Workers’ comp insurance for landscaping and tree service businesses

Landscaping involves physical work that could cause injury. If a lawn care company's employee has an adverse reaction to a pesticide, or a tree trimmer is hit by a falling branch, it could lead to costly medical bills. Workers’ compensation insurance covers medical expenses from work-related injuries and illnesses. It also helps pay for wages while the employee is recovering.

Sole proprietors might decide to buy this coverage for themselves, as it provides financial protection against work injury claims that health insurance could deny.

• Immediate medical costs, such as an ambulance ride or emergency room visit
• Ongoing medical costs, including medication
• Disability benefits while the employee is unable to work

Employer’s liability insurance, which is usually included in a workers’ comp policy, protects landscape designers, lawn care companies, and other landscaping businesses when an employee decides to sue a business owner over a work-related injury.

Employer’s liability insurance typically helps cover:

• Attorneys’ fees
• Court costs
• Settlements

Even when a lawsuit is without merit, you could end up paying for an expensive legal defense if uninsured.

The amount you pay for workers’ compensation is a specific rate based on every $100 of your business’s payroll. Your premium is determined by the type of work done by your employees (classification rate), your experience modification rate (claims history), and your payroll (per $100).

The formula providers use in underwriting to calculate workers' comp rates is:

Each state has its own laws for workers’ compensation requirements. For example, every landscaping or tree service business in Connecticut must carry workers’ compensation insurance for its employees – even part-time workers. On the other hand, North Carolina landscaping businesses are only required to carry workers’ compensation when they have three or more employees.

While independent contractors, sole proprietors, and partners don’t have to carry workers’ compensation insurance, you can purchase a policy to protect yourself, too.

In certain states, landscaping businesses must purchase coverage through a monopolistic workers' comp state fund. Those states are:

• North Dakota
• Ohio
• Washington
• Wyoming

If you purchase workers’ comp through a monopolistic state fund, it might not include employer’s liability insurance. However, you can purchase it as stop gap coverage from a private insurance company.

Landscaping, gardening, and tree trimming are filled with risks involving hazardous equipment, tools, and chemicals. You can create a safer work environment with:

• Employee safety training
• Proper equipment, such as gloves and goggles
• Equipment maintenance

Through risk management and a safe work environment, you can decrease workplace accidents. That means fewer claims – and potentially a lower insurance premium.

Workers’ compensation insurance offers protection for your employees and to some extent your business, but it doesn’t cover every risk. Landscaping business owners should also consider:

General liability insurance: This policy covers expenses related to customer injuries and property damage, such as accidental damage to a fence.

Business owner's policy: A BOP bundles general liability coverage with commercial property insurance to protect against the most common business risks.

Commercial auto insurance: This policy covers vehicles owned by your landscaping business. It typically pays for accidents, vehicle theft, and certain types of vehicle damage.

Contractor’s tools and equipment insurance: This policy helps pay for repair or replacement of landscaping equipment and tools if they are lost, stolen, or damaged.

Cyber liability insurance: A cyber liability policy helps landscaping businesses recover financially from data breaches and cyberattacks.

License and permit bonds: Landscapers might need a surety bond to get a license in their state, or to do specific types of work.

Are you ready to safeguard your landscaping business with workers’ compensation or another type of insurance? Complete Insureon’s easy online application today. Once you find the right policy, you can begin coverage in less than 24 hours.