There are three types of coverage that you absolutely need to insure your lawn maintenance company correctly. The first is general liability insurance. General liability coverage is typically going to be based on how much payroll your lawn maintenance company has. If you are an employee/owner, the company will assign a minimum of $16,700 of payroll. If you have employees, the general liability insurance premium will be based on your annual payroll.
Commercial auto insurance is a must. Many owners make the mistake of driving their personal vehicle that is insured on a personal auto policy to their job sites. This can have some negative consequences if you get in an accident. Chances are that your logo and company name is on your truck. Even if you are driving for personal reasons, your carrier could deny a claim because a personal auto policy is not meant to cover commercial uses. Commercial auto insurance is based on the value of the truck and the driver of that truck and will cover commercial use of the vehicle.
Even if you work alone, workers compensation is a necessary coverage to have in place. This coverage will ensure that you can continue to pay employees if they get injured on the job. If you have workers compensation coverage, the policy will at least pay the employee’s wage while out of work. Typically, the cost of workers compensation coverage is much less than the cost of being injured and out of work for just a few weeks. The cost of workers compensation will also be based on your payroll. If you have a busy season, I suggest that you look into a pay as you go payment plan which will make it easier to cash flow during the slow season.
These three coverage types are the most important to protect your lawn maintenance company, but they are not the only coverages you may need.