In 2024, the average workers' comp rate for landscaping is $137 monthly, or $4.39 per $100 of payroll. However, rates vary from $2.33 to $7.63 per $100 of payroll depending on the type of landscaping work.
What is Workers' Comp Premium for Landscapers based on?
Your workers' comp premium isn't one-size-fits-all—it depends on several factors, including the type of landscaping work you do, the state you operate in, the size of your payroll, and your claims history.
Your Industry
Workers’ comp rates vary by industry because each type of work has a different likelihood of injury. The National Council on Compensation Insurance (NCCI) categorizes every job role and assigns each one an arbitrary 4 digit number, called a class code, used for easy reference.
They also evaluate the likelihood of injuries and potential severity and codify that in a risk rate. Higher-risk industries like construction have higher rates, while lower-risk fields like office work have lower premiums.
In landscaping, here are some common class codes:
- 0042: General landscaping contractors (e.g., planting, flower beds, some hardscaping)
- 9102: Basic lawn care (mow-and-blow services)
- 6217: Landscaping with tree removal or excavation
- 5221: Hardscaping projects (e.g., laying concrete or building patios)
- 0106: Tree trimming or removal off the ground
These codes impact your premium because each type of work comes with different risks. To understand which code applies to your business, check out our landscapers' class code guide.
Payroll
Your workers' comp premium is calculated based on your payroll. Higher payroll means higher premiums because with additional workers, there's a greater chance of injuries occurring.
Claims History
If your landscaping business has a history of claims, your premiums may be higher. However, if you're new to the business and haven't had any claims yet, this won't affect your premium—for now.
How to Calculate Workers' Comp Premiums for Landscapers
Calculating your workers' comp premium is straightforward with this formula:
Payroll divided by 100 x rate = Premium
1. Calculate Your Payroll
First, figure out the total payroll for your landscapers over the year. Include all employees in your calculations.
If you don't have the annual payroll numbers, take each employee's hourly rate, multiply by the number of hours they work per week, then multiply that by the number of weeks they work per year.
Divide the payroll figure by 100 to obtain the Payroll Per $100. This is how much insurance you have to pay for every $100 of payroll.
2. Find Your Rate
To find your workers' comp rate, you can use national averages or check your existing policy:
- Lawn Maintenance (Code 9102): $2.33 per $100 of payroll
- (Most Common) General Landscaping (Code 0042): $4.39 per $100 of payroll
- Hardscaping (Code 5221): $4.37 per $100 of payroll
- Landscaping with Tree Removal (Code 6217): $3.97 per $100 of payroll
- Tree Trimming (Code 0106): $7.63 per $100 of payroll
Alternatively, review your current workers' comp policy to find rates specific to your business and state.
Here’s an example:
Imagine you're a landscaping business owner in Connecticut with 5 landscapers and 1 office employee. You need to cover your employees with a landscaping workers' comp insurance policy.
Kickstand Note:
If you also hire 1099 contractors for tasks like tree trimming, irrigation, and hardscaping, make sure they provide proof of their own insurance. As long as they are insured, you won’t be responsible for their workers' comp costs.
Step 1: Calculate Payroll
We need the annual payroll of each employee.
- The 5 landscapers are making $18/hour, multiplied by 40 hours and 52 weeks for an annual payroll of $37,440 for each.
- The 1 office employee is making $19/hour, multiplied by 40 hours and 52 weeks for an annual payroll of $39,520.
Note: If your employees are all at different rates, calculate the total annual cost for each one.
Step 2: Determine Rates
Now you have to find the corresponding rate.
- The landscapers are classified as Code 0042 with Connecticut’s rate of $6.57
- The office employee should be classified as Code 9012 with Connecticut’s rate of $0.10
Step 3: Apply the Formula
Here’s how to apply the formula. You need to do it separately for each class code. Let’s do class code 0042 first.
Class Code 0042: First, add the entire landscaping payroll.
- 5 full-time landscapers: $37,440 x 5 = $187,200
Apply the formula: $187,200 (payroll) divided by 100 x $6.57 (industry rate) = $12,299.
Class Code 8810: Do the same for the office employee.
- Full-time office employee: $39,520
Apply the formula: $39,520 (payroll) divided by 100 x $.10 (industry rate) = $40
Combine both for a total annual premium $12,299 + $40 = $12,339.
Keep in mind that your final premium could vary based on state rules, your business's claims history, and any discounts your insurance carrier offers.
Annual Cost of Workers' Comp for Landscapers
Here’s a look at the average annual cost per full-time landscaper for various types of landscaping work:
Annual Cost of Workers’ Comp for General Landscapers (Code 0042)
Annual Cost of Workers’ Comp for Lawn Maintenance (Code 9102)
Annual Cost of Workers’ Comp for Hardscaping (Code 5221)
Annual Cost of Workers' Comp for Landscaping with Tree Removal (Code 6217)
Annual Cost of Workers' Comp for Tree Trimming (Code 0106)
Does it matter where you buy a Policy?
When you're shopping for workers' comp insurance for landscapers, it’s not just about finding the lowest price—there are other important factors to consider.
As a landscaper, you want a policy that offers the right coverage for your business. But even more important is choosing a reliable company that will support your employees if they get injured. You want them to get back on their feet quickly and back to work.
Look for an insurance provider with a solid reputation, strong financial stability, good customer service, and experience in the landscaping industry.
Benefits of Workers' Comp Insurance
Workers' comp insurance offers several benefits:
- Covers medical expenses for work-related injuries
- Compensates lost wages while employees recover
- Provides death benefits for families in case of a fatal incident
- Protects your business from lawsuits by injured employees
Tips to lower your Workers' Comp Premium
Implement a Safety Program
One of the quickest ways to reduce your workers' comp premium is by implementing a safety program in your landscaping business. Insurance companies often offer discounts for proactive safety measures.
For your landscaping business, a safety program should include:
- Safety Training: Provide written safety guidelines and regular training on safely operating machinery and handling chemicals.
- Proper Safety Equipment: Ensure your team has the right gear, like gloves, goggles, ear protection, and sturdy footwear. Use respirators or safety harnesses when necessary.
- Equipment Maintenance: Regularly check and service machinery to prevent accidents from faulty equipment. This includes sharpening blades and ensuring safety guards are functioning properly.
By taking these steps, you can create a safer work environment and potentially lower your insurance costs.
Check Class Codes
Incorrect classification can lead to higher premiums, so double-check that each worker is properly categorized based on the tasks they perform.
Ask about Premium Discounts
Don’t hesitate to ask your insurance provider about available discounts. Many insurance companies offer reduced premiums for businesses with strong safety programs or a history of few or no claims.
Work on Reducing Claims
Reducing your claims history, also known as your experience modification rate (ExMod), can significantly impact your workers' comp costs. Although this is a longer-term strategy, it's well worth it.
Implement safety measures and training to prevent workplace injuries, which will help lower your ExMod over time and reduce your premium expenses.
See more Cost-Saving Tips for Landscaping Workers’ Comp
Find out your exact Workers' Comp Costs
Want to know the specific workers' comp rates for your landscaping business? Use our online tool to get a customized quote and see how much you could save!
Note: The information provided in this blog is intended for general informational purposes only and is not a substitute for professional legal or insurance advice. Laws and regulations regarding workers' compensation insurance are complex and vary by state and by specific circumstances. Therefore, readers are encouraged to consult with a qualified legal or insurance professional to obtain advice with respect to any particular issue or problem they might have.
Mordechai Kamenetsky, co-founder and lead agent of Kickstand, is recognized as an expert in workers' compensation. He is passionate about helping small businesses manage risks and lower their workers' comp costs. In his articles, he educates readers and clients on the intricacies of workers' comp insurance.
As a small business owner, cheap workers' comp insurance is within reach. By classifying your workers correctly and lowering your experience modification rate, you can save big. Why spend extra money if you don't have to?
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