Spring signals the start of the busy season for contractors and landscapers across the region. The phones start ringing, the job sites fill up, and the crews get back to work. It is an exciting time of year, but it also brings a sharp increase in risk.
More jobs, more employees on the move, more equipment in the field, and more time on client properties all add up to greater exposure. Before the season hits full stride, it is worth taking a close look at your insurance coverage to make sure you are not leaving yourself or your business vulnerable.
Here is a breakdown of the key coverages every contractor and landscaper may want to consider heading into the busy season.
General Liability Insurance
General liability insurance is the cornerstone of any contractor or landscaper’s insurance program. It can cover third-party claims of bodily injury and property damage that arise from your business operations. For example:
- A client trips over your equipment at a job site and is injured
- Your crew accidentally damages a client’s fence, irrigation system, or outdoor structure while working
- Debris from a mowing or landscaping job damages a nearby vehicle or property
- A construction project causes unintended damage to an adjacent property
Most clients and general contractors will require a certificate of insurance showing general liability coverage before allowing you to do a job. If you do not have it, you may lose work. Most importantly, if you do not have it and something goes wrong, the financial fallout can be severe.
Workers’ Compensation Insurance
If you have employees, workers’ compensation is not optional in most states. It is a legal requirement. Workers’ compensation covers medical expenses and lost wages for employees who are injured on the job, and it protects your business from being sued directly by an injured worker.
For contractors and landscapers, the risk of on-the-job injury is real. Working with heavy equipment, operating power tools, lifting and loading materials, and spending long hours in the heat all create conditions where accidents can and do happen. Without workers’ compensation, a single employee injury could cost your business tens of thousands of dollars out of pocket.
It is also worth nothing that even if you use subcontractors, you may still be held responsible for their injuries under certain circumstances. Talk to your agent about how your workers’ compensation policy handles subcontractors and whether any gaps exist.
Commercial Auto Insurance
If your trucks, vans, or trailers are on the road for business purposes, personal auto insurance is not enough to cover them. Commercial auto insurance is specifically designed to protect vehicles used for work, and it typically provides higher liability limits to reflect the increased risk.
For contractors and landscapers, this coverage is especially important because vehicles are often loaded with expensive equipment and making multiple stops at client properties every day. Key coverage within a commercial auto policy includes:
- Liability coverage for accidents caused by your drivers
- Physical damage coverage for your own vehicles
- Hired and non-owned auto coverage for employees using personal vehicles for work
- Uninsured motorist coverage to protect your drivers from other negligent drivers on the road
Inland Marine Insurance and Equipment Coverage
Your tools and equipment are the lifeblood of your business. Without them, you cannot work. Yet many contractors and landscapers are surprised to learn that their equipment Is not automatically covered under a standard commercial property or auto policy, especially when it is in transit or stored at a job site.
Inland marine insurance, sometimes called contractor’s equipment insurance or tools and equipment coverage, is designed specifically to protect equipment and tools that move from job site to job site. It covers loss or damage due to theft, fire, vandalism, and certain accidental events.
As you head into the busy season and your equipment is in constant use and transit, make sure your policy reflects the current value of your tools and machinery. If you have added new equipment over the winter, now is the time to update your coverage.
Contractor’s Pollution Liability
This coverage may not be on every contractor’s radar, but it is worth knowing about. Contractor’s pollution liability protects your business from claims related to pollution or contamination caused by your work. For landscapers, this might include the misapplication of pesticides or herbicides. For contractors, it might involve fuel spills, paint or chemical runoff, or disturbing contaminated soil during excavation.
Standard general liability policies often exclude pollution related claims, so if your work involves chemicals, fuel, or excavation, this additional coverage is worth a conversation with your agent.
Umbrella Insurance
Even with solid general liability and commercial auto coverage in place, a single catastrophic claim can exceed your policy limits. A commercial umbrella policy provides an additional layer of liability protection above your underlying policies, often at a relatively affordable price.
For contractors working on large projects or landscapers servicing commercial properties, umbrella coverage is a smart investment that can protect your business from being wiped out by one large claim.
Before Your Busy Season Starts, Ask Your Agent
This list can act as a good starting point when reviewing your coverage with your independent agent:
- Have you added any new employees or subcontractors since your last policy review?
- Have you purchased new equipment or vehicles that need to be added to your policy?
- Are you taking on larger or higher risk projects this season that may require higher liability limits?
- Do your clients or contracts require specific coverage types of minimum limits?
- Is your equipment coverage limit still accurate given the current value of your tools and machinery?
- Do you have adequate coverage for subcontractors working under you?
Taking the time to answer these questions before the season gets busy can prevent costly surprises down the road.
Do Not Let A Coverage Gap Cost You The Season
Spring is an exciting time for contractors and landscapers. Business is picking up, crews are growing, and the work is out there waiting. But the busier you are, the greater your exposure. A single uncovered incident can set you back financially, damage your reputation, and disrupt your entire season.