How Much Should I Be Paying For Business Insurance?
If you’re in the landscaping business, you need good business insurance. You may have went to the same agent that insures your personal cars and home. This may be a good thing, but do you know what kind of coverage you’re getting. Do you know what they are basing your business insurance rate off of?
It’s important to know how your landscaping business insurance company is calculating your premiums and what you can do about it. Let’s go over a list of things that affect your premium.
If you need workers’ compensation then the insurance company is going to need your payroll numbers. Workers comp is related to payroll costs. This number plays a huge factor in determining your insurance premium. It’s important to keep this number up to date and to let your agent know if this number ever changes. By doing this you will keep your costs more steady and avoid any audits that increase your premium.
This is another number that affects the premium. The higher the income the higher the liability expense which means the higher your landscaping business insurance. This is also a number you need to stay up to date with and let your insurance company know.
This one makes sense, the more stuff you have the more coverage you need, the more coverage you need the more your insurance is going to cost you. It’s important to let you insurance company know what business property you have. From your simple lawn mowers up to your most expensive bucket truck or even a drone for aerial views, you need to let your insurance company know.
Like with your normal auto and home insurance, your location plays a part as to how much your business insurance will be. Each insurance company will have different rates for each state. Make sure you’re working with an independent insurance agent so they can check to see who has the best rates for your specific location.
The higher the deductible the lower the price. Depending on the numbers, many times it’s much smarter to save the money on your monthly premium. Keep it aside in the case you ever need to file a claim and pay your deductible.
There are many duties and jobs in the landscaping world that can get very dangerous. More dangers and risk mean a higher premium. If you have safety practices and precautions in place and can show that to the insurance carrier then you can many times get a lower rate. This isn’t good just to save money, but also essential for the safety and well-being of your employees.
This one is big, especially in the landscaping world. Simply telling the insurance company that you’re a landscaper is not sufficient. There are many different things that are done in the landscaping industry that your insurance company needs to know. These things not only affect the premium cost but can also affect whether or not certain companies even want to give you coverage or not. Here’s a list of those things:
Lawn Care Services & Maintenance– mowing yards, removing weeds and other general yard work.
Sprinkler & Irrigation– laying pvc and other pipe, hose spigots, sprinkler heads, etc.
Tree Pruning & Removal– this one is huge, especially if your going over 4 feet in height. Make sure your insurance company knows you’re doing this!
Excavation & Grading– adjusting ground level for any reason
Hardscape Design and Installation– This is an important one your insurance company needs to know. If they know you’re doing this they can make sure you have the right coverage in the case these things are stolen or damaged before they are installed.
Pesticides- Pesticides are chemicals and with chemicals there are always things that can go wrong. When things go wrong that’s where you’ll want your liability coverage to take over. If your insurance company doesn’t know you’re using pesticides then there may not be any coverage.
These are all things that you may not think very much about, but they are things that greatly affect your landscaper business insurance premium and even affect the coverage you need. Make sure you have an experienced independent agent that can sit down and talk with you and make sure your getting the correct insurance at the correct price.