Archive for July, 2009

561730 NAICS Code

July 29th, 2009
by Drew Roberts, CPCU, ARM | 1 Comment »

The North American Industry Classification System (NAICS) was designed to replace the Standard Industrial Classification (SIC) system. The NAICS is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy. The NAICS Code for landscaping businesses is 561730.

561730 – Landscaping Services

The 561730 NAICS code is used to classify businesses that are primarily engaged in providing landscape care and maintenance services and/or installing trees, shrubs, plants, lawns, or gardens. This classification also includes businesses that provide these services along with the design of landscape plans and/or the construction (i.e., installation) of walkways, retaining walls, decks, fences, ponds, and similar structures. Here is a detailed list of some of the types of business operations classified into the 561730 NAICS code:

Landscaping Services

Landscaping Services

  • Arborist services
  • Tree surgery services
  • Tree trimming services
  • Tree pruning services
  • Tree removal services
  • Cemetery plot care services
  • Fertilizing lawns
  • Garden maintenance services
  • Landscape installation services
  • Lawn fertilizing services
  • Lawn maintenance services
  • Lawn mowing services
  • Lawn spraying services
  • Lawn seeding services
  • Hydroseeding services (e.g., decorative, erosion control purposes)
  • Landscape care and maintenance services
  • Landscape contractors (except construction)
  • Lawn care services (e.g., fertilizing, mowing, seeding, spraying)
  • Line slash (i.e., rights of way) maintenance services
  • Maintenance of plants and shrubs in buildings
  • Mowing services (e.g., highway, lawn, road strip)
  • Ornamental tree and shrub services
  • Plant and shrub maintenance in buildings
  • Landscaping services (except planning)
  • Plant maintenance services
  • Pruning services, ornamental tree and shrub
  • Seasonal property maintenance services (i.e., snow plowing in winter, landscaping during other seasons)
  • Seeding lawns
  • Shrub services (e.g., bracing, planting, pruning, removal, spraying, surgery, trimming)
  • Snow plowing services combined with landscaping services (i.e., seasonal property maintenance services)
  • Sod laying services
  • Spraying lawns
  • Tree and brush trimming, overhead utility line
  • Tree services (e.g., bracing, planting, pruning, removal, spraying, surgery, trimming)
  • Tropical plant maintenance services
  • Turf (except artificial) installation services
  • Weed control and fertilizing services (except crop)

The BearWise Landscapers insurance program is specifically designed to insure these types of business operations. As a division of an independent agency, our insurance agents can shop the rates from over 35 insurance carriers. We have experience with the landscaping industry and the carriers that insure businesses like yours. Allow us the opportunity to use this expertise to serve the insurance needs of your business by completing our short online form to request comparative insurance quotes.

0783 SIC Code

July 24th, 2009
by Drew Roberts, CPCU, ARM | 1 Comment »

The Standard Industrial Classification (SIC) code for businesses engaged in tree trimming services is 0783. The 0783 SIC Code is used to classify the arborists industry and more specifically, it is used to classify establishments that are primarily engaged in ornamental shrub and tree trimming services. Here is a list from a government website of different types of sub classifications for business that fall under this SIC code:

Tree Trimming

Tree Trimming

  • Ornamental shrub and tree services
  • Arborist services
  • Removal services, bush and tree
  • Planting services, ornamental bush
  • Planting services, ornamental tree
  • Pruning services, ornamental bush
  • Pruning services, ornamental tree
  • Bracing and surgery services
  • Bracing services, ornamental tree
  • Surgery services, ornamental bush
  • Surgery services, ornamental tree
  • Spraying services, ornamental bush
  • Spraying services, ornamental tree
  • Tree and shrub pruning services
  • Tree trimming services for public utility lines

0782 SIC Code

July 20th, 2009
by Drew Roberts, CPCU, ARM | 1 Comment »

The Standard Industrial Classification (SIC) code for businesses engaged in lawn and garden services is 0782. The 0782 SIC Code is used to classify the landscaping industry and more specifically, it is used to classify establishments that are primarily engaged in performing a variety of landscape maintenance services. Here is a list from a government website of different types of sub classifications for business that fall under this SIC code:

Landscape Maintenance

Landscape Maintenance

  • Lawn and garden services
  • Garden services
  • Garden maintenance services
  • Garden planting services
  • Lawn services
  • Cemetery upkeep services
  • Fertilizing services, lawn
  • Lawn care services
  • Mowing services, lawn
  • Mulching services, lawn
  • Seeding services, lawn
  • Sodding contractor
  • Spraying services, lawn
  • Sprigging services, lawn
  • Bermuda sprigging services
  • Turf installation services, except artificial
  • Highway lawn and garden maintenance services
  • Landscape contractor

SIC Codes for Landscapers

July 16th, 2009
by Drew Roberts, CPCU, ARM | 3 Comments »

Lawn And Garden

Lawn And Garden

The Standard Industrial Classification (SIC) system was created by the United States government to classify industries by a four-digit code. It was established in 1937 and is being supplanted by the North American Industry Classification System (NAICS), which was released in 1997. There are still many government agencies and other organizations that still use the SIC codes, such as the US Securities and Exchange Commission (SEC).

For landscape maintenance businesses, the SIC code for your industry is 0782. For Tree trimming businesses, the SIC code for you industry is 0783. The primary industry group is 078 and it is composed of 3 SIC codes, 0781 (Landscape Counseling and Planning), 0782 (Lawn and Garden Services), and 0783 (Ornamental Shrub and Tree Services). The BearWise Landscapers insurance service focuses on the businesses classified into the 0782 SIC code and the 0783 SIC code. Here is a more detailed description of the 078 Industry Group:

Industry Group 078 - Landscape and Horticultural Services: This industry group is composed of establishments primarily engaged in performing a variety of ornamental shrub and tree services. These services include landscape design, landscape counseling, and landscape planning in the 0781 SIC code, lawn and garden services in the 0782 SIC code, and arborists and other tree services in the 0783 SIC Code. Establishments primarily engaged in forestry services are classified in Major Group 08. Establishments primarily engaged in general lawn and garden planting and maintenance are classified in Industry 0782, and those primarily engaged in performing shrub and tree services for farm crops are classified in Industry 0721. Establishments primarily engaged in the installation of artificial turf are classified in Construction, Industry 1799. Here are links to articles that describe the primary SIC codes for clients of BearWise Landscapers in more detail:

Recommended Insurance: Small Landscaper

July 13th, 2009
by Drew Roberts, CPCU, ARM | No Comments »

Landscaper with 2 Employees

Landscaper with 2 Employees

In a previous article, I recommended insurance to landscapers with one owner and no employees. In this article, I will discuss how the insurance needs change when the landscaping business grows and adds two employees. The primary difference in recommended insurance coverage is that the landscaper should add workers’ compensation coverage to protect the company from the liability of injury to these employees.

For a local landscaping business with one owner and two employees, we recommend that the business carries four insurance coverages: general liability, commercial auto, equipment floater, and workers’ compensation.

1. General Liability: This policy provides protection to your business from many types of lawsuits. We recommend that you obtain limits of $1,000,000 for each occurrence and $2,000,000 for the policy period. For lawn maintenance companies, your premium for this coverage will be around 650 dollars for the year and if you install landscapes, your premium will be slightly higher at around 850 dollars. Depending on your business model and other variables, we have several insurance carriers that might be able to offer lower premiums.

2. Commercial Auto: This policy provides protection for your vehicles and the liability arising out of their use. It is important to move the vehicles you use for your business to a commercial auto policy instead of a personal auto policy. We recommend a limit on this coverage to be $1,000,000 combined single limit, and for small landscapers wishing to save money, we recommend that you should not go below $500,000 combined single limit. For a landscaper with two drivers, one truck worth around 10,000 dollars, and one trailer worth around 5,000 dollars, the premium will vary depending on your radius of operations and driving record. If your drivers have a good driving record, you are looking at a premium in the ballpark of 1,500 dollars to 3,000 dollars depending on all those variables. We have many insurance carriers we use for these policies, but have been very pleased with Travelers’ and Progressive’s commercial auto rates and service for landscapers with fewer than 5 vehicles.

3. Equipment Floater: This policy provides protection for your equipment against a variety of exposures with the highest threat being theft. Lawn mowing equipment and landscape installation equipment can be very expensive for a new business and you want to make sure this equipment is protected. For a landscaper with 15,000 to 30,000 worth of equipment, you can expect a premium on this coverage in the range of 200 dollars to 600 dollars. We often package this coverage in wit the general liability insurance policy, but we can also write it by itself through a few insurance carriers.

4. Workers’ Compensation: This policy provides protection for your business when your employees are injured during the course of employment. It will pay the state regulated hospital expenses and a portion of the payroll from missing time off work. Most states do not require your business to carry workers’ compensation insurance until you have over 3 employees, but we recommend that you carry it regardless. Even if you have one part time employee, our agents recommend that you purchase this coverage to protect your business in the event that an employee gets injured. In Florida, for two employees with an annual remuneration of 30,000 dollars, you are looking at a total premium of 1,470 dollars for your workers compensation coverage if your business operations are landscape maintenance and 2,250 dollars of premium if your operations are landscape installation.

With these four insurance coverages, your small landscaping business will have the protection it needs to avoid the losses that would otherwise end your landscaping career. These policies will allow your business to be protected from most loss exposures, so you can focus on expanding your clientele. For more information or to receive comparative insurance quotes, please contact us or complete the online quote request form. We enjoy working with landscapers of all sizes and look forward to being your insurance advisor as your business grows over time.

Cash-for-Grass Program

July 9th, 2009
by Drew Roberts, CPCU, ARM | No Comments »

Cash 4 Grass Program

Cash 4 Grass Program

As a landscape installation business or a lawn maintenance business, you will probably find the Cash-For-Grass Program in Los Angeles interesting. I came across this program in this article by the American Society of Landscape Architects. It quoted another article in the Los Angeles Times that stated the following:

As if broken sprinklers, polluting mowers or the simple desire to conserve water weren’t enough, the Los Angeles Department of Water and Power is giving its customers more motivation to let go of their lawns. Single-family homes can get a rebate of up to $2,000, assuming you meet criteria for the Residential Drought Resistant Landscape Incentive Program.

Fast on the heels of the new watering ordinances that took effect June 1, the Los Angeles Department of Water and Power has begun a cash-for-grass program. Single-family homes served by the DWP will be eligible to receive $1 for every square foot of turf that they replace with less thirsty alternatives.

For years Southern California water managers paid scant attention to outdoor water conservation. Then they saw stunning savings achieved in Nevada. According to the Southern Nevada Water Authority, in the last decade, Las Vegas has removed more than 125 million square feet of grass, saving 7 billion gallons of water a year. That’s almost one-tenth of Southern Nevada’s annual water supply.

The rebate program requires that you have a plan for the successor landscape. Acceptable turf substitutes include drought-tolerant plants, mulch and permeable ground cover.

Whatever successor landscape you choose, the intent of the cash-for-grass program is to reduce the 50 to 90 inches of water routinely applied to turf every year. Drought-tolerant substitutes may require just 15 — in keeping with L.A.’s average annual rainfall.

For information on the L.A. Department of Water and Power program, call the regional water agency rebate hotline at (888) 376-3314. The recording will say funding for regionwide programs is exhausted, but keep listening. DWP customers can press 3 for more details on their rebate.

It is an interesting situation and is somewhat similar to Florida’s push for more native landscapes.

Remuneration vs Payroll in Workers Comp

July 6th, 2009
by Drew Roberts, CPCU, ARM | 4 Comments »

Landscaper Employee

Landscaper Employee

Many landscapers ask our insurance agents, “what is the difference between remuneration and the basic payroll I have for my employees?” In all states but one, Workers’ Compensation insurance uses ‘remuneration’ as the exclusive basis for computing premiums (the state of Washington currently allows contractors to use hours worked instead). Although payroll is the most common component of remuneration, it is not the only one. In Florida, the rules about remuneration are written by the National Council on Compensation Insurance (NCCI). But keep in mind that some states are non-NCCI jurisdictions, and there may be some significant differences in how remuneration is defined. In Florida, remuneration is the premium base used to calculate workers’ compensation premiums. It is generally referred to as payroll, but it includes more than the employees’ weekly paychecks as noted in the NCCI definition. Remuneration is defined to mean money and substitutes for money and it includes the following:

  • - Wages or salaries, including retroactive wages and salaries
  • - Total cash received by employees for commissions, draws against commissions, piecework, profit sharing, and incentive plans
  • - Bonuses, including stock bonus plans
  • - Pay for holidays, vacations, and sick leave
  • - Employees’ share of Social Security and similar statutory plans even if paid by the employer

Remuneration excludes some pay received by employees and the following can be deducted from the total remuneration:

  • - Overtime - the extra amount of pay above the regular wages may be excluded for overtime hours that are worked by employees.
  • - Tips
  • - Payments by employees for group insurance or pension plans
  • - Special awards for invention or discovery
  • - Severance Pay
  • - Executive officers have a minimum and maximum limits for their payroll if they are included on the policy
  • - Partners and Sole Proprietors have a fixed amount of payroll if they are included on the policy

Please refer to the article entitled ‘Introduction to Workers Compensation Insurance’ for more information on workers comp insurance for Florida landscaping businesses. If you have any more questions about the difference between payroll and remuneration and how this affects the premium on your workers’ compensation insurance policy, please do not hesitate to contact the agents at BearWise Landscapers.

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