Landscaping is truly everywhere.
Whether it’s your own (perfectly manicured, of course) backyard, the irrigation system at the local golf course, or the upkeep and maintenance required for public facilities, there’s landscaping work to be done. Over the last several years, we’ve seen a significant rise in demand for commercial landscaping services, which can be attributed to a handful of factors. Not only are conservation and sustainability efforts increasing, but population density in many urban centers is growing as well.
Those two concepts can sometimes be at odds, but the landscaping industry has risen to the occasion. Landscaping is about much more than a well-kept lawn or garden. It’s about creating infrastructure that is efficient and sustainable for commercial settings, helping to ensure a better tomorrow for all who interact with those spaces.
In the United States, there are more than a half-million commercial landscaping businesses (which we will touch on more below). Many of these companies are mom-and-pop small businesses who focus on a specific neighborhood or town, while others are full-scale corporations.
What we’ve found is that despite their success, many landscaping businesses aren’t aware of the coverage they need to protect themselves and their employees. And that’s what we’re here to discuss.
What is the lay of the land in the commercial landscaping industry?
To put it succinctly, the commercial landscaping industry is massive – both in terms of its current size and its potential for continued growth.
In 2022, research firm IBISWorld released its Landscaping Services Industry Report which painted a promising picture for landscaping. At the time of the report (early 2023), landscaping accounted for more than 1 million employees in the United States and a market size of $129 billion, with further growth forecasted in the next five years. Between 2017 and 2022, the industry grew at a rate of 5.3 percent year over year, and in 2024, there are more than 642,000 landscaping companies operating in the U.S.
What does this all mean? Well, a few things. First, the commercial landscaping industry is on a steady rise and some of the country’s most population-dense states – Florida, California and New York – account for the majority of those businesses. Second, the vast number of commercial landscaping businesses represents multiple categories; there are smaller companies and larger operations, and how each subset grows is dependent on both economic and social factors.
The housing market has an impact on this growth or decline, as does the customer base’s financial situation. Additionally, commercial landscaping is impacted by the growth and shaping of population centers – the more we build, the more we need to maintain.
3 unique challenges facing commercial landscaping businesses
As an insurance broker, one of the most important things to understand is what challenges your clients may encounter. The commercial landscaping industry is ripe with opportunity but that doesn’t mean businesses can simply free-wheel it; having an innate understanding of impediments and how to navigate them will position your landscaping clients for ongoing success.
Here are three factors to be aware of with the commercial landscaping industry.
The rise of concierge, direct-to-consumer platforms
In many cases, a simple Google search (“landscaping companies near me”) will turn up numerous results. Most of them are geo-targeted, meaning those searching for landscaping help will only see companies close to their home area.
However, one trend that has emerged in the last few years are concierge services that allow customers to directly search in their area, making it slightly more difficult for localized landscaping businesses to reach their target audience. Services like Angi and TaskRabbit are decent solutions if a person doesn’t know where to start, but they tend to turn up tens and hundreds of results – which can lead to confusion.
Demand can be impacted by weather patterns
Weather is constantly changing, and we all know the saying: it’s one of those things you can’t predict. Commercial landscaping is almost entirely dependent on agreeable weather, and your clients may encounter service delays, appointment cancellations and also workplace hazards (severe or inclement weather) as a result.
Low barrier of entry, coupled with regionalized markets
This is one of the unique risks that all landscaping businesses – and their insurance brokers – should be mindful of, especially in 2024 and beyond. Commercial landscaping companies appear all the time because, in many ways, the startup cost is low and many communities are underserved in this area.
But because of this low barrier of entry, many businesses simply start without truly understanding their market and how they can grow the business from there.
What risks do commercial landscaping companies face?
We’re talking about an industry where the majority of work is conducted outdoors, so some risk is inherent. Risk management in the landscaping industry may involve:
- Weather (high winds, severe weather, heat/cold)
- Employee or third-party injury
- Equipment loss or damage
- Commercial auto accidents
You might ask, what coverages will my landscaping clients need to take on commercial contracts? Let’s answer that question.
General liability
General liability commercial landscaping insurance is virtually required for many clients before work is even started. This protects against bodily injury, damages and anything else for which the landscaping business may be held responsible.
Commercial auto coverage
Most commercial landscaping businesses use company-owned vehicles to move their people and equipment between job sites. Coverage with LandPro (see below) will cover those vehicles which may include utility vehicles, trailers and more.
Business owner’s policy
Also known as a BOP, a business owner’s policy provides a combination liability protection and coverage for commercial buildings and personal property.
Workers’ compensation
Most U.S. states require businesses to provide workers’ compensation coverage in order to be a business in good standing (and in legal compliance). This coverage protects employees who become injured or ill while at work.
What you and your commercial landscaping clients need to know about LandPro, a trusted insurance partner
LandPro offers tailored coverage for lawn care professionals and landscaping businesses, protecting your clients and their employees. LandPro coverage is trusted by numerous landscaping companies nationwide to provide specialized coverage for landscape contractors and covers a variety of risks that clients may face.
We’ve outlined some above, but there are other risks that may arise. Irrigation, a major profit-driver for landscaping companies, is covered by LandPro when your client installs the irrigation system. If tree removal is required, the work done to clear areas is also covered – for both the company and the worker(s).
Learn more about specific risks and situations included in LandPro’s insurance program at the link above, or you can schedule a time to speak with our team for a more in-depth discussion focused on your clients’ business needs.
The comprehensive approach of LandPro and its industry-leading expertise
NIP Group has been insuring the green industry for more than 35 years, making us experts in providing the best insurance for lawn care businesses. LandPro is the largest national liability insurance program for landscapers, with the most experience protecting these specialized businesses with the most complete, customized landscaper insurance coverage.
Learn more about LandPro and how it can protect your clients’ cleaning business by visiting our website.
