Lawn irrigation installation businesses are subject to risks because of the hazards of the profession. Say a residential installation project is underway, and a client’s child is playing nearby. They trip over a trencher machine and sustain serious injuries. They are rushed to the hospital and now require admittance. The client may then sue the irrigation business for damages caused by the injury.
Early investment in commercial insurance can help your business recover from significant losses due to situations like these. This blog post delves into the benefits of lawn irrigation and sprinkler system installation insurance and its role in protecting your business.
Potential Risks for Lawn irrigation installation Firms
As a lawn irrigation business owner or contractor, you risk exposure to several hazards. Here are some examples of what can go wrong:
- Lawn irrigation installation businesses work with heavy equipment on gardens and lawns at residential and commercial locations. During the installation process, extensive damage may be done to the property. The client may claim damages.
- Irrigation system installation professionals work with pipe cutters and excavators. An employee can get hurt when installing garden sprinklers. The employee will be entitled to and expect workers’ compensation benefits.
- During a fire, owned business assets may be destroyed. Your business would incur significant costs to replace damaged assets.
- Workers break for lunch during an installation at a client’s home. When they return, the equipment has been stolen. Without insurance coverage, your business will need to bear the cost of replacing the equipment.
- A company vehicle may be damaged in an accident. The employee sustains injuries and the vehicle needs repairs; the other party’s vehicle is also damaged, and the occupants are hurt. Depending on who caused the accident, your business may be liable for damages for bodily injury and property damage.
Incidents like these can have serious financial repercussions on your business and lead to operational interruptions. However, investment in lawn irrigation and sprinkler system installation insurance can help your business from potential operational risks.
As an irrigation system installation contractor, you may install systems for gardens, plant beds, and grass at residential and commercial properties. In both cases, purchasing lawn irrigation and sprinkler system installation insurance can help you safeguard the business.
Types of Irrigation System Installation Insurance
As an irrigation system installation contractor, you may install systems for gardens, landscape beds, and lawns in residential and commercial properties. In both cases, purchasing lawn irrigation and sprinkler system installation insurance can help you safeguard the business.
General Liability Insurance
This is an essential must-have insurance that covers common operational risks. General Liability Insurance covers claims and lawsuits from third-party bodily injury, damage to another’s property, and personal and advertising injuries. It is crucial for litigation of certain types of third-party lawsuits. For instance, your client or a vendor is injured on the premises where an installation is being done or at your business office. General liability insurance can cover the cost of litigation, court-related expenses, settlements, or compensation if your business is sued for damages. Here is a snapshot of potential insurance coverage available in these scenarios:
1. Bodily/injury: If your client gets hurt in your office space, damages for the medical/ hospitalization bills of your client can be covered when your business is legally liable
2. Property damage: Accidental damage that occurs to a client’s property during installation can be covered
3. Litigation fees and compensation: Legal defense and related expenses are covered
4. Personal and advertising injury: Claims that relate to libel and slander, invasion of privacy, false detention, and wrongful eviction can be covered
Business Owner’s Policy
Your irrigation system installation business may use equipment, which is expensive and difficult to replace without significant financial implications. Mobileproperty such as machiner, equipment, furniture, and electronics such as computers, printers, and servers may be destroyed at your location due to a fire, theft, vandalism, tornado or other insured peril.
This is where a Business Owner’s Policy can come into use. This coverage combines general liability with commercial property insurance to offer more comprehensive coverage. The policy can cover property losses, business interruptions, and claims related to bodily injury, personal injury, and litigation fees in third-party lawsuits.
Commercial Auto Insurance
Your company probably own work vehicles to transport equipment to and from client locations. While on the road, one of these vehicles may meet with an accident and get damaged. Another vehicle involved may also suffer damage not to mention its occupants may be hurt. Commercial auto insurance responds to bodily injury and property damage liability claims or lawsuits when your driver is at fault for the incident. Your employed driver’s injuries would primarily be covered by workers’ compensation insurance, not the auto insurance. This policy may also include uninsured or underinsured motorist liability coverage and other state-required insurance coverage.
Inland Marine Insurance
In some instances, property damage occurs to your mobile equipment while in transit, at the job site, or parked at an off-site facility, such as a warehouse. The equipment may be customized and expensive, and in the case of theft or collision, the business may incur considerable expenses to replace or repair the equipment. Inland marine insurance covers mobile property that is not stationary and not always kept at the business premises. It can be a valuable type of commercial insurance for contracting businesses due to the transportation and off-premises equipment needs of your irrigation system installation business.
Workers’ Compensation Insurance
As a business owner, you probably hire staff to perform various functions. You may have irrigation consultants, installation professionals, sales professionals, and clerical staff, to name a few, on your payroll. Staff members may sustain injuries due to accidents during work. Workers’ compensation insurance is a valuable investment as it covers medical and hospitalization expenses, a percentage of lost wages for an employee hurt at work. In the unlikely occurrence of an employee fatality, death benefits for the worker’s family per statue are also paid. Even if employees get hurt in a vehicular accident, workers’ compensation coverage is where their injuries are covered first, not on the business auto policy.
Secure your Irrigation Company Today
Building a thriving business without having commercial business insurance is almost impossible today. Even if you take great care to build a credible, trusted irrigation system installation business, there is potential for things to go wrong. Investing in adequate and timely commercial insurance can help you and your team mitigate potential risks. Businesses can partner with a commercial insurance agency such as Insurance Advisor as we understand the various challenges irrigation system installation companies face. We provide commercial insurance, instant quotes, and easy payment options for business insurance. Visit our website to learn more today!
Frequently Asked Questions (FAQ) about Lawn irrigation Installation Insurance
1. Why do irrigation businesses need insurance?
Irrigation systems are essential to supply water to any growing crop, lawn, plant or tree. Not only are they utilized by the agricultural industry, many businesses and homes also have irrigation systems to maintain landscaping and lawns. Irrigation system installation companies provide a valuable service and are in high demand. Getting insurance for your business is a great investment in the future of your operations. Common types of insurance for irrigation companies will consist of general liability, workers’ compensation, business auto, and contractors’ equipment.
2. When do I need lawn irrigation sprinkler system installation coverage?
As a lawn irrigation business owner, it's wise to consider getting insurance before you start jobs and hire employees. General liability insurance protects your business if something goes wrong during installation and someone gets hurt, or damage occurs to another’s property. Your company-owned truck used to haul your equipment needs insurance to protect the company from third-party liability suits. If you have employees, you need to have workers’ compensation to pay for the statutory benefits owed to them. Getting the applicable insurance for your business will give you a sense of security.
3. What insurance do irrigation system installation contractors need?
The types of insurance typically needed by irrigation system installers consist of:
- General Liability Insurance: Insurance protects the business against third-party claims of property damage and bodily injury caused by the business' operations, products, or employees.
- Commercial Auto Insurance: It covers the liability arising from auto accidents where the company’s driver is negligent for the property damage or physical injuries that occur. Coverage to comply with state laws is included and there are options for comprehensive and collision physical damage coverage on business vehicles, rental reimbursement, and uninsured motorist coverage.
- Inland Marine Insurance: This covers mobile equipment taken from job to job such as trenchers, pipe cutters, front-end loaders, backhoes, lawnmowers, and materials needed to provide the installation service.
- Business Owner's Policy: This policy combines property, business interruption, and general liability insurance on one policy, which can save you money instead of purchasing separately. It usually can be customized to include mobile equipment and other coverage options.
- Workers' Compensation Insurance: This coverage is mandatory in most states when you reach a certain number of employees. It protects the employer from employee lawsuits when they get hurt and pays for medical costs, rehabilitation, and a portion of lost wages resulting from a work injury or occupational disease.
4. What is irrigation contractor insurance?
Lawn irrigation business insurance consists of a combination of policies or insurance coverage, depending on the business's exposure to loss. Common policies include business auto, general liability, inland marine, and workers’ compensation. It provides financial protection for various risks associated with operating an irrigation installation company.