Is Landscaping Contractor Insurance Necessary?
If you are starting a landscaping business, insurance is a must. Without it, you could face out-of-pocket expenses for incidents that occur while you are on the job. There are several types of coverage that are available and knowing which one is needed for your business is important. To help you with your assessment of available coverage, here is a brief explanation of each:
Liability Insurance
States require a minimum of liability insurance for landscaping businesses. The insurance provides coverage for property damage, physical injuries to third parties, and advertising injuries. Advertising injuries occur when damage is done to another's reputation through slander, libel, or other false claims.
The amount of liability insurance that will be needed depends on the state in which you live. Check with the state's licensing board to find out how much is required. It is important to note that liability insurance is likely not enough to meet all your needs. Other coverage will be necessary.
Tools and Equipment Insurance
Throughout the process of moving from one job to the next, it is not uncommon to lose tools and other equipment. There is also the possibility that your equipment could be damaged. When this happens, tools and equipment insurance can help with the cost of replacing the necessary items.
Tools and equipment insurance is not just limited to the items used in maintaining lawns. It can also include any items you use in your business to manage it. For instance, your tracking software that is used to keep up with work crews and finances is also covered.
Workers' Compensation
Unless your landscaping business does not have any employees, you need workers' compensation. Even if your state does not require that you obtain it, it is a good idea to do so. If an employee is injured while working, workers' compensation could help you avoid a lawsuit for thousands in medical bills and lost wages.
If an employee is out with an injury, you will likely have to hire a new person temporarily to work in his or her place. The costs of both could have a significant impact on your business's expenses. However, workers' compensation would help to cover the expenses of the injured employee, which would free up finances to afford the temporary worker.
Consult with an insurance broker to learn more about landscaping contractor insurance. He or she will determine if additional riders could help cover your business. Check out a website like http://www.olynorthwest.com for more information and assistance.
