Insurance for landscapers and home service businesses
The more services you add, the more complicated your insurance gets. For many small service companies, doing one thing well is also the cheaper way to insure it.
What to watch for
Adding a service. A new trade can turn a maintenance policy into a construction policy.
Handyman work
Carriers do not want unlicensed people doing plumbing, electrical or HVAC work. A handyman who self-performs painting, carpentry, TV mounting, grab bars, ADA ramps or door changes is a better risk.
The 40% line
Subcontract more than 40% of your work to other contractors and you are classified as a general contractor, which needs very different coverage.
Subcontractors
Whoever you hire needs their own coverage and paperwork.
Vehicles and equipment
Trucks, trailers and tools carry their own exposures.
Coverage for this business
Every business is placed a little differently. These are the policies we talk through most often, and a conversation with Kristi will tell you which ones your business actually needs.
General liability
Damage and injury caused by your work.
Workers' compensation
Injuries to your crew.
Commercial auto
Trucks and trailers.
Tools and equipment
Mowers, trailers and tools.
Umbrella
Higher limits for larger jobs.
The landscaper who wanted to add fences
Years ago a young man with a landscaping and maintenance business wanted to add fencing. I told him that was construction, not maintenance, and would be a different policy. I asked what share of his revenue fencing would be. He said no more than 10%. I asked why he would do it, since it would raise his insurance cost significantly for 10% growth. Refer it out, and the fence company may start referring landscaping clients to you.
Questions we hear
The short versions of conversations Kristi has with business owners every week.
Why does adding a service raise my premium?
A different type of work is a different risk class. The cost can outrun the extra revenue.
Why do carriers see handyman work as high risk?
Because some handymen take on plumbing, electrical or HVAC work without a license. A handyman who sticks to work like painting, carpentry, mounting and small installs is a better risk.
How does a homeowner know the handyman's insurance will cover the job?
Ask for a certificate of insurance. Then call the agent on it and ask whether the policy covers the specific work you are hiring them to do.
What should my subcontractors carry?
Their own general liability and workers’ compensation, with certificates on file.
Ready to have someone in your corner?
Book a free consultation. We’ll walk through your business, identify the gaps, and build a strategy that actually fits.