When arranging insurance for your landscaping or gardening business, there’s one detail you don’t want to overlook: making sure that the name on the policy – the ‘Insured’ name – exactly matches your business’s full legal entity name. This might sound like a simple thing, but many businesses don’t realise how important it is.
Ensuring these names match is the single most important part of an insurance policy. If the Insured name isn’t correct, or the name entered as the Insured isn’t a legal entity, then the insurance contract becomes invalid and could result in a claim being denied.
What is a legal entity name?
A legal entity name is the official name of your business as it appears in government records. It’s what you use on legal documents – like contracts, tax filings, and insurance policies – and it can be different to a business name.
Depending on your structure, this name could look different:
• Sole traders: your own name or a registered trading name
• Companies: typically ends with ‘Pty Ltd’ in Australia
• Trusts and partnerships: usually includes the trustee’s name plus the trust name.
“Getting the legal entity name right is fundamental to insurance validity. It’s a simple fix that can prevent complex disputes.” ~ Australian and New Zealand Institute of Insurance and Finance (ANZIIF)
Below are a few examples for different landscaping business types and structures…
Registered Company: a landscaping company operates under the name ‘Green Gardens Landscaping,’ but its official registered name is ‘Green Gardens Landscaping Pty Ltd’. If the policy only lists ‘Green Gardens Landscaping,’ a claim could be scrutinised by the insurer on the grounds that the name insured doesn’t legally exist.
Sole trader: John Smith, a sole trader, runs his gardening business as ‘Smith’s Garden Care’. While the trading name is registered, his legal entity remains John Smith as an individual. To avoid coverage issues, his policy should list ‘John Smith trading as Smith’s Garden Care’
Trust: Sarah Green operates her landscaping design business as ‘Creative Landscape Solutions’ under a family trust arrangement. The correct policy listing is ‘Sarah Green as trustee for The Green Family Trust, trading as Creative Landscape Solutions’. Omitting the trust details could complicate claims.
Did you know?
Landscaping businesses are more likely to face rejected claims due to incorrect entity naming than many other trades, simply because many operate under sole trader models.
Tips for getting it right
To avoid the common pitfalls, here are some simple steps to follow…
1. Use the exact registered name: Always use the full legal name, including abbreviations like ‘Pty Ltd’ or ‘LLC’. Avoid using nicknames or shorter versions
2. Check on renewal: Business names and structures can change, so verify your policy details annually.
3. Cover all entities: If you operate multiple landscaping services or subsidiaries, include all relevant legal names.
4. Include All Entities If Needed: If you operate through multiple entities, consult with an insurance broker about which names should be included. Missing even one entity could mean part of your business isn’t covered.
5. Consult an Insurance Broker: Insurance brokers are experienced in these details. They can help ensure the name on your policy is accurate and that your business has the protection it needs.
How to confirm your legal entity name
If you’re unsure of your legal entity name, check your official documents, like your business registration or licensing paperwork. For companies, refer to the name listed on your tax filings, or a quick search on the ASIC website will show your registered name. Trusts will have their name in the trust deed.
The Takeaway
Regardless of your business structure or branding, the name on your insurance policy must align precisely with your legal registration. Including the correct legal entity ensures there’s no ambiguity when it comes to claims, lawsuits, or verifying your coverage. It’s key to making sure your insurance covers you fully when you need it. Always double-check this with your broker to avoid costly mistakes.
For more information on broker services, or for expert insurance advice, contact Midland Insurance Brokers. You can find the phone number of your nearest office at midlandinsurance.com.au or just jump in and dial 1300 306 571. If you’d rather email, send to landscape@midlandinsurance.com.au.