Business Insurance for Landscape Design Businesses

Business insurance is designed to protect a business owner's financial assets and is an essential investment for a landscape design business.

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About General Liability Insurance

All businesses, regardless of industry, face risks that should be covered by insurance. The most common and comprehensive type of policy business owners invest in is general liability insurance (or CGL).

Some of the risks CGL insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

While businesses aren't legally required to carry general liability insurance, operating without it is extremely risky. If your business is sued, you could end up facing fees totaling hundreds of thousands of dollars (or more). Having a sufficient CGL policy in place to help compensate for these damages is the only way to prevent this type of event from devastating your business.

Learn more about the risks covered by general liability insurance.


Example 1: A thief breaks into your yard and your guard dog bites him. He threatens a lawsuit if his medical bills are not paid for. General liability insurance could cover his medical costs.

Example 2: A potential customer visits your office to get ideas for an upcoming project. While there, she trips over a display of rocks, breaking her wrist. General liability insurance should cover her medical bills, and additional costs, should she decide to sue. 

Example 3: While delivering a boulder for a design project, your employee loses control of it, causing damage to several sections of the driveway. General liability insurance should pay to repair the damage.

Of course, this is not an exhaustive list of perils a general liability insurance policy will cover, and some conditions may result in a particular peril not being covered. It's always best to talk to your agent in-depth about the specifics of your policy to avoid blind spots in coverage.

Cost Of General Liability Insurance

On average, landscape design businesses in America spend between $450 - $750 per year for $1 million in general liability coverage.

Check out the chart below for a snapshot of average CGL expenditure across a variety of industries:

Graph showing average price of general liability insurance prices per industry

Several factors will determine the price of your policy. These include your:

  • Location
  • Deductible
  • Number of employees
  • Per-occurrence limit
  • General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner's policy (BOP) rather than as a standalone policy. A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

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Other Types Of Coverage Landscape Design Businesses Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all landscape design businesses should obtain:

Commercial Property Insurance

Commercial property insurance provides coverage for owned buildings and its contents, should a covered loss occur. You should discuss your business model and financial responsibilities with an insurance agent to protect your business investments.

Commercial property insurance is generally purchased as part of a business owner’s policy (BOP).

Commercial Auto Insurance

Personal auto policies exclude business-related losses, it may be necessary to purchase a commercial auto policy. Depending upon the coverages written, this policy could cover the cost to repair or replace owned autos, medical payments, and liability damages.

Many choose to carry only the minimum limits required by the state, but this leaves many underinsured. For this reason, purchasing limits higher than the state-mandated minimums is often recommended.

Commercial auto insurance is available as part of a business owners’ policy (BOP) or as a standalone policy.

Inland Marine Insurance

If you and your team take business-owned tools and equipment offsite, an inland marine policy may be necessary. Commercial property insurance covers against loss at the insured location but limits the coverage while in transit or at another property. Inland Marine Insurance fills this coverage gap.

Types Of Coverage Some Landscape Design Businesses May Need

In addition to the policies outlined above, there are a few other types of coverage your landscape design business may require depending on certain aspects of your operations. Some of these might not apply to you, so be sure to ask your agent which policies are right for your business.

Workers Compensation Insurance

Once your business has grown enough to hire a team, your state will require a worker's compensation policy. This covers medical bills associated with an on-the-job injury, employee lost wages, and legal representation for the business owner, in the case of a lawsuit.

You can purchase workers compensation insurance as a standalone policy.

Business Interruption insurance

If you experience a commercial property loss, your business could face a serious financial setback. Business interruption insurance provides loss of income and fixed expense coverage and assists in moving the insured to a temporary location while their claim is being settled.

This insurance is generally offered as part of a business owners’ policy (BOP) package.

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it should not be your frontline defense. Yes, insurance will compensate for your business’ financial losses after an incident occurs, but it’s much better to avoid losses altogether.

With this in mind, here are three things you can do to better protect your business:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up a limited liability company (LLC) or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
  • Stay up to date with business licensing.
  • Streamline your business’ internal processes. This will remove unnecessary variables from common tasks and create a safe, consistent environment for conducting business.

Steps After Getting Business Insurance

Depending on where you are in your business building process, here are some other actions you may need to take before getting started:

Frequently Asked Questions

What is included in a business owner’s policy?

A typical business owner's policy includes general liability, business interruption, and property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company's needs.

What is the difference between business insurance and general liability insurance?

"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.

Do I need insurance before I start a business?

You should invest in coverage for your business before your first interaction with a customer. Although the cost of insurance may seem high for a brand new business, it's best to be proactive when it comes to protecting your assets. After all, you can't buy insurance to cover a loss that has already occurred.

Will insurance protect my business from everything?

Not necessarily. Certain exceptions may be written directly into your policy, and some perils may be entirely uninsurable. Be sure to discuss the scope of your policy in-depth with your agent to avoid being blindsided by holes in your coverage.

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