One of the most difficult aspects of starting a new business is accurately projecting expenses. At BearWise Landscapers, we want to assist new landscaping ventures and provide you with the information you need to make appropriate business decisions regarding insurance.

For a new landscaping business with one owner and no employees, we recommend that the business carries three insurance coverages: general liability, commercial auto, and an equipment floater.

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 450 dollars for the year and if you install landscapes, your premium will be slightly higher at around 650 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 new landscapers wishing to save money, we recommend that you should not go below $500,000 combined single limit. For a landscaper with one driver, one truck worth around 10,000 dollars, and one trailer worth around 5,000 dollars, the premium will range depending on your radius of operations and driving record. If you have no points on your license, 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 Progressive Auto’s rates and service for landscapers with under 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 new landscaper with 10,000 to 20,000 worth of equipment, you can expect a premium on this coverage in the range of 150 dollars to 400 dollars. We often package this coverage in with the general liability insurance policy, but we can also write it by itself through a few insurance carriers.

With these three insurance coverages, your new landscaping business will have the protection it needs to avoid the losses that would otherwise end your landscaping career. For more information or to receive final quotes when you launch your new business, please contact us or complete the online quote request form. We enjoy working with new landscapers and look forward to being your insurance advisor as your business grows over time.

I run into landscapers all the time who have their work truck under their personal auto policy. Please understand that if you get into an accident while performing business your insurance carrier can and probably will deny coverage for the incident. Work vehicles are NOT covered under personal auto policies unless the policy carries a business endorsement. The problem is many insurance companies do not offer a business use endorsement and the companies that do, have a list of qualifications and limitations on the coverage provided under a business use endorsement.

A commercial business auto policy is always the best way to cover your work vehicles. Through commercial business auto policies you can receive higher limits to increase the coverage and protection for your business. The cost difference between commercial auto policies and personal policies may surprise you. In some cases commercial auto policies are less expensive and still include higher coverage limits.

If you currently have a work vehicle on a personal auto policy, please go to www.BearWiseQuotes.com/landscapersto receive a free commercial business auto quote.

Make sure you are covered and your business is protected.