details will be important when looking for the right coverage. Here, we will explore the various types of commercial liability insurance coverages available for your landscaping business:
Commercial property insurance
No matter how big or small your landscaping business is, your equipment needs to be protected against damage or loss. You might rent a space to store your equipment, or you might store it in your personal garage. In either case, you need protection against your equipment being damaged or stolen - supplies, heavy equipment, or anything related to running your landscaping business needs to be insured while not in use. This is where your commercial business property insurance will kick in.
If, for example, your storage shed that holds your equipment caught fire, your entire livelihood could go up in flames. It’s crucial to have the right protection in place. A commercial building insurance policy can provide replacement coverage in this situation and help you save money from having to pay out of your own pocket for these related expenses.
Tools and equipment insurance
The commercial building insurance portion of your landscaping insurance can also cover your contents when they’re not in use. A tools and equipment floater can cover you when you’re travelling or at a landscaping work site.
Your landscaping tools and equipment are most likely extremely valuable. You want to ensure that it’s covered in the event of theft, equipment breakdown, vandalism, damage caused by natural disasters, severe weather, or other possible exposures.
This type of equipment insurance requires you to list all your tools and equipment so the insurance company has a list of exactly what is covered under the policy. Remember to make a detailed inventory list of everything you use to operate your landscaping business to ensure it is covered against different types of business liabilities.
Commercial auto insurance for landscaping
Many individuals assume they can use their personal vehicle for business use. If you are using your vehicle to get from one landscaping job to another and transporting your equipment and tools around, you need to let your insurance company know. Your insurance company may exclude this type of business use under a normal personal vehicle insurance policy, and you will not have coverage in the event of an accident or other insured peril.
Luckily, business auto insurance allows you to protect your employees operating your company vehicles on a daily basis. Insuring business vehicles will protect you in the event that third-party property damage or bodily injury occurs as you or one of your employees is operating your fleet for business purposes. This includes covering the cost of medical expenses, costly lawsuits, medical fees, and other expenses.
Pollution liability insurance
Because the landscaping industry involves using different landscaping equipment and other chemicals that can be harmful to the environment, you may want to consider purchasing pollution liability insurance on top of standard landscaper insurance coverage. While some insurance providers may include this within your policy, others may have this as an additional option that you'll need to pay extra for.
Ultimately, this type of landscaping business insurance will cover the cost of any property damage to your client's property or bodily injury that could result from pesticides and additional chemicals by paying for medical costs, legal fees, and more.
Other landscaping business insurance to think about
Beyond standard landscaping business insurance coverage listed above, landscaping companies might also want to consider the following landscaping insurance options:
What is not covered under standard landscape insurance coverage?
Like all types of coverage, there are certain scenarios that a landscaping insurance policy will not cover. For example, depending on your insurance provider, any part-time employees or other contractors who work with your business are likely not going to be covered under your policy. Only full-time employees receive coverage. In this case, part-time workers will need to purchase their own coverage.
At the same time, if you make a mistake, fail to withhold information from your clients, or perform any time of misconduct, you'll need to purchase a separate errors and omissions policy to ensure you're covered if a lawsuit is filed against you. The same goes for policies such as cyber insurance, where you’ll need to specifically ask your provider to add on this type of protection, should you wish to purchase it. To ensure you fully understand what is and isn't covered under your policy, make sure you talk to your insurance provider for more information.
How much does landscaping insurance cost?
So, how do insurance companies calculate landscaper insurance costs, and what can you expect to pay for your coverage? Like all types of coverage, your insurance company will take into account several factors before determining how much you'll need to pay for your premium. Common factors include:
- Your projected revenue for the year.
- How many years of professional experience you have as a business owner.
- Whether you perform commercial property or private property landscaping.
- What province or territory you live in.
- The hand tools and other equipment you use.
- How many employees you have.
- And more.
Generally speaking, business owners can anticipate spending anywhere between $500 to $1000 a year on their insurance. Again, this will depend on the factors we've mentioned above, along with the unique circumstances of your situation.
Insurance for landscaping businesses with BrokerLink
Knowing your risks and protecting your business can help you sleep better at night. You’ll have peace of mind knowing you are properly covered. Interested in landscaping insurance? What about treehouse and trampoline insurance?
Want to improve employee well-being? Ask us about small business health equity plans and how you can make your small business more accessible for full and part-time employees!
Get in touch with one of our local insurance brokers today, and be ready for your peak season! With locations across Canada, BrokerLink may be in your neighbourhood! Feel free to come visit us in person at any time if you need small business insurance in Atlantic Canada or are located somewhere on the West Coast! You can also give us a call over the phone at any time during normal business hours! Can't wait? Get a no-obligation quote for business insurance online from your device using our free quote tool!
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FAQs about insurance for landscaping businesses
Do I need insurance to cut grass?
Most contractors that provide services for cutting grass will purchase a general liability insurance policy to protect their business operations. Cutting the grass may seem like an easy task, but it still comes with an assortment of risks involving third-party injuries and property damage. It may also be difficult to get jobs if you don’t have the right coverage in place.
Who is covered under a landscaping insurance policy?
Anyone who is a named insured under your policy is covered under a landscaping insurance policy. If you have employed other individuals to assist you with your landscaping business, you should include them in your insurance.
Does landscaping insurance include workers compensation insurance (WCB)?
No, a general liability insurance policy will not cover you for worker’s compensation insurance. You and anyone you employ will need to apply for worker’s compensation insurance through your province’s program. This program protects individuals from financial hardship incurred by a work-related injury or illness.
Is employee dishonesty covered by landscaping insurance?
So, when it comes to employee dishonesty, is your business covered? Generally speaking, yes, your company will be protected in the event one of your employees acts dishonestly toward your business or a client. The best thing you can do is to ask your insurance provider whether dishonesty constitutes one of your covered business claims scenarios under your specific policies or whether additional coverage is needed moving forward.
Are landscaping companies legally required to have insurance?
Whether or not landscaping coverage is mandated by law will depend on what province or territory you live in. For example, in Ontario, landscape contractors' insurance is required. More specifically, businesses are required to have, at a minimum, general liability coverage before they are able to operate legally within the province. Regardless, having insurance in place is a must-have if you want to protect your finances and interests as a business owner.
How do I choose the right insurance for my company?
You may be wondering, "How can I choose the right insurance policy for my business?" The best thing you can do is shop around and get quotes from different insurance providers. Not only can this help you compare coverage options, but it can also help you locate the best deals out there. If you're unsure how to do this on your own, partnering with a broker can be incredibly beneficial as they work independently from companies, so you can get unbiased advice at no charge. Keep in mind that when it comes to protecting your businesses, the cheapest option out there isn't always the best. Try to find a balance between protection and affordability if you can.
If you have any questions, contact one of our local branches.
