Landscaping insurance might feel like just another bill, but canceling your policy exposes you to risks you may not have considered. It might save you money today, but it could cost you far more in unexpected claims, legal troubles, or lost contracts.
Before you drop your coverage, here’s what you need to know.
How Landscaping Insurance Protects Your Business
Landscaping insurance is a safety net that keeps your business financially secure when unexpected problems arise. Some key benefits of insurance include:
- Property damage coverage: If your lawnmower throws a rock through a client’s window, insurance is designed to help cover the repair costs.
- Third-party injury claim protection: You could be held responsible if a client or bystander gets injured due to your work. Insurance helps cover medical expenses, legal fees, and potential settlements.
- Contractual compliance: If you don’t have insurance, many commercial clients, landlords, and municipalities may refuse to hire you. Without proper coverage, you could miss out on valuable contracts or face fines for non-compliance.
- Financial security: If an unexpected claim arises, it could lead to significant expenses that put your business at risk. Insurance provides a financial safety net, ensuring that a single accident or lawsuit doesn’t derail your operations.
Canceling your policy means losing these protections, exposing your business to significant financial risks.
Pro Tip: Learn more about the benefits of landscaping insurance in our comprehensive guide.
Understand the Risks of Canceling Your Landscaping Insurance
Canceling your insurance early can lead to serious consequences. Even if you think your business is low-risk, unexpected events can happen anytime.
Financial Liability Falls on You
Without coverage, you are responsible for any accidents or damages. This can quickly become overwhelming, especially if a claim involves high costs.
Accidents and Property Damage
If your landscaping work accidentally causes damage, you’ll have to cover the cost of repairs yourself.
Example: A lawnmower throws a rock and shatters a client’s window. The replacement costs $800, and without coverage, you’re stuck with the bill.
Injury Claims
If a third party is injured while you’re working, you could face costly medical bills and legal action.
Example: A client trips over a hose left on the driveway and fractures their wrist. You have to pay for their hospital bills, rehabilitation, and even a lawsuit settlement — costing you tens of thousands of dollars.
Pro Tip: Learn what to do if a client sues your landscaping business — and how your insurance coverage keeps you protected.
Contract Violations
If you work with commercial clients, landlords, or municipalities, they likely require proof of insurance before hiring you. Canceling your policy could breach contracts, resulting in lost jobs or even legal penalties.
Example: You win a $10,000 landscaping contract with a commercial property, but they require insurance. Since you’ve canceled your policy, you lose the contract, and your business takes a major financial hit.
Equipment Theft or Damage
Landscaping equipment is expensive. If your tools or machinery are stolen or damaged, you are responsible for replacing them if you don’t have insurance.
Example: Your trailer, loaded with $15,000 worth of mowers, trimmers, and blowers, gets stolen overnight. You’ll have to replace everything yourself or put your business on hold.
Theft and Employee Dishonesty
If an employee steals cash or equipment from your client, bonding can help cover the loss.
Example: Your employee takes a $3,000 riding mower from your client’s storage unit and disappears. You have no financial backup, and replacing it comes directly out of your pocket.
You Might Not Get a Refund on Your Premium
If you prepaid for your policy, you may assume you’ll get a full refund upon cancellation. However, many insurers do not offer prorated refunds.
Insurance Canopy policies are typically non-refundable once they go into effect, as premiums are considered fully earned at that point. That means canceling mid-term usually won’t result in getting any money back.
Exemption: If a compliance review within the first three days determines your business does not meet underwriting guidelines, the policy will be canceled, and you’ll receive a full refund. This scenario is uncommon, but it’s worth noting if you’re concerned about eligibility.
It May Be a Challenge To Secure Contracts
Many clients, especially commercial properties and government contracts, require proof of continuous insurance coverage. A gap in your insurance history can raise red flags, making it harder to secure high-value jobs.
Some clients may see lapsed coverage as a risk and choose a competitor with a more consistent track record. Maintaining uninterrupted coverage shows reliability and professionalism, helping you win more contracts and build long-term client relationships.
Pro Tip: Explore practical ways to generate more landscaping client leads and grow your business.
What to Do Instead of Canceling Your Policy
If you’re struggling with insurance costs or no longer need the same level of coverage, canceling isn’t your only option. Consider the following:
- Adjust your coverage to fit your needs: Talk with your insurer about modifying your policy. You may be able to lower coverage limits or remove unnecessary endorsements.
- Look for more affordable insurance options: If your current policy is too expensive, shop for a different provider to see if you can save money while protecting your business.
- Ask about discounts: Many insurance providers offer savings bundling policies, paying annually rather than monthly, or having a claim-free record.
When Should You Cancel Your Insurance Policy?
While keeping insurance active is typically the best option for protecting your business, there are certain situations where cancellation makes sense.
You’re Transferring Ownership of Your Business
If you’re selling your business, the new owner will likely need their own insurance policy. Most policies are non-transferable, meaning the coverage does not automatically carry over when ownership changes. Before finalizing the sale, confirm with your provider whether cancellation is necessary or if there’s an option to adjust the policy for the new owner.
You’re Moving to a New Insurance Provider
Switching providers is common if you find a policy with better coverage, lower costs, or improved benefits. Before canceling, ensure the new policy starts immediately after the old one ends — any gaps in coverage could expose your business to financial risks.
You’re Shutting Down Your Business Operations
Insurance may no longer be necessary if you’re closing your business permanently. However, check with your provider to determine if you must maintain coverage for any outstanding liabilities, such as pending customer claims or contractual obligations.
How to Properly Cancel Your Landscaping Insurance
Canceling your landscaping business insurance isn’t a decision to take lightly. Handling the cancellation process helps you avoid unexpected charges, coverage gaps, or potential liabilities. If you’re sure canceling is the right choice, follow the steps below to ensure a smooth transition.
Initiate the Cancellation Process
Cancellations can be initiated directly from your online dashboard. If you have any questions or need assistance, our support team is available to help guide you through the process.
Provide the Necessary Information
When submitting a cancellation request, be prepared to include:
- Your policy number and business name
- The reason for the cancellation
- Any supporting details that could help speed up processing
Receive and Keep Written Confirmation
Once your request is approved, a written confirmation will be sent to you. Keep this document as proof that your policy has been officially canceled, ensuring no future billing or coverage confusion.
Questions About Canceling Your Landscaping Insurance
Will I get a refund if I cancel my insurance early?
Most likely not. Landscaping insurance policies are non-refundable once coverage begins. However, in rare cases, such as if your business does not meet underwriting requirements within the first three days, you may qualify for a refund.
Is there a penalty for canceling my policy early?
There is no cancellation fee for ending your policy before its expiration date. However, since premiums are fully earned once coverage begins, canceling early does not usually result in a refund. Before making a decision, review your policy terms to understand how cancellation affects your coverage.
Can I reinstate my policy after canceling it?
Reinstating a canceled policy is not guaranteed. If your coverage has lapsed, you must reapply for a new policy, which may involve updated underwriting requirements and pricing.
What happens if a claim is filed after I cancel my insurance?
If a claim arises after your policy has been canceled, it will not be covered. Landscaping insurance policies operate on an occurrence basis, meaning the incident must have happened while the policy was active. If you cancel your coverage and a claim is filed for an event that occurred after cancellation, you’re responsible for any related expenses.
Can I transfer my policy to a new business owner?
Landscaping insurance policies are non-transferable. If you sell your business or transfer ownership, the new owner needs to apply for their own coverage.
Need Help With Insurance Decisions? We’re Here for You!
Before you cancel your landscaping insurance, take a step back. Can you cover an unexpected lawsuit? Replace stolen equipment out of pocket? Keep up with contractual requirements? If the answer is no, keeping your coverage — or adjusting it wisely — is likely the better move.
If you’re unsure what to do, contact us to discuss your options and make the best decision for your business.
