For North Dakota landscapers, a vibrant, healthy lawn is a work of art. But operating a flourishing landscaping business involves more than mowing straight lines and pruning shrubs. It requires safeguarding your company, employees, and reputation from unexpected hazards. A vital shield against these risks is proper insurance coverage. This guide will uncover projected landscaper insurance expenses in North Dakota, variables impacting costs based on your firm’s size and stage, and factors influencing premiums. We’ll also provide tips on optimizing your insurance program.

For landscapers in North Dakota, having the appropriate landscaping insurance coverage is crucial. This typically includes liability protection for landscapers to safeguard against third-party claims and workers’ comp coverage for landscaping companies to cover employee injuries sustained while working.

Key Statistics about Landscapers in North Dakota

  • Median Salary for Landscapers in ND: $50,000
  • Number of Landscaping Businesses in ND: Over 400
  • Typical Services Offered:
    • Lawn care – mowing, fertilizing, seeding, aerating, weed/pest control
    • Planting – trees, shrubs, flowers, vegetables
    • Hardscaping – patios, walkways, retaining walls, outdoor kitchens
    • Snow removal
    • Landscape design
    • Irrigation system installation
  • Main Insurance Policies Needed:
    • General liability – protects against third party bodily injury and property damage claims
    • Workers’ compensation – covers injuries employees sustain on the job
    • Commercial auto – safeguards vehicles used for business purposes
    • Inland marine – insures tools and equipment onsite and in transit
    • Professional liability – shields against errors, omissions, or failure to deliver contracted services
    • Cyber liability – protects against data breaches and hacking
    • Pollution liability – covers improper use of chemicals like pesticides
    • Employment practices liability – protects against employment lawsuits
    • Business owner’s policy – bundles property and liability coverages
  • Average Insurance Costs:
    • $150k Revenue Landscaper:
    • General liability – $800 to $2,100
    • Workers’ compensation – $700 to $1,300
    • $500k Revenue Landscaper:
    • General liability – $2,700 to $5,000
    • Workers’ compensation – $2,200 to $3,600
    • $1M Revenue Landscaper:
    • General liability – $5,500 to $10,700
    • Workers’ compensation – $3,700 to $5,700

Key Factors Influencing Insurance Costs

Your insurance needs and premiums will evolve as your North Dakota landscaping business expands. Key factors impacting costs include:

  • Staff Size: More employees mean greater risks and insurance requirements. Each additional worker raises your general liability and workers’ compensation exposure.

  • Years in Business: Seasoned companies with long operating histories often present lower risks to insurers, resulting in reduced premiums. Newer ventures pay higher prices.

  • Revenue: As your annual revenue grows, you take on more and larger projects. This increased exposure raises the likelihood of claims, boosting premiums.

  • Claims History: Frequent past claims drive costs upward. A clean history with few or no claims keeps premiums affordable.

  • Services Offered: Specialized or dangerous services like tree removal or use of hazardous chemicals can heighten risks and increase premiums. Routine mowing and planting present lower hazards.

  • Equipment/Assets: Insuring expensive business property, tools, vehicles, and equipment leads to higher premiums due to greater potential losses.

  • Location: Areas prone to severe weather like hailstorms or extreme winters may have elevated premiums due to higher property damage risks.

  • Deductible Levels: Choosing higher deductibles reduces premiums but increases your costs if a claim occurs. Evaluate this option carefully based on your risk tolerance.

  • Discounts: Bundle policies, maintain strong safety protocols, join trade groups, and utilize other discount opportunities to control premium costs.

Small Landscaping Business Insurance Costs

For landscapers with around $150,000 in annual revenue, 1 owner, and 1 part-time employee in North Dakota, typical insurance policies and estimated premium ranges are:

General Liability

  • Covers third-party bodily injury and property damage claims stemming from your business operations should you be deemed legally liable. Provides coverage for legal defense expenses.

  • Recommended limits: $1M per occurrence/$2M aggregate. Per occurrence covers each individual incident, while aggregate covers total claims over the policy period.

  • Estimated annual premium: $800 to $2,100

Workers’ Compensation

  • Covers medical expenses and lost wages for employees injured on the job. Generally required for all businesses with staff.

  • Policy limits mandated by North Dakota. Provides unlimited benefits, but coverage levels and claims processes follow state rules.

  • Estimated annual premium: $700 to $1,300

Commercial Auto

  • Safeguards vehicles used for business purposes like work trucks, even for personal errands and commuting. Without it, drivers must rely on personal auto insurance which may not cover landscaping equipment.

  • Recommended limits: $500k combined single limit preferred to cover bodily injury, property damage, and uninsured/underinsured drivers. Higher limits recommended if transporting expensive equipment.

  • Estimated annual premium: $1,000 to $2,500 per vehicle

Inland Marine (Equipment Coverage)

  • Protects physical equipment and tools used for your landscaping business against hazards like theft, vandalism, fire, and natural disasters. Covers these assets at work sites, in vehicles, and in storage.

  • Suggested limits: $10k to $25k in total equipment coverage. Can have lower per item limits, such as $1k per piece of equipment. Match coverage to your gear value.

  • Estimated annual premium: $750 to $2,000

Professional Liability

  • Optional coverage shielding your business if accused of mistakes, negligence claims, or failing to deliver contracted services. Provides important protection for your reputation.

  • Recommended limits: $250k to $500k per claim/aggregate.

  • Estimated annual premium: $400 to $1,000

Medium Landscaping Business Insurance Costs

For landscapers with around $500,000 in annual revenue, 1 owner, and 3 full-time employees in North Dakota, typical policies and estimated premium ranges are:

General Liability

  • Recommended limits: $1M per occurrence/$2M aggregate

  • Estimated annual premium: $2,700 to $5,000

Workers’ Compensation

  • State-required coverage limits

  • Estimated annual premium: $2,200 to $3,600

Commercial Auto

  • Recommended limits: $500k combined single limit

  • Estimated annual premium: $1,250 to $3,000 per vehicle

Inland Marine

  • Suggested limits: $25k to $50k

  • Estimated annual premium: $1,000 to $3,000

Professional Liability

  • Recommended limits: $500k per claim/aggregate

  • Estimated annual premium: $750 to $2,500

Cyber Liability

  • Protects against data breaches, hacking, and electronic theft. Crucial for landscapers using technology to run their business.

  • Suggested limits: $500k to $1M per claim/aggregate

  • Estimated annual premium: $500 to $1,500

Large Landscaping Business Insurance Costs

For landscapers with around $1,000,000 in annual revenue, 1 owner, and 5 full-time employees in North Dakota, typical policies and estimated premium ranges are:

General Liability

  • Recommended limits: $1M per occurrence/$2M aggregate

  • Estimated annual premium: $5,500 to $10,700

Workers’ Compensation

  • State-required coverage limits

  • Estimated annual premium: $3,700 to $5,700

Commercial Auto

  • Recommended limits: $1M combined single limit

  • Estimated annual premium: $2,000 to $4,000 per vehicle

Inland Marine

  • Suggested limits: $50k to $100k

  • Estimated annual premium: $2,000 to $4,000

Professional Liability

  • Recommended limits: $1M per claim/aggregate

  • Estimated annual premium: $1,500 to $3,500

Cyber Liability

  • Suggested limits: $1M per claim/aggregate

  • Estimated annual premium: $1,000 to $2,500

Pollution Liability

  • Covers third-party property damage and bodily injury from improper use or release of chemicals like fertilizers, pesticides, and herbicides. Important for landscapers using these hazardous materials.

  • Recommended limits: $500k to $1M per claim/aggregate

  • Estimated annual premium: $1,500 to $3,000

Additional Insurance Coverages

Beyond the core policies above, additional insurance options North Dakota landscapers may need include:

Employment Practices Liability – Protects against employment lawsuits alleging discrimination, wrongful termination, sexual harassment claims, and more. Crucial for larger landscaping companies with multiple employees.

Commercial Property – Safeguards your business property like offices, storage facilities, fenced yards from theft, vandalism, fire, storms, and other risks. Ensure your building and contents are adequately protected.

Business Owner’s Policy – Bundles general liability, commercial property, and inland marine into one broad policy. Simplifies coverage and often comes with premium discounts.

Surety Bonds – Bonds act like a letter of credit, guaranteeing you’ll complete projects and pay subcontractors. Often required when bidding public sector landscaping jobs.

Business Interruption – Covers income lost if a covered cause of loss damages your premises and halts operations. Quickly recoups lost profits.

Builder’s Risk – Insures against property damage to a customer’s site while a project is under construction. Protects against storm damage, vandalism, material theft, and more. Crucial for large landscape construction projects.

How Insurers Determine Landscaper Premiums

Insurance carriers use various factors to calculate premiums for North Dakota landscaping companies. These include:

  • Claims History: Frequent past claims raise premiums. Limited incidents and no major losses lead to discounts.

  • Safety Record: Documented safety protocols, driver training programs, equipment maintenance schedules, and accident investigation processes demonstrate risk management. This earns premium discounts.

  • Revenue: More revenue means you’re taking on greater project values and exposure. This expands the potential severity of claims, driving up premiums.

  • Payroll: Payroll amount directly impacts workers’ compensation premiums. Closely aligning payroll with exposure helps control costs.

  • Equipment/Property Value: Insuring expensive equipment, vehicles, tools and properties leads to larger potential losses, increasing premiums.

  • Years in Business: Longer operating history conveys lower risks, reducing premiums. New businesses pay higher prices.

  • Location: Areas prone to extreme weather may have elevated premiums due to higher property damage risks. High crime locations also raise premiums.

  • Services Offered: Specialized or dangerous services like tree removal can increase liability risks, boosting costs.

  • Deductible Level: Opting for higher deductibles reduces premiums but increases out-of-pocket costs when a claim hits. Evaluate this option carefully based on your risk tolerance.

  • Discounts: Take advantage of discounts like bundling policies, group affiliation programs, and local agent discounts to control costs.

Getting the Right Insurance for Your North Dakota Landscaping Business

Choosing adequate, affordable insurance customized to your evolving risks is vital for North Dakota landscapers. We strongly advise partnering with an experienced, local independent agent who specializes in the landscaping industry. They represent multiple carriers, allowing them to shop your risks to find the right insurer match offering coverage tailored to protect your unique business. Key tips when buying landscaper insurance include:

  • Review all policies annually and optimize limits as your business grows. Avoid over or under-insuring.

  • Ask brokers for loss ratio data on carriers to identify affordable insurers. Firms with loss ratios under 60% spend less on claims compared to premiums collected, allowing room for discounts.

  • Bundle policies with one company for multi-policy discounts. But don’t sacrifice coverage to save a few dollars.

  • Join trade associations like PLANET for access to exclusive discounted group insurance programs.

  • Implement strong safety protocols and driver training to demonstrate your risk management commitment. This can garner discounts of 5-10% or more.

  • Discuss any specialized equipment, tree removal services, or use of chemicals openly so you get properly priced risky activity coverage.

  • Work with an independent agent who has experience with landscapers and relationships with niche markets. This ensures you get suitable protection at a competitive price.

Conclusion

North Dakota landscaping companies need customized insurance to defend against the storms and droughts of unexpected losses. Partner with a trusted, experienced landscaper insurance agent. They will help craft affordable, adequate coverage so your business can continue growing and thriving for years to come.