Clients want to hire landscapers they can trust, and getting bonded is one way to prove your credibility.
Whether required in your state or for a particular project, understanding how to get bonded can set you apart from the competition. As you get started, you might wonder exactly what getting bonded involves, how much it costs, and if it’s worth your time.
What Is a Landscaping Bond?
A landscaping bond is a surety bond landscaping companies may need to secure before starting a project or working with clients. It acts as a financial guarantee that the company will complete the work according to the agreed-upon terms. It can also protect your clients if one of your employees steals from them while doing landscaping work.
Unlike landscaping insurance, which covers property damage and accidents, a bond compensates the client directly if a theft, breach, or non-compliance occurs. A landscaping bond involves three parties:
- Principal (you)
- Obligee (client or government agency requiring the bond)
- Surety (bonding company)
Remember: Your business has to reimburse any claim amount paid out by the bonding company. Reduce your risk by hiring trustworthy employees and implementing strict security measures.
What Kinds of Bonds Do Landscaping Businesses Need?
Not all landscaping businesses need to be bonded, but having one can protect both your company and your clients. The most common types include:
- License and permit bonds: Guarantees that a business complies with state or local regulations. They are typically required when you are operating in industries that have specific licensing or regulatory requirements, such as construction, healthcare, or real estate.
You may also need them to secure certain business permits, ensuring you meet local standards before you can legally operate. Clients often request this bond as proof that your business follows the necessary legal and industry standards.
- Contractor bonds: Ensures that a contractor will complete a project as agreed upon. They are most commonly required for government contracts, large commercial projects, or when working with public entities. These bonds protect clients from potential delays, poor-quality work, or financial loss due to the contractor’s failure to fulfill their obligations.
- Business service bonds: Protects clients from financial loss if an employee commits theft while on the job. They provide reassurance to customers, especially in residential or high-value commercial settings, that your business is trustworthy.
How Much Does a Landscaping Bond Cost?
The cost of a landscaping bond varies, but most bond premiums range from 1% to 5% of the total bond amount. For example, if you need a $10,000 bond, you could pay anywhere from $100 to $500 annually.
Several factors influence your final rate, including:
- Bond amount: Higher coverage limits mean higher premiums
- Risk level: If your business is considered high-risk, your rate may be higher
- Business history: Established businesses with a clean record may qualify for lower premiums
How to Get Bonded for Landscaping
You can apply for a landscaping bond entirely online with Insurance Canopy to get bonded for landscaping. The process is fast and secure — follow the steps below to get a quote in 10 minutes or less.
- Review your state’s regulations or client requirements to determine your coverage needs
- Enter your business details to start the application
- Complete your purchase and get bonded instantly
What Are the Requirements for Getting a Landscaping Bond?
Eligibility for bonding is typically determined by several key factors. Business structure plays a role, as sole proprietors, LLCs, and corporations are all eligible to be bonded. Industry experience may also be required, with some bonds needing proof of previous work in landscaping.
Additionally, claims and crime background can influence eligibility, as certain bond types may involve a review of past legal issues or claims history.
How Does a Bond Protect Your Landscaping Business?
A landscaping bond protects both your business and your clients. For instance:
- A license and permit bond ensures your business complies with local regulations and operating standards, reducing the risk of legal or financial trouble.
- A contractor bond guarantees that you meet contract terms and will complete projects according to industry standards, protecting your clients if you fail to deliver as promised.
- A business service bond reassures customers they can file a claim and be compensated if theft occurs.
A bond also builds credibility. Many homeowners, businesses, and even local governments prefer working with bonded landscapers because they show professionalism and financial responsibility.
Plus, even if a bond isn’t required in your area, getting one gives you a competitive edge. Clients feel more comfortable hiring a bonded business, knowing they won’t be exposed financially if something goes wrong. Securing a bond is a wise investment if you want to attract high-value contracts and grow your landscaping company.
Do Landscapers Need to Be Licensed and Bonded?
State and local regulations determine whether landscapers need to be licensed and bonded. A bond may also be necessary, depending on the type of landscaping work performed.
In California, the answer to whether landscapers need to be licensed and bonded is a hard yes. Landscapers must obtain a $25,000 surety bond through a licensed surety company to get a contractor’s license. This bond covers potential damages, license law violations, and unpaid employee wages.
You may need a license if you:
- Work on projects above a specific dollar amount
- Install irrigation systems or drainage solutions
- Apply pesticides or fertilizers
- Build retaining walls or other structural elements
Note: Since state requirements vary, check with your licensing board or local government to ensure compliance
What Happens When a Customer Files a Claim on Your Bond?
If a client believes your business failed to meet its obligations, whether through unfulfilled work, regulatory violations, or employee theft, they can file a claim with your bonding company. Here’s what happens next:
- The bonding company reviews the claim and investigates
- The company compensates the client up to the bond amount
- Your business reimburses the bonding company for the payout
A bond can help with:
- Unfinished work on a commercial project: Your landscaping company wins a contract for a large corporate office but fails to complete the project due to financial issues. The client files a claim on your contractor bond, ensuring they receive compensation to hire another company and complete the job.
- Employee theft at a residential property: Your landscaping team is hired for ongoing yard maintenance at a high-end home. The homeowner later discovers that a valuable tool set is missing and suspects your employee. With a business service bond in place, the client is reimbursed for their loss, and the company maintains its credibility.
- Operating without a required permit: Your landscaping business starts work on a new neighborhood development but fails to secure the necessary permits. The local government fines your business and requires work to stop until compliance is met.
If the client or regulatory agency files a claim, a license and permit bond can provide financial protection to affected parties, ensuring that any penalties or required corrections are covered. However, your business will ultimately need to reimburse the bonding company.
Best Practices to Reduce the Risk of Bond Claims
A landscaping bond protects clients from dishonest acts (like theft) or non-compliance with contractual obligations. However, these proactive best practices should be implemented to minimize risks and foster trust with customers.
Comply with local regulations and permits
Follow local laws, zoning regulations, and permits to avoid legal issues. Keep up with regulatory changes to prevent complications that could lead to claims under your license and permit bond.
Meet contractual obligations consistently
Always fulfill the terms, deadlines, and quality standards outlined in your contracts. Delivering on your promises reduces the risk of claims under your contractor bond.
Maintain accurate documentation
Keep detailed records of contracts, transactions, and customer communications. Clear documentation helps resolve disputes and protects your business if a claim arises.
Conduct employee background checks and verify credentials
Screening employees before hiring reduces the risk of fraudulent activity. Verify qualifications to ensure they meet industry standards.
Educate staff on legal obligations and customer service
Train employees on ethical conduct, contract terms, and client interactions. Well-informed staff are less likely to make costly mistakes.
Foster a culture of accountability and professionalism
Set clear expectations for honesty and integrity. Employees who understand their responsibilities are more likely to uphold business values
Communicate transparently with clients
Be upfront about services, pricing, and policies. Clear communication prevents misunderstandings that could lead to bond claims.
Questions Landscapers Ask Us About Bonds
Do I need a bond if I already have insurance?
Yes, you still need a bond if you have insurance. Insurance covers property damage and accidents, while a bond protects clients from employee theft (business service bond), ensures compliance with local regulations (for license and permit bonds), and guarantees you fulfill contractual obligations (for contractor bonds). We recommend both for full coverage.
How long does it take to get bonded for a landscaping business?
Landscapers can get bonded online in minutes with Insurance Canopy.
Can I dispute a bond claim if I believe it’s unfair?
Yes, you can dispute a bond claim if you provide evidence to the bonding company to contest a claim. The company will investigate before making a decision.
How long does a bond claim investigation take?
The length of time a bond claim investigation will take depends on the complexity of the case. Some claims resolve within weeks, while others may take longer.
Can I set up a payment plan for claim reimbursements?
Yes, some bond companies offer payment plans to make claim reimbursements more manageable.
- Some allow you to pay in installments rather than a lump sum
- Interest may be applied to the repayment amount, depending on your contract terms
- Your indemnity agreement outlines how long you have to repay the surety bond
Failing to repay could lead to legal action or damage to your credit. Review your bond terms and discuss repayment options with the surety company.
Show Clients You’re a Trusted Landscaper – Get Bonded Today!
Don’t let a missing bond hold you back from landing new clients or meeting legal requirements. Apply online today and get bonded in minutes!
