Here's something that catches most new lawn care business owners off guard: Texas doesn't actually require you to carry insurance. No workers' comp mandate. No minimum liability coverage. Technically, you could start mowing lawns tomorrow with nothing but a truck and a mower. But here's the reality check—you won't get far without insurance, and going bare could cost you everything if something goes wrong.
Most commercial clients and HOAs won't even talk to you without proof of insurance. And when a rock from your mower cracks a customer's window or one of your crew members gets hurt on the job, the lack of coverage becomes a business-ending problem. Let's break down what you actually need to protect your lawn care business in Texas.
What Texas Law Actually Requires
The short version? Almost nothing. Texas is one of the few states that doesn't mandate workers' compensation insurance, even if you have employees. For basic lawn mowing and maintenance services, you don't need a state license either. You'll register your business with the Texas Secretary of State if you're forming an LLC or corporation, or with your local county clerk if you're operating as a sole proprietor.
However, the licensing picture changes if you offer specialized services. If you're applying restricted-use or state-limited-use pesticides, you need a Commercial Pesticide Applicator license from the Texas Department of Agriculture. If you're installing or maintaining irrigation systems, you need an Irrigator License from the Texas Commission on Environmental Quality (TCEQ), which must be renewed every three years with continuing education credits.
Local requirements can add another layer. Cities like Houston have stricter licensing requirements for landscaping services, and larger projects may require construction or contractor permits. Always check with your city and county to make sure you're compliant with local ordinances before you start operating.
Why You Need Insurance Even Though It's Optional
Just because you can skip insurance doesn't mean you should. The lawn care business comes with serious risks. A rock flies out from under your mower and shatters a car window. Your crew member slips on wet grass and breaks an arm. A hedge trimmer nicks a gas line. These aren't hypothetical scenarios—they happen regularly in this industry.
Without general liability insurance, you're personally liable for property damage and bodily injury claims. A single lawsuit could drain your savings and force you to shut down. And if you skip workers' compensation insurance in Texas, your employees can sue you directly for workplace injuries. That's why about 90% of Texas landscapers still carry workers' comp even though it's optional—the liability exposure is just too high.
Beyond the legal protection, insurance opens doors. Most commercial property managers, HOAs, and municipal contracts require proof of insurance before they'll even consider your bid. No certificate of insurance means no contract. For many lawn care businesses, commercial clients make up the bulk of reliable, recurring revenue, so going without coverage effectively locks you out of the most profitable segment of the market.
Essential Coverage Types for Texas Lawn Care Businesses
General liability insurance is your foundation. This covers third-party bodily injury and property damage claims, plus legal defense costs if you get sued. Industry standard is $1 million per occurrence with a $2 million aggregate limit. Most Texas lawn care businesses pay between $500 and $1,800 per year for general liability coverage, with the average landing around $550 annually. That breaks down to about $46 per month—less than a single mowing job for most operators.
Commercial auto insurance is non-negotiable if you're using trucks to haul mowers and equipment between job sites. Your personal auto policy won't cover business use, and if you get into an accident while working, you could face denied claims and policy cancellations. Commercial auto covers your vehicles, trailers, and the equipment you're hauling.
Workers' compensation insurance protects both you and your employees. If someone gets hurt on the job, workers' comp covers their medical bills and lost wages without them having to sue you. In Texas, where this coverage is optional, having it demonstrates professionalism and protects you from potentially catastrophic injury lawsuits. Many larger clients won't hire lawn care companies that don't carry workers' comp.
Inland marine insurance covers your equipment when it's being moved between job sites or stored in your truck overnight. Mowers, edgers, blowers, and trimmers add up to thousands of dollars in equipment value. If your trailer gets stolen or your equipment is damaged in transit, inland marine insurance replaces it.
If you're applying fertilizers, herbicides, or pesticides, pollution liability insurance protects you from environmental damage claims. Chemical runoff into a storm drain or accidental overspray on a neighbor's garden could trigger expensive cleanup costs and lawsuits. This specialized coverage handles those scenarios.
What Commercial Clients Typically Require
When you bid on commercial contracts in Texas, expect clients to ask for a certificate of insurance showing specific minimum coverage amounts. The most common requirement is $1 million in general liability coverage per occurrence. Some larger properties or municipal contracts may require $2 million or even $5 million in coverage.
Many clients will also require proof of workers' compensation insurance if you have employees, along with commercial auto insurance if you're bringing vehicles onto their property. They may ask to be named as an additional insured on your policy, which gives them direct protection under your coverage if they get sued over something your company did.
Read your contracts carefully. Some specify that coverage must be in place before work begins, and your insurance company needs to notify the client if your policy is cancelled or not renewed. Missing these requirements can void your contract and leave you without payment for completed work.
How to Get Coverage and What It Costs
Shopping for lawn care insurance in Texas is straightforward. You can work with an independent insurance agent who specializes in commercial coverage, or you can get quotes directly from carriers that focus on small business insurance. Be prepared to provide details about your revenue, number of employees, types of services you offer, and equipment values.
Your premium depends on several factors. A solo operator doing basic mowing will pay less than a crew of five doing full-service landscaping with chemical applications. Higher revenue means higher premiums. More employees mean higher workers' comp costs. Working in high-traffic urban areas may cost more than serving rural properties.
As a ballpark, expect to budget at least $50 to $150 per month for basic general liability coverage as a solo operator or small crew. Add commercial auto, workers' comp, and equipment coverage, and you're looking at total insurance costs ranging from $1,500 to $5,000 annually for a small to mid-sized operation. That might sound steep, but it's a fraction of what a single uninsured claim could cost you.
Getting Started with Your Texas Lawn Care Business
Start by registering your business entity with the state or your local county clerk. Decide whether you need any specialized licenses based on the services you'll offer—pesticide application and irrigation work both require state licensing. Then get your insurance in place before you take on your first client.
Once you have coverage, request certificates of insurance from your carrier. You'll need these to bid on commercial jobs and satisfy client requirements. Keep digital and physical copies handy—you'll be sending them out regularly. Review your policies annually to make sure your coverage grows with your business. As you add employees, expand services, or increase revenue, your insurance needs will change.
Texas gives you the freedom to run a lawn care business without mandatory insurance, but that freedom comes with risk. The smart move is treating insurance as a necessary cost of doing business, not an optional expense. It protects your livelihood, opens up better clients, and gives you peace of mind when you're out there working. Get covered before you need it, because once something goes wrong, it's too late.
