Running a lawn care business means juggling a lot of risks. You're hauling expensive equipment to multiple job sites every day. Your crew is operating power tools near customers' homes. One mishap—a broken sprinkler head, a crew member's injury, or stolen equipment—can cost thousands. That's where having the right insurance comes in.
But here's the thing: most lawn care business owners don't need every insurance policy under the sun. What you need is a smart checklist that covers the essentials, helps you understand what's optional, and guides you on when to add coverage as your business grows. This guide walks you through exactly that.
Essential Coverage: What Every Lawn Care Business Must Have
These three coverages aren't just recommended—they're typically required by law, contracts, or both.
General Liability Insurance is non-negotiable. This is the policy that protects you when your work damages someone's property or injures a customer. Maybe your mower throws a rock through a window. Maybe a client trips over your extension cord and breaks an arm. General liability covers the medical bills, legal fees, and property repairs. Most commercial clients and even many homeowners will ask to see proof of this coverage before you start work. The good news? It's affordable, averaging around $51 per month for lawn care businesses.
Workers' Compensation Insurance becomes mandatory the moment you hire your first employee. This coverage pays for medical expenses, rehabilitation, disability, and lost wages if a crew member gets hurt on the job. Lawn care is physical work with real injury risks—from back strains to equipment accidents. Workers' comp protects both your employees and your business from devastating lawsuits. Expect to pay around $137 per month per employee on average, though costs vary significantly by state. For example, North Dakota charges about $1.45 per $100 of payroll while New Jersey runs closer to $5.22.
Commercial Auto Insurance is required in most states if you're using vehicles for business purposes. This includes your truck, trailer, and any riding mowers you're hauling. It covers property damage and medical expenses from accidents involving your business vehicles. Here's what surprises people: your personal auto policy won't cover business use. If you get into an accident while driving to a job site with a trailer full of equipment, your personal insurance can deny the claim. Commercial auto averages about $185 per month, and it's worth every penny for the protection it provides.
Optional But Highly Recommended Coverage
These coverages aren't legally required, but they protect you from common risks that could otherwise sink your business.
Tools and Equipment Insurance (also called inland marine insurance) covers your mowers, trimmers, blowers, and other equipment whether it's at a job site, in transit, or stored in your truck. Equipment theft is common in this industry, and commercial auto insurance doesn't typically cover tools and equipment stored in or on your vehicles. For about $38 per month, this policy protects items valued under $10,000 from theft, damage, and loss. If someone breaks into your truck and steals your commercial mower, this coverage responds.
Commercial Property Insurance makes sense if you have a shop, office, or storage facility. It covers your building and its contents from fire, theft, vandalism, and certain natural disasters. If you're storing equipment valued at more than $10,000 or have a dedicated business location, this coverage protects your physical assets.
Pollution Liability Insurance is crucial if you apply pesticides, herbicides, or fertilizers. Standard general liability policies often exclude pollution-related claims. If you accidentally contaminate a client's well or cause environmental damage from chemical application, pollution liability steps in. Many municipalities and commercial clients require this coverage for pesticide applicator licenses.
Business Owner's Policy (BOP) bundles general liability and commercial property insurance into one package, often at a discount. Small, low-risk lawn care operations can get a BOP for around $84 per month. It simplifies your coverage and can save money compared to buying policies separately.
When to Add or Adjust Coverage
Your insurance needs aren't static. Here's when you should revisit and adjust your coverage:
When you hire your first employee: Workers' compensation becomes mandatory immediately. Don't wait. Some states impose heavy fines for operating without it.
When you buy new equipment: Update your tools and equipment insurance to reflect the current value of your gear. An expensive zero-turn mower or commercial-grade equipment should be specifically listed on your policy.
When you start offering chemical services: Add pollution liability coverage before your first fertilizer or pesticide application. This is often required for licensing and protects you from environmental claims.
When you expand your service area: Some policies have geographic limits. If you're moving from residential neighborhoods to commercial properties or crossing state lines, notify your insurer.
When your revenue grows significantly: Your liability limits should grow with your business. If you're landing larger commercial contracts, consider increasing your general liability limits from $1 million to $2 million or adding an umbrella policy for extra protection.
Your Annual Insurance Review Checklist
Set a reminder to review your coverage every year. Here's what to check:
Verify your equipment inventory is accurate and values are current. Update your tools and equipment policy to reflect new purchases or sold items. Review your employee count and payroll for workers' compensation accuracy—undereporting can leave you exposed or lead to premium adjustments later. Check that your liability limits still match your contracts and client requirements. Many commercial clients require minimum coverage amounts. Confirm your coverage includes all services you're currently offering, especially if you've added snow removal, tree work, or chemical applications. Compare quotes from at least two other insurers to ensure you're getting competitive rates.
The lawn care industry has an average insurance cost of $40 to $70 per month for small operations, but prices vary based on your location, payroll, and services. Shopping around annually can save hundreds of dollars without sacrificing protection.
Getting Started: How to Buy Lawn Care Insurance
Start by gathering basic business information: your estimated annual revenue, current payroll, number of employees, list of equipment and values, services you offer, and your service area. This information helps insurers quote accurately.
Get quotes from at least three providers. Many insurers specialize in lawn care and landscaping businesses, including NEXT Insurance, Progressive Commercial, The Hartford, and Insureon. Compare not just prices, but coverage limits, exclusions, and customer reviews.
Don't just buy the minimum required coverage. While it's tempting to save money upfront, inadequate coverage can bankrupt your business if something goes wrong. A $1 million general liability policy costs only slightly more than a $500,000 policy, but provides double the protection.
Insurance isn't the most exciting part of running a lawn care business, but it's one of the most important. The right coverage lets you focus on growing your business instead of worrying about what could go wrong. Start with the essentials—general liability, workers' comp, and commercial auto—then add equipment and specialized coverage as your business evolves. Review annually, adjust as needed, and you'll have protection that grows with you.
