A: Your specific insurance needs depend on whether you serve residential or commercial customers and where your business is located. However, you'll likely want to consider…
- General Liability Insurance. This policy offers coverage for third-party bodily injury and property damage claims, both of which are events that can easily happen in the landscaping industry. A business serving commercial clients often needs to meet certain insurance limits (usually $1 million per occurrence / $2 million aggregate for General Liability) in order to fulfill contract requirements. Businesses serving only residential customers often purchase insurance with lower limits ($300,000 per occurrence / $600,000 aggregate).
- Property Insurance. Lawn care and landscaping professionals rely on their tools and equipment to get the job done. This policy insures essential commercial assets, allowing a business to quickly replace items if they're damaged or stolen.
- Workers' Compensation Insurance. If you have employees, your state probably requires you to carry Workers' Comp Insurance. This coverage can help pay for medical expenses, disability benefits, and replacement wages when your workers are injured on the job.
In addition to these concerns, you may need to follow your insurance carrier's requirements if you work with subcontractors. Namely, you may need to verify that subcontractors have their own insurance policies, ensure you're held harmless for damages, request to be an additional insured on their policy, and agree to a written contract. For more information about this, see the FAQ page "Are My Subcontractors Covered by My Landscaping Insurance?" and the article "A Lawn Care Business Owner's Guide to Subcontractors, Part 2."