General liability is a coverage that every owner should purchase for his/her company. In the world that we live in, crazy situations occur everyday that result in some expensive lawsuits. Here is a recent example of lawsuit against a landscaping company.

At BearWise Landscapers, we strongly recommend that you obtain limits of $1,000,000 for each occurrence and $2,000,000 aggregate for the entire year policy period. As I am sure you are aware, lawsuits are very expensive in the United States and can deplete your policy limits rather quickly.

For larger companies we recommend that you take out an umbrella policy in excess to your general liability. Larger companies have more exposures and more assets to lose, making you a bigger target for lawyers to feast on.

Do not let one unfortunate event take away all the hard work you have committed to building your company. Take the necessary precautions to protect your company and your employees. Click here to request a quote for your company online.

Equipment theft seems to be a hot topic in the industry right now. Theft is becoming more and more prominent and landscapers are constantly being targeted. Many landscapers/lawn maintenance contractors are starting to address the issue and purchase insurance for their equipment. Equipment coverage is very affordable and I strongly recommend looking into it. Naturally I am bias, but clients tend to not ask for this coverage until after they need it.

If you choose to forego equipment coverage you should have enough liquid assets set aside to keep you business operating if your equipment were to go missing or become inoperable.

With equipment coverage being so cost effective, as an owner you can devote more of your cash reserves into growing your business and less into protecting it.

Please fill out an online quote request for an equipment floater if you are interested in this coverage.

In Florida, the rates and classifications of employees are established by the Division of Workers’ Compensation in the Department of Financial Services. This governmental agency consults with the National Council on Compensation Insurance (NCCI) to revise the rates and classifications each year. Currently, the rates for workers’ compensation have been reduced by 50% below what they were in 2004.

In Florida, there are four classification codes that apply to landscaping businesses depending on the type of landscaping work that is done. I wrote about this subject in another article and you can read more details about these Florida workers’ compensation codes below:

0042 - This classification code is applied to businesses that are primarily engaged in installing landscapes. The classification includes planning, clearing, grading and planting necessary for landscaping operations. It also includes the installation of sod. The clearing and grading done by these insureds is of the fine type necessary for finishing operations and does not result in changes to the contour of the land. This classification cannot be used in Florida along with the class code 9102 unless the operations are conducted as a separate and distinct business. The Florida rate for this classification in 2007 was 10.67 and in 2008 it is now 8.70 dollars for every 100 dollars of remuneration.

9102 - This classification code is assigned to insureds engaged in the lawn maintenance business. Code 9102 is also applied to all employees engaged in the operation of public parks. For landscapers, the essential difference between the application of Code 0042 and Code 9102 is that Code 0042 applies to work involving new landscaping installations whereas Code 9102 applies to work involving the maintenance of existing landscaping and/or lawn maintenance. Insureds that perform maintenance of lawns, grounds, and gardens include work that may involve lawn mowing, raking, application of liquid or granular fertilizer, spraying and trimming of shrubs or small trees from the ground, and thatching or aerating. The Florida rate for this classification in 2007 was 5.84 and in 2008 it is now 4.86 dollars for every 100 dollars of remuneration.

0106 - This classification code is applied to employees and businesses that prune and trim trees from above the ground. This code is applicable by job site to tree pruning contracts requiring any above-ground level work and it also applies to the whole contract including, but not limited to, chipping and cleanup activities regardless of whether or not a separate contract is written for tree pruning or lawn maintenance and another contract is written for chipping or cleanup. Incidental tree removal on a developed site conducted in connection with tree pruning, spraying, and repairing operations is also assigned to Code 0106. This classification includes risks contracting exclusively to remove immediate tree hazards due to natural catastrophes. Tree hazard cleanup may involve removing dead trees; trees or branches that are leaning on trees, power lines, or other structures; trees with broken or cracked stems; or large, dead or broken limbs that are still attached to a tree. The Florida rate for this classification in 2007 was 21.23 and in 2008 it is now 15.96 dollars for every 100 dollars of remuneration.

5183 - This classification code is applied to employees and businesses that are engaged in plumbing work that is otherwise unclassified by the Basic Manual. For landscapers, this code is used for installation of underground lawn sprinkler systems. Trenching work performed by the same contractor engaged in the installation of underground pipes for sprinkler systems is assigned to this classification since trenching work is an integral part of the underground sprinkler installation work. Such operations may be performed using either a vibrating plow or a pipe pulling machine, which knives the ground to a depth of 12 to 18 inches and to a width comparable to that of the piping being used. The piping is then automatically inserted into the ground. The Florida rate for this classification in 2007 was 8.13 and in 2008 it is now 6.75 dollars for every 100 dollars of remuneration.

The employees and operations of most landscaping businesses are classified into the codes listed above. Depending on the nature of work performed, other classification codes may apply to the business. Code 8810 is used for employees that only do clerical work and 8742 is used for those employees that only have sales duties. If you would like more information about these classifications or information on how your own employees should be classified, please do not hesitate to contact our office or request a workers’ compensation quote online.