License and permit bonds for landscapers

The list of requirements you need to become a licensed landscaper often includes being bonded. Simply put, being bonded means that your company has bought a surety bond. In this case, it's also called a license bond since it's a bond you need to get licensed.

Each state regulates licenses and bonds for various professions, including landscaping. You'll need to research the laws in your state to find out whether your landscaping business needs to be licensed, bonded, or insured.

A bond provides a guarantee that your company will comply with the regulations and terms outlined in a contract. If something goes wrong, the insurance company will reimburse the client. Unlike insurance, you must then pay that amount back to the insurance company.

The cost of a surety bond is a small percentage of the total bond amount, usually 1% to 15%.

When your landscaping business is bonded, you can get licensed, take on more projects, and provide your customers with peace of mind.

Your contractors state license board might require you to carry a bond in order to get a license. If so, it will also specify the size of the bond.

Whether or not you need a landscape construction professional license often depends on the type of work you do. For example, some states require licenses or bonds, such as a pesticide applicator license, only for landscaping companies that apply restricted-use pesticides, or work on projects of a certain size.

To get your business license, you'll likely need a certain level of education or experience. You may also have to pay a fee and pass an exam, as part of the license application process. In addition, you might need to complete continuing education courses to maintain your landscape contractor license.

License bonds and permit bonds guarantee that your company will obey state laws and regulations. Bonds can also protect customers from fraud and other illegal acts by providing them with reimbursement if a bonded landscape contracting company breaks the law or the terms of a contract.

State and county regulations may require you to obtain a permit for more extensive projects, like a large home improvement assignment or an event hall outdoor patio, or specific types of work. Often these regulations kick in when a landscaper plans to disturb a large amount of earth, or change grading significantly.

A permit may involve agreeing to perform your work in a certain manner, such as installing high efficiency sprinklers to save water in an arid area. You might also need a permit or inspection for a swimming pool or fence installation, or to work on tree trimming or removal on environmentally sensitive land.

While license and permit bonds help you comply with the law and protect your clients, they don't protect your lawn care business against common risks.

Landscaping business owners and general contractors should also consider:

General liability insurance: This policy covers expenses related to customer injuries and property damage, such as accidental damage to a customer's fence.

Business owner's policy (BOP): A BOP bundles general liability coverage with commercial property insurance at a discount. It includes coverage for fires, theft, and other common losses.

Commercial auto insurance: Required in most states, commercial auto insurance covers vehicles owned by your business. It can pay for injuries and property damage in an accident, along with vehicle theft, weather damage, and vandalism.

Workers’ compensation insurance: This policy is required in most states for businesses with employees. If a landscaper hurts their back while loading equipment or develops an illness from prolonged exposure to pesticides, workers’ comp would pay for their medical expenses as well as partial lost wages.

Contractor’s tools and equipment insurance: A type of inland marine insurance, this policy repairs or replaces a landscaping contractor’s business property if it is lost, stolen, or damaged while in transit or stored off-site like at a job site.

Cyber insurance: A cyber insurance policy helps landscaping businesses recover financially from data breaches and cyberattacks. It covers customer notification costs, cyberextortion payments, and other expenses related to a cyber incident.

Are you ready to safeguard your landscape architecture, irrigation, or other landscaping contracting company with the right small business insurance and license bonds?

Complete Insureon’s easy online application to compare quotes from top U.S. insurance companies. A licensed insurance professional is available to discuss the best types of insurance coverages for the landscaping industry and answer all of your questions.

Once you find the landscaping business insurance policies and bonds that fit your unique business needs, you can begin coverage and get a certificate of insurance in less than 24 hours.