How Much Does Business Insurance Cost
for Small Landscaping and Lawn Care Businesses?
Overall, the average yearly price a small lawn care or landscaping business pays for insurance through Insureon is $611.23. The median yearly cost is $490.44. These numbers ignore business size, types of policies purchased, and even total number of policies purchased. For a more nuanced breakdown of what you might expect in the way of business insurance policy costs, read on.
About This Analysis
We got these numbers by looking at cost numbers for 15,000 of the small businesses Insureon insured in 2014. We only looked at businesses with between one and 10 employees. The average business in our study had…
- 1.88 employees (median: one).
- $169,482.38 in revenue (median: $70,000).
The average landscaping / lawn care business had...
- 1.62 people (median: one).
- $44,423.62 in revenue (median: $26,000.00).
In this report, you’ll find out which insurance policies lawn care and landscaping businesses buy most often, how much those policies cost, and which coverage limits are most popular among lawn care and landscaping businesses.
What Goes into the Cost of Landscaping Insurance?
The prices that landscapers and lawn care professionals pay for business insurance are affected by many variables: the size of the business (i.e., number of employees you have), the type of work it does, the kinds of risks its employees are exposed to, and more.
Larger businesses that have more equipment and employees to protect naturally pay more for insurance than smaller, leaner operations. But even your location in the country and the amount of time you’ve been in business can affect how much you pay.
Which Insurance Policies Do Landscapers and Lawn Care Business Owners Buy?
Most of the lawn care professionals who apply for coverage with Insureon are single-person businesses (remember: the median employee count is just one). Because of that, most of our landscaping customers buy just one policy: General Liability Insurance.
There’s a good reason for that: General Liability Insurance is a foundational policy for any small business, and especially for businesses that work on other people’s property with bulky equipment. A GL policy can cover the cost of injuries to your customers and clients, as well as damage to their property (if, say, your mower blades send a rock sailing through a client’s window).
Take a look at the breakdown of the insurance policies we sold to lawn care providers in 2014:
- 98 percent bought just General Liability Insurance.
- 1 percent bought a Business Owner’s Policy (BOP Insurance), which bundles General Liability and Property Insurance.
- 1 percent bought Workers’ Compensation Insurance.
It makes sense that almost nobody bought Workers’ Comp: if you don’t have employees beyond yourself, your state probably doesn’t require you to carry that coverage.
One thing to consider, though: General Liability Insurance can’t cover the cost of repairing or replacing damage to your equipment and gear.
If you’ve invested money in the machinery you use to complete your work (and who hasn’t?), consider asking your insurance agent whether you can benefit from Commercial Property Insurance and Inland Marine Insurance, which can help protect your equipment when it’s in storage or on the road.
How Much is General Liability Insurance for Landscaping Professionals?
Which Coverage Limits Do They Choose?
The landscapers and lawn care professionals that choose Insureon prefer General Liability Insurance policies with $1 million / $2 million coverage limits, meaning the policy will pay up to $1 million in benefits for any one incident and up to $2 million for all incidents within the life of the policy. These are also the most popular limits in other industries Insureon serves.
Here’s a look at the coverage limits landscapers tend to select:
- 84% buy $1 million / $2 million.
- 3% buy $1 million / $1 million.
- 5% buy $500K / $1 million.
- 8% buy $300K / $600K.
Breakdown of Cost for a $1M / $2M Policy
The average price of a $1 million / $2 million General Liability Insurance policy for small landscaping, lawn care, or irrigation businesses is $535.45 per year, with a median price of $450. This is slightly below the average price of a $1M / $2M General Liability insurance policy for small businesses in all industries, which is $576.08.
To see how landscapers’ General Liability Insurance costs compare to those of other small businesses, visit Insureon's General Liability Insurance Cost Analysis .