Every landscape business owner spends time thinking about their operation – solving problems and coming up with solutions – but when it comes to facing your future with confidence are you worrying about the right concerns?
Are you focusing on managing the issues that present the greatest risks to your enterprise?
From our work with providing insurance for your industry we can tell you how to avoid losing sleep over problems that we can help you solve, and what you should be prioritising in terms of protection.
According to our claims records from the past few years the biggest risk liability for landscaping businesses are professional indemnity claims involving legal expenses, where a client has been dissatisfied for whatever reason. Representing 67% of industry-related claims a year they can be considered high risk for your profession and an absolute must for keeping in mind insuring against.
Conversely landscapers are relatively safe with their actual physical products, whether plantings or structures. Only 20% of claims per annum are for product liability.
In between are a whole bunch of medium level risks relevant to landscaping businesses.
To find out more about the business risks you should be focusing on for your insurance renewals and some tips for potentially reducing your premiums through proactive risk management click on the link to read the full article.
Hedging your risks
Professional indemnity claims can seem to come out of the blue but one way to avoid misunderstandings is through clear communications and sign-off documented systematically in contract form. Recording discussions in any meeting with clients can also be a good idea if you ever have to refer back to what has been agreed.
The next most significant risk is cyber security at 53%, followed by management liability at 45% and motor vehicles at 42%.
Regarding cyber security, if you use a computer (laptop or tablet) in your business you are vulnerable to a cyber attack on your data or financial information – or those of your clients. The costs involved are skyrocketing as cyber criminals hold businesses of all sizes to ransom. Find out how to protect your systems and what to consider when taking out cyber security insurance – because one attack could put you out of business.
Management liability issues can range from regulatory compliance to simple errors and omissions: mistakes made by you or your staff. Because everyone slips up sometimes it’s wise to think about insurance protection as back-up to having protocols in place that everyone, including the boss, has to follow.
Every landscaper relies on their vehicles so considering insuring them against accident, damage or theft is fundamental. Check with your broker to obtain the terms you need in regard to how your business operates? Do you have a fleet to cover? Make sure your cover matches your business requirements.
Other medium level risks worth taking into account to protect include employment liability and workers compensation, crime, equipment breakdown, business interruption and property damage, with public liability, travel and marine transport at the lower end at around 30% each.
Know your own business
Being prepared to answer the questions potential insurers may want to ask you will add to your peace of mind and help to ensure you have your risk exposures covered.
Questions might cover
- Inventory of all the properties owned or occupied by the business
- Inventory of plant and equipment, purchase or lease values, maintenance schedules
- Details of regulatory compliance audits undertaken and their frequency
- A list of all your business activities and workers
- Records of important documents backed up and in a safe place.