Lawn care professionals build their business on attention to detail. From creating beautiful walkways and yards to maintaining public grounds, they understand the value of close inspection. So when it comes to protecting your lawn care business, you probably screen your business insurance options with the same level of scrutiny. However, given the abundance of misinformation online, it's easy to be led astray when searching for the facts about business insurance and your business's exposure to financial risk.
Don't leave your lawn care business vulnerable. Read on to learn the most pervasive myths about business insurance and the facts you need to know to protect your business.
Lawn Care and Landscaping Business Insurance Myths Busted
The convenience of online research comes with some drawbacks. For starters, there's a ton of information to sift through, especially when it comes to business insurance. By the time you've fact checked your findings, you may have lost an entire afternoon! Yet without adequate coverage, your business could be one lawsuit away from bankruptcy. For example, if a client sues your business and alleges it's responsible for their property damage, your business assets and even personal assets can be collected to pay the settlement.
Ready to save yourself the time, stress, and worry about whether you have accurate business insurance information? Here are six common business insurance myths and what you need to know to make smart policy purchases.
- "I can always close my business if I'm sued. Besides, I don't have many assets to worry about."
- "I have a solid reputation and my clients trust my business. I'm not worried about being sued."
- "My lawn care business is too small for its own insurance policy."
- "I'm completely covered by my business insurance policy."
- "Business insurance doesn't fully cover me anyway, so there's no point having it."
- "My employees are trained lawn care professionals. I probably don't need Workers' Compensation coverage."
"I can always close my business if I'm sued. Besides, I don't have many assets to worry about."
A lack of assets doesn't mean your business cannot be sued or that you won't be pursued for judgment liens. Regardless of how little resides in your business bank account, these assets and your personal assets can be collected if your business is sued and found liable. And unfortunately, closing your doors offers no protection when it comes to what the court decides. That's why carry adequate coverage is so important for small businesses. Your business insurance saves you from draining your assets in the event of a covered claim.
"I have a solid reputation and my clients trust my business. I'm not worried about being sued."
A spotless record doesn't mean a business is impervious to the whims of human nature. If an appointment results in third-party harm or property damage, your lawn care business could be sued for compensation. And between attorney's fees, settlement costs, and time out of work to attend court, the process could bankrupt your business if you don't have the appropriate coverage. Having business insurance means that you can continue to serve your clients with peace of mind that if events do take a turn for the worse, your business can still survive the financial hit.
"My lawn care business is too small for its own insurance policy."
The size of your business has little bearing on the necessity for business insurance. You may even argue that since your business is so small, it has all the more reason to invest in business protection since a single lawsuit could close your business's doors for good. Business insurance is designed to protect you from liability, disasters, and accidents. Without adequate coverage, you put your assets in jeopardy if you are sued or a natural disaster destroys your property. Without Property Insurance, would you have the funds to replace your equipment and tools so you can quickly get back to work?
"I'm completely covered by my business insurance policy."
Business insurance is a necessary safeguard against uncertainty, but every policy still comes limits and exclusions. If a court-ordered settlement is higher than your policy limits, you will be responsible for paying what your policy cannot. However, when you work with an insurance agent who understands the risks of the lawn care and landscaping industry — such as the insurance experts at Insureon! — you can find the policies that fills the gaps in your coverage or an Umbrella Liability policy to increase your policy limits.
"Business insurance doesn't fully cover me anyway, so there's no point having it."
When your business is faced with a costly lawsuit or in need of funds for new equipment, you can see that even a policy with minimal coverage is better than no compensation at all. Compared to the millions your business could be responsible for paying if it is charged with wrongdoing, the cost of insurance premiums pales in comparison. Additionally, many policies offer a broad spectrum of coverage, such as the Business Owner's Policy, which bundles General Liability and Property Insurance together and protects against your industry's most common risks.
"My employees are trained lawn care professionals. I probably don't need Workers' Compensation coverage."
Regardless of how many employees you have or the measures you take to provide a safe work environment, your state laws may still require you carryWorkers' Compensation Insurance. In the event that your employees are hurt while performing their work, your business could be responsible for their medical expenses out of pocket if you don't have Workers' Comp coverage. Your employees could also sue your business for their work-related injuries, but Workman's Comp can fund the cost of attorney's fees, settlements, and more, which is why the coverage is a valuable addition to your risk management plan.
Protect Your Lawn Care or Landscaping Business
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