Lawn mowing business insurance typically includes general liability, workers’ compensation, and tools and equipment coverage. These policies protect your small business from paying out of pocket for property damage, employee injuries, or stolen gear.
I received a phone call from a desperate client one day. He had a small grass-cutting business, and he didn’t venture too far outside of lawn maintenance. As a long-time insurance professional, I know unexpected things can happen to even the most basic businesses.
He was plowing through a high patch of grass on one job and didn’t notice that his tractor had severed a downed power line to the client’s garage. He packed up and left the site. The line was connected to some freezers and refrigerated units, and the food inside was defrosted and spoiled. The loss totaled about $5,000.
He panicked. He was a one-man operation that couldn’t survive the outlay of a sum that size. I told him to relax. He had insurance that would cover him. But is every lawn mowing business covered for all potential hazards on the job?
If you’re wondering, “What insurance do I need for a lawn mowing business?” That’s what we’re here to explore. Let’s dig a little deeper.
Understanding Lawn Care Business Insurance Basics
Business insurance for lawn care protects you from financial loss due to claims that arise during normal operations. Your personal homeowner’s insurance will not cover business activities, so dedicated commercial coverage is essential.
Along with basic lawn mowing, you might perform other tasks, such as hedge clipping or planting small shrubs and trees. You’re working on home sites and perhaps small business properties. So, you have to consider what you do, where you work, and everything that could go wrong in your day-to-day operations.
When running a lawn mowing business, you can’t rely on your personal policies to cover your business activities. In addition to incorporating and setting up a company, having business insurance will help offer protection if a homeowner takes legal action against you. Otherwise, you might need to pay out of pocket to help pay for property damage — like the spoiled food situation.
And the financial harm might not stop at the value of the food or other damaged property. You may need to hire a lawyer to defend a lawsuit, which could add another substantial dollar amount to the tab.
Insurance Policies for Lawn Mowing Businesses
General liability insurance: Your foundation protection
General liability insurance helps protect your business from claims of bodily injury or property damage caused by your operations. This is the foundation of protection for companies of all sizes and shapes.
Every lawn mowing business is different. But general liability insurance is the insurance foundation for companies of all sizes and shapes.
For example, I had another insurance client who was digging a hole to plant a Japanese maple tree. He accidentially damaged drain tile during the job, which he hadn’t expected, and the system had to be replaced in part, which cost a few thousand dollars. But his general liability insurance helped cover the expense.
You can choose various coverage amounts for general liability. An average standard tends to be $1 million, but there are a wide range of coverage amounts available.
Workers’ compensation insurance: Protecting your team
Most states mandate workers’ compensation insurance if you have employees. It covers medical expenses and wage replacement if a worker gets hurt on the job.
You understand what can go wrong: You’re working with power equipment, sharp blades, and other hazards. Injuries happen, and treatment can get costly.
While the cost of workers’ compensation is tied to your payroll, it’s also heavily influenced by the type of work your employees do. That’s why a lawn mowing company will likely pay more than an advertising agency with the same annual payroll, because the work carries a higher risk of injury.
Tools and equipment coverage: Protecting your assets
Tools and equipment policies, also known as inland marine coverage, can help cover the loss of your business property. This coverage repairs or replaces your gear if it is stolen, destroyed, or damaged.
Implements, mowers, and other power equipment are valuable. Having them stolen or destroyed could set you back. It covers these items whether you’re on a job site or on the road, going from one place to another. Inland marine typically does not cover general wear and tear, but many other perils to your tools of the trade generally fall under this type of coverage.
Additional Coverage Options to Consider
Depending on your specific services, you may need additional lawn mowing business insurance options:
- Business Owner’s Policy (BOP) combines general liability and property damage coverage. It also includes business interruption insurance, which can keep money coming in to pay overhead if a catastrophic weather event occurs. For example, a storm could destroy outbuildings and equipment stored within them. Additionally, BOP coverage can be less expensive than purchasing those three coverages separately.
- Professional liability can protect the business if your advice, recommendations, or service errors, such as fertilization guidance, landscaping plans, or irrigation instructions, cause harm or financial loss to a client.
Does Your Current Policy Provide Enough Protection?
To avoid coverage gaps, review your policies annually or as your business grows in sales or payroll. Do not rely on a bare-bones business policy or a homeowner’s rider (which doesn’t cover business activities anyway) to give you all the coverage you need.
There are pitfalls to that approach. Let’s look at some gaps.
- You might have a specialized machine that costs more than your current policy covers.
- Your policy may exclude industry-specific situations, like pollution of soil and water.
- In certain regions, you might need higher policy limits in summer than in winter.
Yes. Even solo operators can cause property damage or face lawsuits, which personal homeowner’s policies will not cover.
Yes, if you have tools and equipment coverage. This policy protects your gear whether it is stored at your business, in transit, or on a job site.
Take Action: Secure Your Protection Today
No one enjoys incurring expenses, but proper insurance coverage is a necessary one. And you can tailor your lawn mowing insurance program to suit your business needs.
At this point, you want to analyze your insurance coverage and do so each year. Figure out whether you need additional coverage or if you want to pare some coverage back. You may even be looking to start a program from scratch. In any event, you can get a quote today and get back to doing what you do best.