How Much Does Workers Compensation Cost for a Landscaping Business?
- May 26
- 7 min read
One of your crew members is loading mulch at 7:30 a.m. when they feel a sharp pull in their lower back. Another employee slips stepping off a trailer after a long day of mowing routes. If you’ve been in the landscaping business for any amount of time, you know these scenarios aren’t hypothetical—they’re part of the job.
That’s exactly why Workers’ Compensation insurance is one of the first major coverage questions landscaping business owners ask when building out their protection plan. At Wexford Insurance, we talk to contractors every week who are trying to budget for coverage while still staying competitive on bids.
In Nate Jones’s experience as a former underwriting manager, landscaping is one of the most consistently mispriced industries—not because owners aren’t careful, but because they don’t fully understand what drives the cost of Workers’ Comp. Let’s walk through exactly what you should expect to pay, why those costs vary, and how to keep them under control.
Average Workers’ Compensation Cost for Landscaping Businesses
For most landscaping companies, Workers’ Compensation insurance typically costs between $3 and $12 per $100 of payroll per year.
That’s a wide range—but it’s realistic. Your exact rate depends on the type of work you perform, your crew structure, and your safety track record.
Here’s how it generally breaks down:
General Landscaping / Lawn Maintenance
Estimated Range: $3–$6 per $100 of payroll
Lower-risk work like mowing, edging, and basic property maintenance
Minimal heavy equipment usage and fewer elevated hazards
Tree Work, Hardscaping, or Excavation
Estimated Range: $7–$12+ per $100 of payroll
Higher exposure due to climbing, chainsaws, machinery, and lifting
Increased likelihood of severe injury claims
Mixed-Service Landscaping Companies
Estimated blended rate based on job roles
Payroll split between different classifications (a key underwriting factor)
At Wexford Insurance we’ve seen companies unknowingly overpay because their payroll wasn’t correctly broken out by job function. One contractor we worked with had everyone classified under a higher-risk category—even their part-time shop employee. Once we properly categorized their team, their Workers’ Comp premium dropped significantly.
What Factors Affect Your Workers’ Compensation Cost?
Workers’ Comp pricing is not one-size-fits-all. Carriers evaluate your business based on actual risk exposure, not just industry averages.
Type of Work You Perform
Landscaping is a broad category, and rates vary accordingly.
Basic lawn care: lower risk
Tree trimming or removal: higher risk due to falls and equipment
Hardscaping: increased lifting injuries and tool hazards
Irrigation work: potential trenching and underground exposure
The more physically demanding your services, the higher your rate.
Payroll Size and Employee Roles
Workers’ Comp premiums scale with payroll. The more you pay in wages, the higher your total premium.
But not all employees are rated the same:
Field crew and equipment operators carry higher rates
Office staff are typically much lower risk
Supervisors may fall somewhere in between depending on duties
Proper payroll classification is one of the biggest cost-control opportunities.
Claims History
Insurance carriers closely review your loss runs over the past 3–5 years.
Frequent claims = higher pricing
Severe claims = even greater impact
Clean record = strong negotiating leverage
Nate Jones, CPCU, ARM, CLCS, AU, our agency principal, often advises landscaping business owners that “your claims history is one of the few things in insurance you can truly control over time—and it directly impacts your profitability.”
Safety Practices and Training
Carriers reward proactive safety programs.
Strong practices include:
Documented training procedures
Regular safety meetings
Equipment maintenance logs
Injury response protocols
At Wexford Insurance, we’ve seen firsthand that businesses with structured safety programs consistently get better long-term pricing—even if their payroll grows.
Experience Modification Factor (Mod)
Once your payroll reaches a certain threshold, your business receives an experience mod.
Mod below 1.0 = better-than-average claims history (lower cost)
Mod above 1.0 = worse-than-average claims history (higher cost)
This number can dramatically impact your premiums.
After discussing claims and experience mods, add:
For a deeper understanding of how claims history and experience modification impact premiums, the Insurance Information Institute (III) offers a helpful breakdown of Workers’ Compensation cost drivers and risk factors:
Why Workers’ Compensation Is Non-Negotiable for Landscaping Businesses
It’s important to understand the difference between Workers’ Compensation and general liability insurance.
General liability covers damage to customer property or third-party injuries
Workers’ Comp covers your employees when they get hurt on the job
Workers’ Compensation systems are regulated at the state level but generally follow national standards outlined by organizations like the National Association of Insurance Commissioners (NAIC), which provides guidance on how these systems are structured and monitored.
What Workers’ Compensation Covers
Medical expenses for job-related injuries
Partial wage replacement
Rehabilitation and physical therapy
Employer liability protection if an employee sues
Example: One of your crew members injures their shoulder while lifting stone during a patio installation. Workers’ Comp steps in to cover treatment and lost wages while they recover.
Without it, your business could be responsible for those costs directly—plus potential legal exposure.
How Workers’ Comp Fits Into a Complete Landscaping Insurance Plan
Workers’ Compensation is just one piece of a well-rounded insurance portfolio. Most landscaping businesses combine it with several other critical coverages.
Protects against third-party injuries and property damage.
Example: A client trips over equipment left in a yard and gets injured.
Covers your trucks, trailers, and drivers between job sites.
Protects mobile tools and equipment like mowers, blowers, and trailers.
Handles employee injuries and keeps you compliant.
Umbrella Insurance
Provides extra liability limits above your base policies.
At Wexford Insurance, we design insurance programs that reflect how landscaping businesses actually operate—not theoretical risks.
What Drives Workers’ Compensation Costs Higher or Lower?
Understanding pricing drivers gives you an advantage.
Factors That Increase Costs
Hiring inexperienced crew members without training
Poor claims history
Lack of documented safety procedures
Performing high-risk services without proper controls
Misclassification of payroll
Factors That Help Lower Costs
Clear job role separation and payroll classification
Investment in safety training
Consistent equipment maintenance
Quick reporting of injuries
Returning injured employees to light-duty work
One of the most common mistakes Nate Jones, CPCU, ARM, CLCS, AU sees landscaping owners make is waiting until renewal to think about their Workers’ Comp costs. By then, it’s too late to influence pricing.
How to Lower Your Landscaping Workers’ Compensation Costs
If you want to reduce your premiums long-term, focus on risk control—not just shopping quotes.
1. Implement a Formal Safety Program
Even a simple documented process can make a difference.
Weekly safety meetings
Tool and equipment handling training
Proper lifting techniques
2. Classify Payroll Correctly
Break down employees by job function instead of grouping everyone together.
3. Hire and Train Intentionally
New hires are statistically more likely to get injured. Proper training reduces that risk significantly.
4. Report Claims Immediately
Delayed reporting can escalate claim severity and increase costs.
5. Use Return-to-Work Programs
Modified duty roles help reduce claim expenses and improve your experience mod.
6. Maintain Equipment Regularly
Faulty equipment is a leading cause of injuries in landscaping operations.
7. Work With an Independent Agent
As an independent agency, Wexford compares multiple carriers to find competitive pricing and better classification strategies.
Real-World Example from Wexford
At Wexford Insurance we recently helped a landscaping company that was struggling with rising Workers’ Comp costs after a few minor claims.
After reviewing their setup, we found:
No formal safety documentation
All employees classified under a higher-risk code
No return-to-work process
We helped them:
Implement a simple safety protocol
Reclassify payroll accurately
Introduce a light-duty program
By their next renewal, they were positioned for significantly better underwriting results. More importantly, they were operating a safer business.
Frequently Asked Questions About Workers’ Compensation for Landscaping Businesses
Is Workers’ Compensation required for landscaping businesses?
In most jurisdictions, Workers’ Comp is required once you hire employees. Requirements vary, but even small crews are often subject to mandatory coverage rules.
Does Workers’ Compensation cover subcontractors?
Typically, no. True independent subcontractors need their own insurance. However, if they are misclassified and treated like employees, your policy may be responsible.
What happens if I don’t carry Workers’ Comp?
Operating without proper coverage can expose your business to:
Fines and penalties
Lawsuits from injured workers
Out-of-pocket medical costs
It’s a major financial risk most contractors can’t afford.
How can I get the lowest possible rate?
The best way is to:
Maintain a clean claims history
Invest in safety
Classify payroll correctly
Work with an experienced independent agent
Does Workers’ Comp cover all injuries?
It covers job-related injuries and illnesses, but not injuries outside of work or those caused by misconduct or intoxication.
Can my rate change over time?
Yes. Your rate evolves based on payroll, claims history, and your experience mod factor.
Why Landscaping Business Owners Choose Wexford Insurance
Landscaping businesses need more than just a policy—they need advice based on real-world experience.
At Wexford Insurance, we specialize in helping contractors build practical, cost-effective coverage strategies. Because we’re an independent agency, we’re not tied to one carrier—we shop multiple insurance companies to find the best fit for your operation.
Nate Jones, CPCU, ARM, CLCS, AU, brings a unique perspective from his time as an underwriting manager and risk consultant. He understands exactly how carriers evaluate landscaping risks—and how to position your business for better pricing and protection.
We’re also a Trusted Choice agency, meaning we prioritize transparency, education, and long-term relationships with our clients—not just quick quotes.
Our team works with landscaping companies every day, helping them navigate real-world issues like employee injuries, equipment risks, and coverage gaps. We don’t just explain insurance—we help you make smarter decisions.
Get the Right Workers’ Compensation Coverage for Your Landscaping Business
Workers’ Compensation insurance isn’t just a legal requirement—it’s a critical part of protecting your employees and your business.
If you’re unsure whether your current policy is priced correctly or designed properly, it’s worth taking a second look.
At Wexford Insurance, we build landscaping insurance programs tailored to how you actually work—not cookie-cutter policies.
Our office address is:107 N State Road 135, STE 304, Greenwood, IN 46142
Call us today at 317-942-0549 or explore your options online at www.wexfordins.com.
