With the pandemic landscaping lull fully in the rearview mirror, the landscaping industry is now ripe for growth, both for businesses and insurance brokers. 2024 revenue estimates for the U.S. landscaping market eclipsed $153 billion, generated by the industry’s 660,000+ businesses and roughly 1 million employees.
If you’re a broker selling insurance to landscapers, you can use these landscaping insurance sales tips to close more business and grow your book. Below, we’ll break down some key FAQs for landscaping insurance agents and how to answer some of the top questions on landscaping insurance.
Here are 5 of the most common landscaping broker FAQs you may encounter when pitching prospects.
1) What types of insurance coverage do landscaping businesses need?
The types of insurance coverage landscaping businesses need can vary based on several factors, such as the size of the business and the services they offer.
Commercial general liability insurance
Regardless of the business’s size, every landscaping operation needs basic liability insurance. This coverage protects the financial interests of the business in the event the business is responsible for a third-party loss due to property damage or injury.
Workers’ compensation coverage
For landscapers who have employees, a workers’ compensation policy will protect those employees. Since landscaping work carries a higher-than-average risk of injury, it’s important to look out for these employees, which, in turn, can benefit the business.
Inland marine and commercial auto
Another common insurance coverage most landscaping businesses need is inland marine insurance. Landscapers rely heavily on equipment in their day-to-day, so it’s important to make sure that equipment is covered in case it’s stolen or damaged. One notable exception to inland marine coverage that warrants additional insurance is business vehicles. Landscapers’ vehicles often double as equipment, as in the case of dump trucks or boom and bucket trucks. To protect these vehicles – and any potential damage they cause to others – a commercial auto policy is a must.
Excess and monoline insurance
Other types of insurance coverages landscaping businesses might want to carry include cyber liability, broadened pollution coverage, snow and ice removal, and sprinkler installation.
2) How can landscaping insurance protect against liability claims?
Landscaping insurance won’t prevent accidents and injuries, but it can protect the financial interest of the landscaping business facing liability claims. If a customer or a third party files a lawsuit against a landscaper because they believe the landscaper’s actions caused them some sort of loss, landscaping insurance can shield the business from some of the financial burden of these lawsuits. Companies facing lawsuits can spend tens – or even hundreds – of thousands of dollars on legal expenses, not to mention the cost of settling out of court, or worse, paying a judgment issued by a court.
3) What factors affect the cost of landscaping insurance?
The cost of landscaping insurance varies based on a variety of factors. Though insurance rates are, to some extent, regulated by state insurance departments, insurers charge different premiums based on their assessment of a company’s risk.
When an insurer’s underwriting department evaluates a landscaping company’s risk, it will look at the location of the business, the services it provides, and its claims history. Insurers use statistics to determine the risk level a given company represents. If the insurer believes the business is more likely to experience a loss and file a claim, it will charge the company a higher premium. If the business represents a very low risk, the insurer’s rates would be lower.
The coverage type and amount of coverage a business chooses to buy will also influence the cost of insurance. For example, if a business wants umbrella or excess liability insurance, they can expect to pay more for the added coverage. Additionally, if a business offers a wider variety of services or engages in higher-risk activities, such as tree pruning, the cost of insurance will increase.
Finally, the cost to insure a landscaping business hinges on the location and claims history of that business. As with other types of insurance, insurers want to know how likely a customer is to sustain a loss and file a claim. If the business is in an area that experiences high crime rates or severe weather, losses may be more common, increasing insurance premiums. If a business frequently files claims, it can also expect to see higher premiums.
4) Why workers’ compensation is a crucial component of landscaping insurance
A business is only as good as its employees, and those employees need the backing of solid workers’ compensation coverage. Workers’ compensation is such a crucial piece of landscaping insurance not only because it’s legally required by 49 of 50 U.S. states (Texas is the lone exception), but also because it protects one of the business’s core assets – its employees. Landscaping is a higher-risk industry, with landscaping workers suffering more fatal and non-fatal injuries than many other types of businesses.
In addition to fulfilling a legal requirement, workers’ compensation protects the well-being of landscaping employees and their families. A robust workers’ compensation policy can also help attract and retain talent while protecting the business from potential liabilities and lawsuits.
5) How can landscaping businesses ensure they have the right coverage?
Though there’s no one-size-fits-all approach to landscaping insurance, landscaping businesses can help ensure they have solid coverage by working closely with an experienced broker. For starters, landscaping businesses should meet with their insurance broker at least once a year to review their needs and coverages. If the business offers additional services, acquires new vehicles or equipment, or hires or fires employees, they should contact their broker to ensure they aren’t missing any coverage or paying for coverage they don’t need. Ultimately, ensuring the right coverage is all about the business’s risk tolerance and making sure it protects its assets so it can grow and reach its full potential.
Now that you’re ready to answer some of the landscaping insurance FAQs your prospects and clients might have, the next step is to present them with the risk management solutions they seek. NIP Group’s LandPro is a comprehensive, customizable insurance program that provides better landscaping coverage by design. Every broker should not only be prepared to answer common landscaping insurance questions but also to offer a comprehensive insurance program dedicated to the specific work, needs, and risks of landscaping contractors.
Visit the LandPro webpage to learn more about coverage options or to speak with an expert.
