For landscapers in Maryland, flawless lawns and gardens are works of art. But operating a prosperous landscaping business involves more than just mowing, planting, and pruning. It requires safeguarding your company, employees, and reputation from unforeseen risks. A vital shield against these perils is insurance. This guide will uncover what landscaper insurance may cost in Maryland, factors impacting expenses based on your business size, and variables influencing premiums.

Maryland landscapers must have the proper insurance protection for landscaping to operate legally in the state. This typically includes liability insurance for landscapers to safeguard against third-party claims and workers’ comp for landscaping companies to cover employee injuries sustained while on the job.

Key Statistics about Landscapers in Maryland

In Maryland, landscapers earn an average annual salary of $56,000. The hourly mean wage is $18.79. The top-paying metropolitan areas for landscapers in the state are Baltimore-Columbia-Towson at $19.67 per hour and Bethesda-Rockville-Frederick at $19.59 per hour.

Landscaping services in Maryland brought in $2.2 billion in revenue in 2021. The industry employs over 26,000 workers in the state. The sector’s wages have grown around 2% annually from 2016 to 2021.

Maryland has over 4,000 landscaping companies, with the highest concentration in populous counties like Montgomery, Prince George’s, Baltimore, and Anne Arundel. Most firms are small, with under $1 million in revenue. But the sector includes landscape maintenance giants like Brickman Group, BrightView, and TruGreen with operations throughout the state.

Leading landscaping trade associations in Maryland include the Chesapeake Green Industry Council, Maryland Nursery, Landscape & Greenhouse Association, and Professional Grounds Management Society. These groups offer educational programs, advocacy, networking, and access to discounted insurance plans.

Key Factors Influencing Insurance Costs

Your insurance costs will evolve as your Maryland-based landscaping business grows. Key factors impacting your coverage needs and premiums include:

Staff Size: More employees mean greater risks and insurance requirements. Workers’ compensation premiums directly correlate to payroll size.

Years in Business: Newer firms pay higher premiums until establishing a record of safety and claims experience. Long-term clients also signify reduced risks.

Revenue: Higher revenue signals expanded services, equipment, payroll, and risks, increasing premiums. But it also provides more budget for higher insurance limits.

Claims History: Frequent past claims drive costs up by indicating higher risks. A clean history keeps premiums affordable.

Services Offered: Specialized, dangerous services like tree removal warrant higher premiums than routine maintenance. Each service has distinct liabilities.

Coverage Limits: Higher liability limits or insured asset values mean larger potential payouts for insurers, increasing premiums. But lower limits may leave you underinsured.

Location: Operations in high theft, severe weather, or litigious regions have elevated premiums due to increased risks. But being near your client base can offset costs through efficiencies.

Equipment/Vehicles: More and higher value equipment and vehicles increase potential damages, raising premiums.

Subcontractor Use: Relying on uninsured subcontractors increases your liabilities. Requiring proof of their insurance helps mitigate risks.

Safety Record: Documented safety protocols like driver training signal reduced risks, lowering premiums. Lax safety produces frequent claims and costly premium hikes.

Premium Discounts: Factors like good credit, association memberships, and bundled policies may reduce your costs.

Insurer Loss Ratios: Carriers with loss ratios below 60% spend less on claims versus premiums collected, leaving room for lower pricing.

Small Landscaping Business Insurance Costs

For Maryland landscaping businesses with around $150,000 in annual revenue, 1 owner, and 1 employee, typical insurance policies and estimated premium ranges are:

General Liability

Low End: $500

High End: $2,300

Typical Limits: $500,000 to $1 million occurrence/$1 million to $2 million aggregate

Workers’ Compensation

Low End: $1,500

High End: $2,500

Typical Limits: Statutory limits per Maryland regulations

Inland Marine

$1,000 – $2,000

Typical Limits: $10,000 to $20,000 total insured value

Commercial Auto

$1,500 – $3,000 per vehicle

Typical Limits: $500,000 combined single limit

Business Owners Policy (BOP)

$2,000 – $4,000 annually

Typical Limits: $500,000 to $1 million

At this small scale, a Business Owners Policy (BOP) combining general liability and property coverage is common for simplicity and premium discounts. BOPs can include commercial auto too. Expect total yearly premiums around $3,500 – $8,000.

Medium Landscaping Business Insurance Costs

For medium Maryland landscaping companies with approximately $500,000 in revenue, 1 owner, and 3 employees, standard insurance policies and premium ranges are:

General Liability

Low End: $1,200

High End: $4,200

Typical Limits: $1 million to $2 million occurrence/aggregate

Workers’ Compensation

Low End: $4,400

High End: $7,200

Typical Limits: Statutory limits

Inland Marine

$2,500 – $5,000

Typical Limits: $25,000 to $50,000 total insured value

Commercial Auto

$1,500 – $3,000 per vehicle

Typical Limits: $500,000 to $1 million combined single limit

Umbrella Liability

$750 – $1,500

Typical Limits: $1 million

At this size, purchasing individual general liability, inland marine, commercial auto, workers’ comp, and umbrella liability policies is typical. However, BOPs are still an option. Expect total annual premiums around $12,000 – $25,000.

Large Landscaping Business Insurance Costs

For larger Maryland landscaping businesses with around $1 million in revenue, 1 owner, and 5 employees, typical insurance policies and estimated premium ranges are:

General Liability

Low End: $2,500

High End: $8,300

Typical Limits: $2 million to $5 million occurrence/aggregate

Workers’ Compensation

Low End: $7,300

High End: $11,200

Typical Limits: Statutory limits

Inland Marine

$5,000 – $10,000

Typical Limits: $50,000 to $100,000 total insured value

Commercial Auto

$1,500 – $3,000 per vehicle

Typical Limits: $1 million combined single limit

Umbrella Liability

$1,000 – $2,000

Typical Limits: $2 million to $5 million

Employment Practices Liability

$2,000 – $5,000

Typical Limits: $100,000 to $250,000

At this scale, purchasing individual general liability, inland marine, commercial auto, workers’ comp, umbrella, and employment practices liability policies is standard. Expect total annual premiums around $20,000 – $40,000.

Additional Insurance Coverages

Beyond core general liability, workers’ comp, and auto insurance, Maryland landscaping businesses should consider these additional policies:

Professional Liability: Protects against negligent work claims. Approximately $750 – $2,500 per year.

Pollution Liability: Covers bodily injury or property damage from chemical use. Around $750 – $2,500+ annually.

Commercial Property: Safeguards buildings, offices, warehouses from damage. About $2,000 – $10,000 yearly.

Cyber Liability: Shields against data breaches and hacking. Usually $500 – $2,000 annually.

Business Interruption: Replaces lost income if disasters halt operations. Typically $1,000 – $5,000 per year.

Commercial Crime: Protects against employee embezzlement and theft. Approximately $500 – $1,500 annually.

Directors & Officers Liability: Defends against claims alleging mismanagement. Around $2,000 – $5,000 per year.

Lawn Care Chemical Application Coverage: Added protection against overspray damages. An annual flat premium around $250 – $750.

How Insurers Determine Landscaper Premiums

Insurers analyze various factors about your Maryland landscaping business when pricing policies:

Industry Risk Profile: Landscapers are viewed as moderate risk compared to sectors like construction. But specialty services raise risks.

Location: Operations in high theft or severe weather regions have elevated premiums. Urban areas also see more claims.

Services Offered: Tree removal, irrigation system installation, snow removal, and other services have distinct liability risks affecting premiums.

Safety Protocols: Strong safety procedures like equipment maintenance logs, driver training programs, and hazardous chemical handling plans help secure lower premiums by demonstrating reduced risks.

Claims Experience: Frequent past claims drive premiums upward due to perceived higher risks. A clean loss run keeps premiums affordable.

Revenue: More revenue means larger perceived exposures, increasing premiums. Typically a percentage of gross receipts goes towards liability coverage.

Payroll: Higher payroll directly increases workers’ compensation premiums. Tightly managed payroll keeps costs controlled.

Subcontractor Use: Relying on uninsured subcontractors increases your liabilities. Requiring proof of their insurance helps mitigate risks and avoid premium hikes.

Equipment/Vehicles: More and higher value equipment and vehicles increase potential damages, raising premiums.

Credit History: Good credit correlates with responsibility and claims consciousness, resulting in discounted premiums.

Loss Ratios: Insurers spending less than 60% of premiums on claims can afford lower pricing.

Premium Discounts: Bundling policies, membership in trade groups, and being claim-free all may reduce costs.

Getting the Right Insurance for Your Maryland Landscaping Business

Finding optimal insurance for your Maryland landscaping company requires an agent familiar with the sector’s unique risks. Work with a specialist who can access carriers tailored to landscapers. This allows customizing an affordable program providing adequate protection.

Key tips for landscaping contractors in Maryland seeking proper coverage include:

  • Review risks, assets, payroll, revenue, and coverage needs annually as your business evolves. Insurance limits can then be adjusted accordingly.

  • Ask about group plans from landscaper trade associations for premium discounts.

  • Know the loss ratio of insurers you’re considering. Below 60% often signals potential savings.

  • Implement strong risk management procedures like equipment logs, staff training programs, client contracts, and job site supervision. Documented safety protocols help secure lower premiums.

  • Discuss higher deductibles to reduce premiums, but ensure you can cover potential out-of-pocket costs.

  • Bundle policies with one carrier for multi-policy discounts. For instance, combine general liability, inland marine, commercial auto, umbrella, and workers’ comp.

  • Compare quotes from insurers specializing in landscapers to find optimal value. Prices can vary widely between carriers.

  • Consider managed provider networks for workers’ compensation. They provide quality medical care with reduced costs.

  • Ask about premium payment plans allowing installments versus lump sums to improve cash flow.

  • Have any exclusion clauses thoroughly explained to avoid surprise coverage gaps.

The Claim Process for Landscapers in Maryland

If an accident or incident occurs leading to an insurance claim by your Maryland landscaping business, follow these steps for effective claims management:

  • Report the claim immediately to your agent and insurance company. Delayed notification can invalidate policies.

  • Cooperate fully with your insurer’s investigation. Provide all necessary documentation and data requested.

  • For liability claims, let your insurer contact the third party. Refrain from admitting fault or agreeing to any settlements.

  • Keep detailed records related to the claim such as photos, contractor estimates, and witness accounts. Supply these to your insurer.

  • For damaged equipment, provide copies of receipts and ownership documentation if needed by the insurer.

  • Ask about claim reimbursements, actual cash value, replacement costs, and the appeals process. Understand how claim payouts are calculated.

  • Obtain a copy of the claims adjuster’s report for your records when the process concludes.

  • Implement any recommended risk management measures from your insurer to help prevent similar losses going forward.

Properly navigating the claims process reduces stress and facilitates maximum payouts you’re entitled to under your policy. Maintain open communication with your insurer throughout.

Conclusion

Insurance is vital for Maryland landscaping businesses looking to safeguard their company. Partner with a landscaping insurance expert who can access suitable carriers so you can get adequate, affordable coverage tailored to your evolving risks and business characteristics. Implement sound risk management practices. And maintain effective insurance so your business can continue flourishing without being uprooted by unexpected perils.