How Much Does Permanent Yard Contractor Insurance Cost? 2025 Rates

Permanent yard contractors in the United States typically spend between $1,080 and $1,440 per year on comprehensive business insurance. That equals about $90 to $120 per month.

What Drives Premiums

Several factors influence how much coverage will cost:

• Business size – Larger operations with more projects face greater exposure than small, single-crew contractors.
• Services offered – Routine lawn care and maintenance generally cost less to insure than heavy landscaping, tree removal, or structural yard work.
• Location risk – Operating in high-crime or disaster-prone areas raises premiums compared to safer regions.
• Type of equipment used – Expensive or hazardous tools (e.g., chainsaws, tractors, or excavation machinery) increase property and liability coverage needs.
• Prior claims history – A clean record helps keep costs lower, while past claims can drive rates up.
• Coverage limits – Higher limits provide stronger protection but raise monthly premiums.
• Number of employees – More staff increases workers’ compensation requirements and overall liability exposure.

Why It Matters

Understanding these cost drivers helps permanent yard contractors budget wisely and select coverage that matches their risks. With the right plan, they can protect their employees, equipment, and clients without overspending.

How Much Does Permanent Yard Contractor Insurance Cost?

On average, permanent yard contractors in the United States spend between $1,080 and $1,440 annually on business insurance. That equals about $90 to $120 per month. These figures are only estimates, and the actual premium depends on the details of your operation.

Why Costs Differ

Every yard contractor faces unique risks. A solo operator focused on basic lawn mowing will typically pay far less than a larger company offering tree removal, landscaping, or heavy machinery work.

The type of services you provide, the number of employees, your business location, past claims history, and the value of your equipment all play a major role in shaping costs. For example, contractors working in high-crime areas or regions prone to severe weather may face higher liability and property premiums. Similarly, businesses using chainsaws, tractors, or other hazardous equipment often pay more due to increased accident risks.

Key Cost Drivers

Several factors influence how much you’ll pay for coverage:

• Number of employees – More staff increases workers’ compensation and liability requirements.
• Property size and value – Larger facilities or costly equipment raise property coverage costs.
• Claims history – Filing past claims often raises premiums, while a clean record can lower them.
• Business interruption and add-ons – Extra coverage options add to the total bill.

Why This Matters

Understanding these variables helps permanent yard contractors estimate insurance needs more accurately and budget for the real costs of protecting their business. With the right coverage, you can safeguard your employees, equipment, and clients without overspending.

Average Permanent Yard Contractor Insurance Costs For Coverage Types

When it comes to protecting your permanent yard contractor business, different types of insurance cover different risks. Understanding the average cost, coverage details, and what influences pricing for each policy type can help you build a more effective insurance plan. Here’s a closer look at the major coverages most permanent yard contractors need.

General liability insurance: $90 per month

Business owner’s policy: $105 per month

Workers’ compensation insurance: $260 per month

Commercial auto insurance: $180 per month

Contractor’s tools and equipment: $14 per month

Commercial umbrella insurance: $85 per month

Professional liability insurance: $71 per month

General Liability Insurance

The average cost of general liability insurance for a permanent yard contractor is about $90 per month.

General liability covers third-party bodily injury, property damage, and advertising injuries. For example, if you’re working on a customer’s yard and a visitor trips over your equipment and gets injured, this policy could help cover their medical bills and any legal costs if they decide to sue.

Typical policy limits are $1 million per occurrence and $2 million aggregate.

Factors that influence the cost include the business size, location, previous claims history, and any subcontractors or additional insured endorsements.

Average annual premiums by state:

Note: These estimates are based on average national General Liability Insurance premiums for permanent yard contractor businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on business size, scope of services, claims history, geographic risks, and insurer underwriting practices.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $105 per month for a permanent yard contractor.

A BOP bundles general liability insurance with commercial property insurance. It protects against customer injuries, property damage, and loss or damage to your tools, equipment, or office space. For example, if a fire breaks out in your storage shed and destroys your lawnmowers and trimmers, the BOP would help pay for repairs or replacements.

Typical policy limits are $1 million per occurrence and $2 million aggregate for liability, with separate property coverage limits based on the value insured.

Cost factors include the business property value, location risk, business revenue, number of employees, and any optional endorsements like business interruption insurance.

Average annual premiums by state:

Note: These estimates are based on average national Business Owner’s Policy (BOP) premiums for permanent yard contractor businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on business size, property value, claims history, geographic risks, and insurer underwriting practices.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a permanent yard contractor is around $260 per month.

Workers’ comp covers medical bills, rehabilitation, and lost wages for employees injured on the job. For example, if one of your crew members cuts their hand while trimming a hedge, workers’ comp would help pay for their medical treatment and a portion of their lost wages while they recover.

Policy limits are regulated by each state, but typically include medical costs and a percentage of lost wages without a set cap.

Premiums are influenced by the size of your payroll, the type of work employees perform, your claims history, and any implemented safety programs.

Average annual premiums by state:

Note: These estimates are based on average national Workers’ Compensation Insurance premiums for permanent yard contractor businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on payroll size, number of employees, claims history, geographic risks, and insurer underwriting practices.

Commercial Auto Insurance

The average cost of commercial auto insurance for a permanent yard contractor is about $180 per month.

Commercial auto insurance covers vehicles owned or used by the business for accidents, theft, vandalism, or damage.For example, if one of your workers gets into an accident while driving the company truck to a job site, this policy would help cover the repair costs and any third-party injury or property damage claims.

Factors influencing the cost include the value of the vehicle, coverage needs, and your insurance claims history.

Average annual premiums by state:

Note: These estimates are based on average national Commercial Auto Insurance premiums for permanent yard contractor businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on the number of vehicles, driving records, claims history, geographic risks, coverage limits, and insurer underwriting practices.

Contractor’s Tools And Equipment

The average cost of contractor’s tools and equipment for a permanent yard contractor is about $14 per month.

Contractors tools and equipment insurance covers the repair or replacement of tools and equipment used in your business if they are lost, stolen, or damaged. For example, if someone breaks into your trailer and steals your lawnmower, leaf blower, and hedge trimmers, this insurance would help pay to replace the stolen equipment. Without it, you’d have to cover the costs yourself just to keep working.

The cost of contractor’s tools and equipment coverage depends on the value of your tools and equipment and the type of work you do.

Average annual premiums by state:

Note: These estimates are based on average national Contractor’s Tools and Equipment Insurance premiums for permanent yard contractor businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on the value of tools and equipment, theft risk, claims history, geographic risks, and insurer underwriting practices.

Commercial Umbrella Insurance

The average cost of commercial umbrella insurance for a permanent yard contractor is about $85 per month.

Commercial umbrella insurance gives your business extra protection by adding more coverage on top of your existing liability policies (like general liability or commercial auto). It kicks in when the costs of a claim go over the limits of your other insurance.

For example, if a client trips over your equipment, suffers a serious injury, and sues you for $1.5 million, but your general liability policy only covers $1 million, umbrella insurance would help cover the remaining $500,000, so you’re not stuck paying out of pocket.

The cost of commercial umbrella insurance mainly depends on how much extra coverage you choose to buy.

Average annual premiums by state:

Note: These estimates are based on average national Commercial Umbrella Insurance premiums for permanent yard contractor businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on coverage limits, underlying policies, claims history, geographic risks, and insurer underwriting practices.

Professional Liability Insurance

The average cost of professional liability insurance for a permanent yard contractor is about $71  per month.

Professional liability insurance (also called Errors and Omissions Insurance) protects your business if a customer claims you made a mistake, gave bad advice, or didn’t do the job properly, and it caused them a financial loss.

For example, if you design and install a new landscape drainage system but make an error that causes the client’s yard to flood and damage their property, they might sue you for negligence. This insurance would help cover legal fees and any settlement or judgment you’re required to pay

The cost of professional liability insurance depends on things like how much coverage you want, how big your business is, and the kind of services you provide.

Average annual premiums by state:

Note: These estimates are based on average national Professional Liability Insurance premiums for permanent yard contractor businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on business size, scope of services, claims history, geographic risks, and insurer underwriting practices.

Permanent Yard Contractor Business Insurance Costs By Provider

Permanent yard contractor business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: These estimates are based on average small business insurance costs for permanent yard contractors, typically including general liability, workers’ compensation, commercial auto, and property coverage. Actual premiums will vary depending on factors such as company size, number of employees, type of yard work performed (e.g., landscaping, hardscaping, maintenance), location, claims history, and coverage limits.

What Factors Impact Your Permanent Yard Contractor Insurance Costs?

Insurance premiums for permanent yard contractors are determined by underwriters who assess your business’s overall risk profile. Several factors—from the type of services you provide to your claims history—play a role in shaping what you’ll pay for coverage.

Type Of Yard Work

Not all yard services carry the same risks. Contractors focused on basic lawn mowing generally pay less than those offering tree removal, hardscaping, or heavy machinery work. The more hazardous the service, the higher the premium.

Equipment You Use

Expensive or specialized tools such as skid steers, stump grinders, or riding mowers increase property coverage needs. The more valuable the equipment, the more it costs to insure against theft or damage.

Location Of Your Business

Where you operate matters. Businesses in high-crime areas or regions prone to storms, floods, or wildfires often face higher premiums. Contractors in safer suburban or rural locations typically benefit from lower rates.

Size Of The Operation

The number of employees, vehicles, and customers directly impacts premiums. Larger crews and more activity increase the likelihood of accidents or claims, driving up workers’ compensation and liability costs.

Policy Limits And Deductibles

Higher coverage limits provide stronger protection but raise premiums. Choosing a higher deductible can lower monthly costs, though it means more out-of-pocket expenses if a claim arises.

Claims History

Frequent claims signal higher risk to insurers, which can drive up rates. A clean record often qualifies contractors for discounts and more favorable terms.

How To Lower Your Permanent Yard Contractor Insurance Costs

Running a permanent yard contractor business can be expensive, but your insurance premiums don’t have to overwhelm your budget. While coverage is essential, there are practical strategies to reduce costs without sacrificing protection.

1. Bundle Your Policies

One of the simplest ways to save is by combining coverage. Many insurers offer a Business Owner’s Policy (BOP) that packages general liability and property insurance at a reduced rate. Adding workers’ compensation through the same provider can unlock further discounts and simplify paperwork.

2. Ask About Discounts

Insurers often reward loyalty and upfront payments. You may qualify for reduced rates by signing a multi-year agreement or paying your premium in full instead of monthly installments.

3. Strengthen Safety Measures

Accidents drive up costs for both you and your insurer. Using the right landscaping tools, keeping equipment well-maintained, wearing protective gear, and following safe practices when trimming trees or operating machinery all help reduce liability risks. Demonstrating strong safety practices can lower premiums over time.

4. Build A Safer Work Environment

Workers’ compensation costs can be managed by focusing on employee safety. Training crews on proper lifting techniques, safe tool use, and awareness when working near traffic or uneven ground reduces injuries. Fewer claims mean lower premiums.

5. Adjust Your Deductible

Opting for a higher deductible is a straightforward way to lower monthly premiums. Just ensure your business can comfortably cover the out-of-pocket amount if a claim arises.