Company insurance is intended to safeguard the financial assets of a business owner and is a vital investment for a landscape design firm.
This article will discuss the primary insurance coverage for landscape design firms, general liability insurance, as well as additional products that are appropriate for this industry.
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Landscape Design Companies Need General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
GENERAL LIABILITY INSURANCE MAY COVER COMMON SITUATIONS FOR A LANDSCAPE DESIGN BUSINESS
Example 1: A robber breaks into your yard and is bitten by your security dog. He has threatened to sue if his medical costs are not reimbursed. His medical expenses might be covered by general liability insurance.
Example 2: A prospective client comes to your office to obtain suggestions for a future project. While there, she falls over a rock exhibit, fracturing her wrist. If she decides to suit, her general liability insurance should pay her medical bills and other expenses.
Example 3: Your employee loses control of a rock while delivering it for a design project, causing damage to multiple portions of the driveway. Repairs should be covered by general liability insurance.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
Landscape design firms in the United States typically pay between $450 and $750 per year for $1 million in general liability coverage.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Types of Landscape Design Coverage Required by Businesses
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all landscape design company should have are as follows:
Insurance for Commercial Property
Commercial property insurance protects owned buildings and their contents in the event of a covered loss. To secure your company assets, you should review your business strategy and financial obligations with an insurance agent.
Commercial property insurance is often acquired in conjunction with a company owner’s coverage (BOP).
Insurance for Commercial Vehicles
Personal vehicle plans may not cover business-related losses; thus, a commercial auto coverage may be required. This insurance may cover the cost of repairing or replacing owned vehicles, medical expenses, and liability damages, depending on the coverages chosen.
Many people prefer to carry just the bare minimums mandated by the state, yet this leaves many people uninsured. As a result, purchase limitations that are greater than the state-mandated minimums are often advocated.
Commercial vehicle insurance may be purchased as part of a BOP or as a stand-alone policy.
Insurance for Inland Waterways
If you and your team move company-owned tools and equipment offsite, you may need an inland marine coverage. Commercial property insurance protects against loss at the insured site but excludes coverage while the insured is in transit or at another location. This coverage void is filled by inland marine insurance.
Coverage Options for Some Landscape Design Firms
In addition to the policies listed above, your landscape design firm may need other forms of coverage based on particular parts of your operations. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Insurance for Workers’ Compensation
Your state will demand a worker’s compensation coverage if your company has become large enough to recruit a crew. This covers medical expenditures incurred as a result of an on-the-job accident, missed income for employees, and legal counsel for the company owner in the event of a lawsuit.
Workers compensation insurance may be purchased separately.
Insurance for Business Interruption
If you suffer a commercial property loss, your company might suffer a significant financial setback. Business interruption insurance covers lost revenue and fixed expenses and helps the insured relocate to a temporary site while their claim is being resolved.
This insurance is often included in a business owners’ policy (BOP) package.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.