Workers’ comp insurance for landscaping and tree service businesses

Landscaping involves physical work that could cause an employee injury. If a lawn care company's employee has an adverse reaction to a pesticide, or a tree trimmer is hit by a falling branch, it could lead to costly medical bills.

Workers’ compensation insurance covers medical expenses from workplace injuries and illnesses. It also helps pay for wages while the employee is recovering.

Sole proprietors might decide to buy this coverage for themselves, as it provides financial protection against work injury claims that health insurance could deny.

• Immediate medical care, such as an ambulance ride or emergency room visit
• Ongoing medical costs, including medication
• Disability benefits while the employee is unable to work

Employer’s liability insurance, which is usually included in a workers’ comp policy, protects landscape designers, irrigation companies, and other landscaping businesses if an employee decides to sue a business owner over a work-related injury.

Employer’s liability insurance typically helps cover:

• Attorneys' fees
• Court costs
• Settlements

Even when a lawsuit is without merit, you could end up paying for an expensive legal defense if uninsured.

The amount you pay for your workers’ compensation coverage is a specific rate based on every $100 of your business’s payroll.

Your premium is determined by the type of work done by your employees (classification rate), your experience modification rate (claims history), and your payroll (per $100).

The formula providers use in underwriting to calculate workers' comp rates is:

Each state has its own laws for workers’ compensation requirements. For example, every landscaping or tree service business in New York must carry workers’ compensation insurance for its employees—even part-time workers.

On the other hand, North Carolina landscaping businesses are only required to carry workers’ compensation when they have three or more employees.

While independent contractors, sole proprietors, and partners don’t have to carry workers’ compensation insurance coverage, it can be beneficial to purchase a policy to protect yourself, too.

In certain states, landscaping businesses must purchase coverage through a monopolistic workers' comp state fund. Those states are:

• North Dakota
• Ohio
• Washington
• Wyoming

If you purchase workers’ comp through a monopolistic state fund, it might not include employer’s liability insurance. However, you can purchase it as stop gap coverage from a private insurance company.

Tree trimming, gardening, and other landscaping work are filled with risks involving hazardous equipment, tools, and chemicals. You can create a safer work environment with:

• Employee safety training
• Proper equipment, such as gloves and goggles
• Equipment maintenance

Through risk management and a safe work environment, you can decrease workplace accidents. That means fewer workers' compensation claims – and potentially a lower insurance premium.

Additional ways to save money on workers' comp are to customize your policy to fit your needs, like choosing a pay-as-you-go policy, and selecting the correct classification codes.

Learn more about other ways to reduce your workers' compensation insurance costs. 

Are you ready to safeguard your irrigation, landscape design, tree service or other lawn care business with workers' comp coverage?

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 that fit your unique business needs, you can begin coverage and get a certificate of insurance in less than 24 hours.