Just like with all businesses, lawn care business is wrought with certain risk factors. Most people would prefer to have these risks taken care of in case they occur. Usually lingering on the minds of most people in this sector is how much it would cost to get insurance for such businesses.
Insurance companies are available that would gladly cover the businesses against the said eventualities. However, the nature of risk will usually determine the cost of premium one is likely to pay for the insurance of business.
Insurance companies work by premiums which are usually calculated on the strength of the probability of the risk and charged annually or monthly. Because at any given time, the risk may occur, the insurance company pays against the agreed loss a certain amount of money to shield the business against eminent loss.
Lawn companies need to be insured as they are faced with various risks on the field. Insurance is a protection of the business against loss. The differences in business rates and the type of risks they cover may interest one to ask the question why the cost of insurance in this sector has not been streamlined.
However, different areas are prone to certain risks which may make a given company operating in this field to consider the price they charge for the insurance cover. A case in point is the consideration of gravity of the nature risks which is important before making a comparative look at how much each of the companies is charging.
What are the risks?
Lawn businesses are usually covered for the following risks:
1. Exposure to chemicals - in the course of mowing the lawns, the risk of the lawn mowers getting exposed to different chemicals which may corrode parts of it making it obsolete before its user period is very high. Water, mainly snow is also covered in this area as it also destroys lawn blades and engine.
Chemicals on the lawn may include chlorides and even certain acidic compounds. Getting an insurance cover for the same may prove to be the best decision a business owner may take. While the insurance cover for this may in some cases is included in the general liability, the fact is that chemicals cause damage.
2. The occurrence of fire - because of the use of gasoline on most of the lawn mowing equipment, the risk of fire is usually real. In some cases, electric lawn mowers have the potential for fire orchestrated by contact of the electrical circuit with water.
Such fire on the lawn may cause unimaginable damage to the equipment and the lawn. Having a well-tended garden being left in disarray may not be your hope in your service business. It is this that does most lawn companies to have the risk of fire covered by their insurance.
Moreover, such fire may not only cause damage to the equipment but may be a danger to the lives of the one using the equipment causing death.
3. Employee compensations, hazard, and health - If the user was an employee of the lawn business and has been injured or incapacitated in one way from the work; the payment needs to come from insurance for the same. On the issue of employee health, the risk to the lungs or the overall occurrence of chopped limbs is real which may result in admissions.
4. Theft - at times, the equipment you have procured for the lawn business may fall victim of theft. Having it covered for this risk is usually advised to shield you from the losses as the insurance company will replace the lost machine with a new one.
6. General liability - like in almost all businesses, the risk of not being paid after performing a given task or just falling prey to unscrupulous business ventures is real. At times, the lawn owners may not be satisfied and may lodge complaints about a refund.
In the worst case, the noise caused by lawn care machines has been subject of protracted legal battles for the tort of nuisance. Lawn businesses are usually insured for such risks to help the business stay afloat. General liability is the most common insurance cover in lawn care.
What then is the cost of lawn care insurance?
Lawn insurance covers differ from region to region and at times depending on the risk. For instance, in areas which are prone to snow, which can cause considerable damage to the lawn care machines, the insurance covers may be priced at $1000 annually or even more whereas s the same may be less in areas where snow is not there.
On the same point, some companies just overprice their policies based on the gravity of the risk. While the general liability insurance cover may cost less at $500, the risk of fire on the same company may run to $2000 annually.
The cost of the premium on any given company is usually dependant on the nature of the risk and how probable it is to happen. Chemical threats, fire, and damage, are some of the risks in lawn care which any business needs to get.
There are cases where the quality of the equipment in question may determine the premium, making it go for as high as $1600 annually. Because of the constraints, most businesses complain that the cost of insuring lawn care is such an expensive affair.
Insurance is an important component in any business venture. Lawn care business is not left behind as it is exposed to daily risks. The possibility of having snow is natural and may not be controlled by the user or the fact that lawn blades are prone to clogging which damage them.
The overall health of the people around and the one using the yard machine is, in essence, the reason for having the insurance cover. Wildfires, mistaken blockages of drainage pipes arising from lawn care activities may cause you to pay lots of money if you don’t prepare (Ryland’s and Fletcher). The insurance company you choose and their rates are upon the business.
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