Landscaping and lawn care contractors face unique insurance requirements that directly impact their operational costs and profitability. Understanding the two-component structure of contractor insurance—General Liability (GL) and Workers’ Compensation (WC)—is essential for accurate budgeting and strategic business planning.
National Premium Benchmarks
General Liability premiums vary significantly between landscaping contractors and lawn care services. For landscaping contractors, GL premiums range from 0.5% to 1.8% of annual revenue, with national averages of $4,910 for a $500,000 revenue business. Lawn care services face different risk profiles, with GL premiums ranging from 0.4% to 1.2% of revenue, averaging $3,590 for comparable revenue levels.
The potential GL savings through strategic shopping represents a significant to substantial reduction in current premium for landscapers—not as a percentage of revenue, but as a reduction in actual premium dollars. For a landscaping contractor paying $4,910 annually in GL coverage, this represents potential savings of $1,930 per year when moving from average to favorable market rates. Lawn care operators can achieve moderate to substantial potential savings, translating to $1,540 in potential annual savings when moving from average premiums to competitive rates.
Workers’ Compensation rates for lawn care services (Class Code 9102) range from $1.45 to $5.22 per $100 of payroll nationally. The median WC rate sits at $2.85 per $100, while landscaping installation work under Class Code 0042 typically runs moderately to significantly higher due to increased injury risk from equipment operation and lifting.
Dollar Impact for $500K Revenue Business
For a landscaping contractor generating $500,000 in annual revenue:
- GL Premium Range: $3,000 to $7,500 annually (0.6% to 1.5% of revenue)
- National GL Average: $4,910
- Favorable Rate: $2,980
- Potential GL Savings: $1,930 (significant reduction possible through competitive shopping from average to low-end rates)
For a lawn care service at the same revenue level with $200,000 payroll:
- GL Premium Range: $2,000 to $5,500 annually (0.4% to 1.1% of revenue)
- National GL Average: $3,590
- Favorable Rate: $2,050
- Potential GL Savings: $1,540 (moderate reduction possible through competitive shopping from average to low-end rates)
- WC Premium Range: $2,900 to $10,440 annually (based on state rates)
- WC National Median: $5,700 annually ($2.85 per $100 payroll)
Six Major Cost Drivers
1. Classification Codes (Both GL and WC)
- GL code 97050 (Lawn Care Services) for basic maintenance and mowing
- GL code 97047 (Landscape Gardening) for planting and installation work
- WC codes 0042 and 9102 reflect distinct risk profiles for gardening versus maintenance work
2. Years of Experience (Primarily GL)
- New contractors face substantially higher premiums than established businesses
- Five-year track record typically qualifies for preferred GL rates
3. Subcontractor Usage (Both GL and WC)
- Uninsured subcontractors can dramatically increase GL premiums
- WC audits penalize improper subcontractor classification
4. Revenue vs. Payroll
- GL premiums scale with gross revenue
- WC premiums calculate from total payroll, including owner compensation in many states
5. Claims History (Different impacts)
- GL claims over $10,000 trigger moderate to substantial rate increases
- WC claims affect experience modification factors for 3-4 years
6. Geographic Factors (Different mechanisms)
- GL rates vary by state tort environment and litigation frequency
- WC rates set by state rating bureaus with mandated base rates
Learn more about landscaping insurance to ensure you’re comparing the right coverage types.
50-State Interactive Heat Maps
Landscaping Insurance Cost Metrics by State
Explore insurance costs and savings opportunities across the United States
The four heat maps above provide instant visual insight into landscaping insurance costs nationwide:
GL Premium Ranges: Costs vary from 0.4% of revenue in competitive lawn care markets to over 2.2% for landscaping contractors in high-cost states. Landscape gardening (Code 97047) typically runs moderately to substantially higher than lawn care services (Code 97050).
GL Savings Opportunities: Strategic shopping yields significant to substantial potential premium reductions depending on state and service type when moving from average to competitive rates. Even expensive states like New Jersey and New York offer substantial potential savings through aggressive market competition for those currently paying average or above-average rates.
Carrier Competition Levels: States with 80-100% competition scores (Arkansas, Texas, Arizona) offer more options and better pricing. Lower scores indicate limited carriers requiring specialized broker relationships.
WC Rates per $100 Payroll: Dramatic variation from North Dakota's $1.45 (lawn care) to New Jersey's $5.22. Landscape installation (Code 0042) runs moderately to significantly higher than these base rates, substantially impacting labor costs and competitive positioning.
Key Regional Patterns
- Lowest Combined Costs: Southwest and Plains states (AZ: $1.90 WC, AR: $1.52 WC with substantial GL savings potential)
- Highest Combined Costs: Northeast corridor (NJ: $5.22 WC, NY: $3.99 WC with extreme GL premiums)
- Hidden Values: Virginia balances moderate WC ($2.31) with strong GL competition (substantial savings potential)
Strategic insight: Contractors near state borders should consider the insurance arbitrage opportunity—a NJ landscaper expanding into PA can achieve substantial WC cost reductions.
Specialization Rate Analysis - General Liability
Lawn Care Services (GL Code 97050)
Basic lawn maintenance operations classified under GL Code 97050 focus on routine property maintenance with limited equipment and chemical exposure.
INCLUDES WORK: Basic lawn maintenance including mowing, leaf blowing, edging, trimming, seasonal clean-up, and basic weed control on residential/commercial properties.
EXCLUDES WORK: Landscaping design, irrigation, hardscaping, tree removal, grading, retaining walls, licensed pesticide application, and work on steep slopes.
| Revenue Level | GL National Average | GL Favorable Rate | Potential Savings (Average to Low) | GL Premium Range (% of Revenue) |
| $50,000 | $870 | $450 | Substantial potential reduction | 1.2% - 2.2% |
| $150,000 | $1,390 | $760 | Substantial potential reduction | 0.6% - 1.2% |
| $500,000 | $3,590 | $2,050 | Moderate potential reduction | 0.4% - 1.1% |
GL Risk Advantages:
- Routine maintenance work presents predictable exposures
- Limited heavy equipment reduces property damage frequency
- Residential focus typically involves lower per-occurrence losses
- Seasonal operations in many regions reduce year-round exposure
- Established service routes minimize vehicular risks
WC Considerations: Class code 9102 applies with median rate of $2.85 per $100 payroll, ranging from $1.45 (ND) to $5.22 (NJ)
Landscape Gardening Contractors (GL Code 97047)
Landscape gardening operations under GL Code 97047 encompass broader services including installation and light irrigation work with corresponding risk elevations.
INCLUDES WORK: Basic landscape/lawn care service, maintenance, gardening, mowing, mulching, planting, sprinkler installation, and ground-level tree trimming on slopes up to 20 degrees.
EXCLUDES WORK: Tree service license work, road/highway work, retaining walls, pools/ponds, environmental cleanup, playgrounds, agricultural work, sports turf, equipment rental, snow removal, licensed pesticides, and erosion control.
| Revenue Level | GL National Average | GL Favorable Rate | Potential Savings (Average to Low) | GL Premium Range (% of Revenue) |
| $150,000 | $1,830 | $1,110 | Significant potential reduction | 0.7% - 1.8% |
| $500,000 | $4,910 | $2,980 | Significant potential reduction | 0.6% - 1.5% |
| $1,000,000 | $9,640 | $4,840 | Substantial potential reduction | 0.5% - 1.4% |
GL Risk Challenges:
- Installation work triggers completed operations exposures
- Sprinkler installation risks underground utility damage
- Mulching and planting increase property damage potential
- Slope work up to 20 degrees adds erosion liability
- Plant warranty obligations extend liability periods
WC Considerations: Class code 0042 for landscape gardening typically runs moderately to significantly higher than 9102 rates
Hardscape and Masonry Work (GL Code 97447)
Contractors performing retaining walls, paver installations, and structural hardscaping are classified under GL Code 97447 for masonry work, reflecting the elevated risk profile of structural installations.
INCLUDES WORK: Masonry cutting and laying of bricks, blocks, stone, clay products and mortar; exterior work up to 3 stories, slopes to 20°, retaining walls to 6 feet, and excavation to 12 feet below grade.
EXCLUDES WORK: Street/road/highway walls, dams, levees, cast concrete, fireplaces, pools, waterproofing, foundations, equipment rental, underground operations without utility verification.
| Revenue Level | GL National Average | GL Favorable Rate | Potential Savings (Average to Low) | GL Premium Range (% of Revenue) |
| $50,000 | $1,430 | $700 | Substantial potential reduction | 2.0% - 3.7% |
| $150,000 | $3,160 | $1,810 | Moderate potential reduction | 1.3% - 2.7% |
| $500,000 | $8,490 | $5,290 | Significant potential reduction | 1.0% - 2.0% |
GL Risk Factors:
- Structural installations create long-term completed operations exposure
- Retaining walls up to 6 feet carry catastrophic failure potential
- Excavation to 12 feet risks underground utility strikes
- Material handling with blocks and stone increases injury frequency
- Grade changes affect neighboring properties' drainage patterns
- Winter freeze-thaw cycles impact structural integrity
WC Considerations: Mixed classification between 0042 (landscape) and 5022 (masonry) codes, with masonry rates typically substantially higher than lawn care
Geographic Cost Variations
Workers' Compensation Analysis
Workers' compensation rates for lawn care services (Class Code 9102) demonstrate extreme state-by-state variations, creating opportunities for strategic business planning and cost management. Landscaping installation work (Class Code 0042) typically carries moderately to significantly higher rates than lawn care due to equipment operation and material handling risks.
Five Lowest WC States for Lawn Care (9102)
- North Dakota - $1.45 per $100 payroll
- West Virginia - $1.45 per $100 payroll
- Arkansas - $1.52 per $100 payroll
- Oregon - $1.69 per $100 payroll
- Arizona - $1.90 per $100 payroll
Five Highest WC States for Lawn Care (9102)
- New Jersey - $5.22 per $100 payroll
- Maine - $4.29 per $100 payroll
- Vermont - $4.20 per $100 payroll
- Louisiana - $4.08 per $100 payroll
- Rhode Island - $4.06 per $100 payroll
Note that California and Hawaii show $0.00 rates due to monopolistic state fund systems requiring separate analysis outside standard market comparisons.
General Liability Market Dynamics
Interactive heat maps available online demonstrate dramatic GL premium variations across states, with market competition driving significant rate disparities beyond WC differences.
Top 5 Most Affordable Combined Insurance States
1. Arkansas
- GL average premium ($150K revenue): $450
- WC rate (9102): $1.52 per $100 payroll
- Combined advantage stems from low litigation frequency and competitive rural markets
- Total annual cost for $150K revenue/$60K payroll business: $1,362
2. Texas
- GL average premium ($150K revenue): $450
- WC rate (9102): $1.95 per $100 payroll
- No state income tax offsets slightly higher WC costs
- Total annual cost for $150K revenue/$60K payroll business: $1,620
3. Arizona
- GL average premium ($150K revenue): $450
- WC rate (9102): $1.90 per $100 payroll
- Desert climate reduces seasonal weather claims significantly
- Total annual cost for $150K revenue/$60K payroll business: $1,590
4. Virginia
- GL average premium ($150K revenue): $450
- WC rate (9102): $2.31 per $100 payroll
- Balanced regulatory environment supports stable pricing
- Total annual cost for $150K revenue/$60K payroll business: $1,836
5. Tennessee
- GL average premium ($150K revenue): $675
- WC rate (9102): $2.24 per $100 payroll
- Business-friendly climate maintains competitive insurance markets
- Total annual cost for $150K revenue/$60K payroll business: $2,019
Top 5 Most Expensive Combined Insurance States
1. New Jersey
- GL average premium ($150K revenue): $2,175
- WC rate (9102): $5.22 per $100 payroll
- Highest WC rates nationally compound with elevated GL costs
- Total annual cost for $150K revenue/$60K payroll business: $5,307
2. New York
- GL average premium ($150K revenue): $5,925
- WC rate (9102): $3.99 per $100 payroll
- Metropolitan exposure and litigation environment drive extreme GL premiums
- Total annual cost for $150K revenue/$60K payroll business: $8,319
3. Connecticut
- GL average premium ($150K revenue): $1,950
- WC rate (9102): $3.29 per $100 payroll
- Affluent markets increase both liability exposures and injury costs
- Total annual cost for $150K revenue/$60K payroll business: $3,924
4. Louisiana
- GL average premium ($150K revenue): $1,725
- WC rate (9102): $4.08 per $100 payroll
- Coastal weather risks combine with challenging legal environment
- Total annual cost for $150K revenue/$60K payroll business: $4,173
5. Rhode Island
- GL average premium ($150K revenue): $1,740
- WC rate (9102): $4.06 per $100 payroll
- Small state market limits carrier competition
- Total annual cost for $150K revenue/$60K payroll business: $4,176
Shopping aggressively remains critical even in expensive states, with substantial potential GL savings available in many high-cost markets for those currently paying average or above-average rates.
Coverage Components - General Liability
Limit Structure Impact
General liability limits fundamentally determine premium costs and protection levels for landscaping contractors:
$500K/$1M Limits (Per Occurrence/Aggregate)
- Generally the minimum acceptable for residential work
- Reduces premiums moderately versus standard limits
- Insufficient for most commercial contracts
$1M/$2M Limits (Industry Standard)
- Minimum required by most commercial clients
- Baseline for municipal contracts
- Optimal cost-to-coverage ratio
$2M/$4M Limits
- Necessary for large commercial projects
- Increases premiums moderately to significantly over standard
- Often achieved through umbrella policies
Deductible Strategies
Strategic deductible selection significantly impacts annual premiums:
$0 Deductible
- Maximum premium cost
- Appropriate for high-frequency, low-severity claims
- Common for new businesses without reserves
$2,500 Deductible
- Reduces premiums modestly to moderately
- Manageable for most small claims
- Balances premium savings with risk retention
$5,000 Deductible
- Premium reduction of moderate to significant levels
- Requires adequate cash reserves
- Optimal for established contractors with clean loss history
Specialized Endorsements
Faulty Workmanship (E&O)
- Low-limit GL endorsement ($10,000)
- Covers plant replacement and rework costs
- Premium impact: $50-$250 annually
Tools & Equipment Coverage
- GL endorsement or separate inland marine policy
- Covers owned and rented equipment
- Typical limits: $5,000-$25,000
Five Critical GL Coverage Priorities
- Adequate Limits - Non-negotiable for installation work
- Faulty Workmanship (E&O) - Covers plant replacement and rework costs
- Tools & Equipment Coverage - Protects owned and rented equipment investment
- Blanket Additional Insured - Automatic coverage for clients and property owners
- Products Liability - Essential for material warranties and plant guarantees
Cost-Saving Strategies
Strategic Shopping Timeline
General Liability Renewal
- Start shopping 60 days before expiration
- Collect five years of loss runs
- Document safety programs and training
- Compare minimum five carrier quotes
Workers' Compensation Planning
- Review classifications 90 days before renewal
- Prepare payroll documentation by job function
- Consider group programs and associations
- Evaluate state fund versus private carriers
Workers' Compensation Optimization
Classification Optimization Proper employee classification between 9102 (Lawn Care) and 0042 (Landscape Gardening) can generate substantial savings. A $500,000 revenue contractor with $200,000 payroll in New Jersey saves $4,680 annually by correctly allocating 60% of payroll to lawn care versus installation work.
Payroll Segregation Tactics
- Clerical Exclusion: Office workers classified under 8810 save $4.50+ per $100 payroll
- Owner Exclusion: Many states permit owner opt-out, eliminating $5,000-$15,000 in premiums
- Seasonal Segregation: Track peak season versus maintenance payroll separately
Experience Modification Management
- Claims impact mods for three years
- Single $25,000+ claim can increase premiums moderately to substantially annually
- Safety committees and programs can qualify for minor to modest credits in participating states
Premium Audit Preparation
- Maintain separate time records by classification
- Document subcontractor certificates monthly
- Track overtime separately (premium calculated on straight time)
A landscaping business with $300,000 payroll implementing comprehensive WC strategies typically reduces premiums by $2,500 to $4,500 annually through classification accuracy, safety programs, and audit preparation.
General Liability Reduction Tactics
Contract Management
- Require subcontractor insurance certificates
- Implement hold harmless agreements
- Document scope limitations clearly
- Maintain detailed service records
Risk Transfer Mechanisms
- Separate entity structure for equipment
- Client assumption of chemical application risk
- Weather-related service postponement clauses
- Property damage deductible pass-through
Operational Improvements
- GPS tracking reduces vehicle claims
- Photo documentation prevents disputes
- Standardized training reduces errors
- Equipment maintenance logs support defense
Shopping aggressively remains the single most effective cost reduction strategy, with substantial potential GL savings available for those currently paying average or above-average premiums through competitive bidding.
Methodology Note
This analysis draws from aggregated quote data representing over 1,000 landscaping contractors nationwide. Benchmarking reflects standardized assumptions including $1M/$2M GL limits, $500 deductibles, and clean five-year loss history. State-specific variations incorporate local market dynamics, carrier competition levels, and regional risk factors. Premium ranges represent 10th to 90th percentiles, excluding outliers. All savings figures represent potential reductions when moving from average market rates to competitive low-end rates and are not guaranteed for all contractors. Workers' compensation analysis pending integration of state-specific base rates and experience modification factors.