Author, Drew Garcia, Vice President, Landscape Group, Rancho Mesa Insurance Services, Inc.

Landscape contractors have varying levels of exposure when it comes to installation projects. However, they virtually all share the same common coverage gap for trees, plants, shrubs, and lawns. 

An installation floater covers property being installed by a contractor. For landscapers, this could be a number of different items depending on the scope of work: irrigation systems, hardscape, low voltage lighting, and plant material to name a few. Most installation floaters will exclude plants, trees, shrubs, and lawns within the policy under “property not covered.” 

The property being installed is generally insured under a few different scenarios. Temporary storage at the yard, at the jobsite, in transit, and installation at the jobsite. Common losses include fire, theft, and accidental damage.

The obvious concern is a scenario in which plant material is damaged or stolen and the insurance policy denies the claim due to the common exclusion. 

When considering the limit for your installation floater, you will want to estimate your average job value for material cost and labor cost to install the product. You will also need to know if the policy is written on blanket coverage or scheduled location. If a project comes up that is out of the ordinary, you can always increase the limit for that specific project by engaging your insurance provider in advance of take-off.

The cost of plant material and labor changes each year. The broker price index for the nursery, garden, and farm supply stores has increased by about 43% since 2019. Wage inflation has continued to drive payroll cost. Be sure to re-evaluate your exposure and ensure that plants, trees, shrubs, and lawns are covered for your installation exposure by working with your insurance professional and carrier to remove the exclusion completely, or amend the limit to provide a max dollar amount per tree, plant, shrub, or lawn being installed.

To discuss this coverage or review your current policy, contact Drew Garcia at (619) 0200 or drewgarcia@ranchomesa.com.