Below we've summarized lawn and landscaping business insurance needs and recommended coverage amounts for each type.
What Insurance Do You Need For a Lawn and Landscaping Business?
General liability, workers' compensation, commercial auto and professional liability are the most important insurance types for landscaping businesses.
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Updated: February 2, 2026
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Lawn and Landscaping Business Insurance Requirements: Key Takeaways
General liability insurance is the most critical coverage for lawn and landscaping companies due to high property damage and injury claim risks. (Read More)
Lawn and landscaping businesses commonly require workers' compensation, commercial auto and general liability insurance mandated by law or contract. (Read More)
Optional coverage lawn and landscaping businesses should consider includes tools and equipment, pollution liability and professional liability insurance.
To ensure compliance, get a COI from your insurer, verify your policy meets requirements, send proof to the right place and maintain continuous coverage. (Read More)
What Insurance Types Are Needed For a Lawn or Landscaping Business?
Covers third-party bodily injury and property damage from lawn and landscaping operations, including rocks thrown by mowers, damaged sprinkler systems and slip-and-falls on wet grass. Most commercial clients require this coverage before you can start work on their property. | Most lawn and landscaping businesses need $1 to $2 million per occurrence or $2 to $3 million aggregate. Commercial clients typically require $2 million aggregate minimum. | A mower threw a rock that shattered a client's $800 window and damaged a parked car for $3,200, with another $1,500 in siding damage. General liability covered all $5,500 plus legal fees. | |
Required by law in most states once you hire your first employee. Covers medical costs and lost wages for heat exhaustion, back injuries from lifting equipment and accidents involving mowing equipment. | Your state sets the minimum coverage amount. Most lawn and landscaping businesses pay $800 to $2,500 annually per employee. | An employee suffered heat exhaustion requiring hospitalization, racking up $18,000 in medical bills and $3,200 in lost wages during four weeks of recovery. Workers' compensation covered all $21,200, protecting the employee and business from financial hardship. | |
Required by law in 49 states for business-owned vehicles and trailers. Covers accidents involving work trucks, equipment trailers and damage you cause while transporting mowers to job sites. | A $1 million combined single limit with comprehensive and collision coverage satisfies most state and client requirements. Businesses operating multiple vehicles may need $2 million in coverage. | A work truck pulling an equipment trailer jackknifed in rain, causing $28,000 in vehicle damage, $15,000 for a destroyed mower, $8,000 in trailer damage and $12,000 in medical bills. Commercial auto covered all $63,000 with a $1,000 deductible. | |
Covers mowers, trimmers, edgers, blowers and other equipment stolen from vehicles or damaged during transport. This inland marine coverage protects your equipment at job sites, in transit and during temporary storage at client locations. | Carry $15,000 to $50,000 depending on your equipment value. Businesses with multiple crews need $75,000 to $100,000. | Thieves stole $22,000 in equipment from a work trailer including two mowers ($16,000), trimmer ($800), edger ($600), blower ($400) and hand tools ($4,200). Equipment insurance reimbursed the full amount within 10 days, preventing business disruption during peak season. | |
Pollution Liability Insurance | Covers claims from fertilizer, pesticide or herbicide spills that damage client property, contaminate water or harm vegetation. General liability policies typically exclude pollution coverage, making this separate policy necessary for chemical application. | We recommend $1 million per occurrence for basic services. Businesses performing extensive pesticide applications near water sources should carry $2 million. | Pesticide overspray killed $15,000 worth of a neighbor's rose garden, contaminated vegetable beds requiring $8,000 in soil remediation and caused $5,000 in lost plant sales. Pollution liability covered all $28,000 plus legal defense costs. |
Protects landscaping businesses from claims of negligent design, incorrect grading causing drainage problems, improper plant selection and irrigation failures. Covers your financial responsibility when design or installation errors require expensive corrections. | Landscape design and installation services need $500,000 to $1 million per claim. Businesses handling large commercial projects should carry $2 million. | A designer specified shade plants for a sunny location, causing $18,000 in plant die-off, $12,000 for replacement plants and $8,000 in re-installation labor. Professional liability covered the $38,000 claim, saving the business from bankruptcy. | |
Lawn and Landscaping Business Insurance Requirements
The table below summarizes business insurance requirements for lawn and landscaping companies mandated by state law and client contracts. Requirements vary by state, business size and contract type.
Workers' Compensation Insurance | Required by law in most states once you hire your first employee, with penalties including fines up to $10,000 per employee, criminal charges, business license suspension and personal liability for all injury costs. Most states don't allow exceptions for family members or seasonal workers. | The minimum coverage amount is set by your state. Lawn and landscaping businesses typically pay $800 to $2,500 annually per employee depending on job classification. |
Commercial Auto Insurance | Required by law in 49 states for business-owned vehicles and trailers, as personal auto policies exclude commercial use. Operating without coverage results in license suspension, vehicle impoundment and personal liability for accident costs. | State minimums range from 25/50/10 to 30/60/25 split liability limits. Most lawn and landscaping businesses carry $1 million combined single limit to satisfy legal and client requirements. |
General Liability Insurance | Most commercial clients including property management companies, homeowners associations, office parks and municipalities require this coverage before you can work on their property. Contracts often require adding the client as an additional insured on your policy. | The industry standard is $1 million per occurrence and $2 million aggregate. High-value commercial clients and luxury residential properties may require $3 to $5 million in total coverage. |
Pesticide Applicator Insurance | Many states require proof of liability insurance to obtain and maintain a commercial pesticide applicator license for fertilizer, herbicide and pesticide application. State departments of agriculture verify coverage before issuing or renewing licenses. | Most states require $300,000 to $500,000 in liability coverage for pesticide application. Some states mandate separate pollution liability with $1 million minimum limits. |
Required for government contracts, municipal landscaping projects and many large commercial clients to guarantee project completion. Performance bonds guarantee work completion while payment bonds protect subcontractors and suppliers. | Bond amounts typically range from 50% to 100% of contract value. Government contracts under $150,000 often require $10,000 to $25,000 bonds, while larger projects may require $100,000 to $500,000. | |
Landlords require this coverage for businesses leasing commercial space for equipment storage or shop operations. Lenders require coverage for financed properties, with lease agreements and loan documents specifying insurance requirements. | Coverage amounts are based on building and contents replacement cost, ranging from $50,000 to $500,000. Lenders typically require coverage equal to the outstanding loan amount. | |
Luxury residential clients, corporate headquarters, large property management companies and premium venues require this as an add-on to existing liability limits. High-value contracts specify minimum total coverage amounts including umbrella limits. | High-value commercial clients typically require $3 to $5 million in total coverage. Premium residential clients and luxury venues may require $5 to $10 million including umbrella coverage. | |
How To Ensure Lawn and Landscaping Business Insurance Requirements Are Met
Below is a step-by-step guide for maintaining compliance with lawn and landscaping insurance requirements after purchasing coverage. This covers proving coverage to clients, state licensing authorities and maintaining required policies over time.
- 1Request Certificates of Insurance (COI) and maintain digital files
After purchasing lawn and landscaping insurance policies, request a Certificate of Insurance from each insurer and save digital copies to your mobile device for instant access during client meetings and bid submissions. Most providers offer instant download or email delivery within minutes, allowing you to submit proof when landing commercial accounts or responding to RFPs.
- 2Submit insurance proof to state licensing authorities and register bonds
Lawn and landscaping businesses must submit insurance certificates to state departments of agriculture for pesticide applicator licenses and to municipalities for business licenses. Government contracts require registering performance and payment bonds with the contracting agency, typically within 10 days of contract award before work starts.
- 3Add clients as "additional insured" and update vehicle insurance documentation
Commercial contracts require adding the client as an additional insured on your general liability policy before starting work, with endorsements costing $25 to $50 per client. Update commercial auto insurance cards in all work vehicles and notify your state DMV or DOT of coverage changes for vehicle registration compliance.
- 4Distribute updated COIs annually to contract clients before spring season
Send updated certificates to all contract clients in February or March, before your spring schedule kicks off. Most property managers and HOAs won't authorize your first mowing until they have current proof of insurance, and outdated paperwork means lost revenue while competitors take your slots.
- 5Maintain coverage for equipment financing and set renewal reminders
Businesses financing mowers or equipment must keep lenders listed as loss payee on equipment insurance policies and provide annual proof of coverage to avoid loan default. Set calendar reminders 60 days before policy renewals to obtain updated COIs and distribute them to clients, licensing authorities and lenders.
Get Business Insurance You Need For Your Lawn and Landscaping Business
You can get matched to the best lawn and landscaping business insurance company for your needs using our tool below. We recommend comparing quotes from multiple insurers, researching coverage costs for seasonal operations and evaluating providers experienced with equipment-intensive businesses.
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About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.