Bonds and insurance for NC landscaping companies
What bonds and insurance does a landscaping business need in North Carolina?
Two state boards require a $10,000 surety bond
The landscape board and the irrigation board each require a $10,000 surety bond or letter of credit before they license you. The pesticide license does not list one.
Both bonds are the same face value, but they are separate instruments. A company holding both licenses carries two bonds. The pesticide license page at NCDA&CS lists fees and certification periods and no bond.
A bond is not insurance for you. It is a promise to the customer, backed by the surety, that you will follow the licensing law. If the surety pays a claim, it can come to you for the money.
| License | Bond required | Who must carry it |
|---|---|---|
| Landscape contractor | $10,000 surety compliance bond or letter of credit | Each licensee, unless named on the company bond |
| Irrigation contractor | $10,000 surety bond or letter of credit | Licensed individuals and licensed entities |
| Pesticide applicator | None listed | Not applicable |
$10,000The landscape board requires an original, signed $10,000 NC Landscape Contractor's Surety Compliance Bond or an irrevocable letter of credit. — NC Landscape Contractors' Licensing Board, retrieved 2026-09-27
$10,000The irrigation board requires a $10,000 surety bond or a $10,000 irrevocable letter of credit, kept active for the life of the license. — NC Irrigation Contractors' Licensing Board, retrieved 2026-09-27
Who the landscape bond has to name
Every licensed landscape contractor carries an individual bond. The one exception is a person named on the company's corporate bond.
That makes the bond wording worth checking. If you and a crew leader both hold the license, one corporate bond that names you both can do the job of two. Ask the surety to list every licensee by name.
The board says the bond protects homeowners against dishonest or incompetent conduct. That is the claim a customer would bring. The license steps around the bond are in the landscape license guide.
Every licensed landscape contractor must carry an individual surety bond unless specifically named on the company's corporate bond. — NC Landscape Contractors' Licensing Board FAQ, retrieved 2026-09-27
The irrigation bond covers entities as well as people
On the irrigation side, both licensed individuals and licensed businesses carry a bond. Corporations, partnerships and LLCs are named.
The board also wants the bond to stay active for as long as you hold the license. A bond that lapses because a premium went unpaid leaves the license exposed.
Set the bond renewal next to the December 31 license renewal. The irrigation license itself is covered in the irrigation contractor license page.
The irrigation board says all licensed business entities, including corporations, partnerships and LLCs, and all licensed individuals must hold a surety bond or letter of credit. — NC Irrigation Contractors' Licensing Board FAQ, retrieved 2026-09-27
Workers' compensation starts at three regular employees
North Carolina's workers' compensation law generally covers any business with three or more regular employees. Covered businesses must insure or qualify to self-insure.
Seasonal crews make the count tricky. The Industrial Commission's test is employees on a regular basis. Three people on the mowing route all summer is three employees.
Covered employers either buy workers' compensation insurance or qualify as a self-insured employer. For a small crew, insurance is the practical route.
3 employeesThe NC Industrial Commission says businesses employing three or more employees on a regular basis are generally covered by the Workers' Compensation Act. — North Carolina Industrial Commission, retrieved 2026-09-27
Corporate officers count toward the three
If the company is a corporation, its officers count as employees for the three-person test. Two officers and one worker already make three.
The Industrial Commission gives exactly that example. It adds that officers may exclude themselves from coverage under the policy. The business still has to carry the policy for the others.
This is one reason the entity choice matters for a small crew. The structures are compared in the entity comparison.
Corporate officers count toward the three-employee test, so a corporation with two officers and one employee must provide workers' compensation coverage. — North Carolina Industrial Commission, retrieved 2026-09-27
Check each board's requirements before you buy cover
Buy the bonds and policies the boards and the law actually ask for first. Everything else is a business decision you make with your agent.
Start with the two $10,000 bonds if you hold those licenses. Then check your headcount against the three-employee rule. Commercial auto, general liability and equipment cover are not set by these boards, so price them on your own risks.
Put every bond and policy renewal in one calendar. The license dates that sit beside them are in renewals and continuing education.
$10,000A landscape license applicant must provide the $10,000 bond or letter of credit as part of becoming licensed. — NC Landscape Contractors' Licensing Board, retrieved 2026-09-27
Questions
Does a sole proprietor with no employees need workers' comp in NC?
The Industrial Commission says the Act generally covers businesses with three or more regular employees. A sole owner with no employees is usually below that line, though a general contractor may still ask for proof of cover.
Can one bond cover both the landscape and irrigation licenses?
Each board sets its own bond requirement for its own license, so plan on two separate $10,000 bonds or letters of credit if you hold both licenses.
Is the $10,000 bond what I actually pay?
No. $10,000 is the bond's face value, the most the surety would pay on claims. You pay the surety a premium, which it sets, and you may owe it back for any claim it pays.