Why Is Insurance Coverage Required By Commercial Landscaping Services?

Commercial and industrial property owners or managers requesting RFPs or accepting bids for landscaping services need to be aware of the importance of insurance issues.

There is industry standard insurance coverage required by commercial landscaping services. Even though it is required, some companies do not have insurance, or they are not fully insured. This can potentially add to the liability of the customer, impacting the insurance on the commercial or industrial property if there is an accident or injury while the landscaping contractors are on the property or while they are completing their work.

The Basics

The insurance coverage required by commercial landscaping services will be slightly different based on location and the types of services provided. As a good guideline, ask the company specifically about the insurance they carry.

It is a good idea, as with all contractors, to ensure the insurance coverage required by commercial landscaping meets the minimum standards. This will include general liability insurance, with most companies carrying at least a million-dollar policy. It is also a good idea to verify the contractor for the commercial landscaping bid also has worker’s compensation coverage.

General Liability

While accidents resulting in injuries are the most significant and concerning there is always the risk of damage to property if heavy equipment and large trees or other landscaping elements are being removed, installed or both.

Heavy equipment such as bulldozers, backhoes, and cranes can potentially result in damage to driveways, walkways, irrigation systems, electrical wiring, plumbing, existing landscaping elements or even more significant damage to buildings, pools, decks, patios or other outdoor areas.

It is also a wise decision to ask the commercial landscaper about any claims history. Top companies will typically have extremely limited if any claims history through their insurance, which is a key indicator of a safety-first focus.