Workers’ compensation insurance covers medical costs and lost wages for work-related injuries and illnesses. This policy is required in almost every state for businesses that have employees.
Landscaping involves physical work that could cause injury. If a lawn care company's employee is overexposed to pesticides, or a tree trimmer is hit by a falling branch, it could lead to costly medical bills. Workers’ compensation 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.
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 an injury.
Employer’s liability insurance typically helps cover:
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 is:
Classification rate x Experience modification rate x (Payroll / 100) = Premium
Each state has its own laws for workers’ compensation requirements. For example, every landscaping 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.
In certain states, landscaping businesses must purchase workers’ compensation insurance through a monopolistic state fund. Those states are:
If you purchase workers’ comp insurance through a monopolistic state fund, it may not include employer’s liability insurance. However, you can purchase it from a private insurer to fill this gap in coverage.
Landscaping is filled with risks involving hazardous equipment, tools, and chemicals. You can create a safer work environment with:
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 provide coverage for all risks. 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.
Commercial auto insurance: This policy covers vehicles owned by your landscaping business. It typically pays for accidents, 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.
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.