August 22, 2024
Landscaping Insurance
How much does insurance cost for landscapers?
Landscaping businesses are vulnerable to unique risks that greatly impact their insurance costs. A deeper understanding of these factors can help landscapers effectively manage expectations and expenses associated with insurance.
A primary factor in determining your risk is what type of business you are doing. Is it mainly commercial or residential? Is it regular maintenance or installation services? Within these sectors, underwriters start to develop a feel for what type of work you do and the services you are offering. Different jobs come with different levels of risk and coverage needs. A business involved with higher forms of risk will experience a higher premium cost.
Specialized services such as tree trimming, and removal services bring additional risks into the equation. These services often require specialized equipment and riskier work for your employees, working at this height level increases the risk involved with the service and significantly impact premiums. Simple ground work performed by employees will often see a lower risk and therefore lower premiums.
Your company’s financial records are also factored into your insurance costs. Payroll and gross sales are considered, larger payroll implies more employees and greater liability, and higher gross sales reflects a higher business volume. Financial records reflect the work you are doing and what risks and exposures could be associated with your business. Insight into a company’s financial records also helps understand the scale to which you are operating, a smaller business with less income and payroll likely will receive a lower premium cost.
Your business’ history can be a beneficial or harmful factor in the underwriting process, which is why it is so important to manage and limit your risks and exposures. Insurance companies prefer to insure companies with a history of stability and safety. When a carrier is confident in your ability to manage your exposures, limit your risks, and promote safety among your employees, they are more willing to cover your business. On the other hand, a company that has filed several claims and experiences losses face a burden with the insurance companies at renewal time.
There are several ways to promote safety at the workplace in the landscaping industry, and documentation of these practices can help lower your insurance premiums. Safety meetings and specialized training can equip your employees with the knowledge and skills that they need to stay safe while at work. When a company hosts a safety meeting or training for the job and submits documentation of it to the carrier, it is showing initiative to create a safe environment. Implementing safety procedures and practices can also appear favorably to carriers, things such as safety vests for road crews or regular maintenance of equipment are easy implementations that contribute to the safeness of everyone on the job site.
There is no one-size-fits-all approach to insuring the landscaping industry, but understanding what factors are influencing your premium price can help you better manage and hopefully reduce your costs. Investment in your company’s insurance is one of the most important decisions you’ll make as a business owner, it is crucial to ensure your business and its employees are properly covered. Working with an agent who is experienced in the landscaping industry can help walk you through all the risks involved with landscaping services as well as help find the best policy, tailored to you.
Are you looking to evaluate your landscaping business’ insurance coverage? Contact us today to work with an experienced agent, who can assess your risk and help craft a plan to reduce costs while securing a comprehensive protection plan.
Author | Sembree Yeary
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