A big contract with a high-end commercial property manager or contractor might be appealing, but there are several factors a landscaping firm should consider before signing.

“If a company is going to perform work for them, they’re not going to accept the standard $1 million or $2 million policy,” Jay Oliver of Colorado Insurance Professionals warned of working with large firms. Landscapers may be required to buy an excess or umbrella policy to raise their liability coverage to as much as $5 million over their general liability coverage.

“If a landscape company wants to move from being a neighborhood service operation into commercial service of any kind, they’re going to have to buy insurance of a different nature,” he said.

Installing landscaping for new residential developments or condos can be especially perilous because landscapers could be named in a construction defect suit, according to Oliver. Landscapers considering taking on a job like that should double-check their general liability policy, as many providers will exclude coverage for new residential work to avoid that risk.

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