Sure we put mulch close to the customers house. If you are concerned they have termite control mulch , but I haven't bothered. The particle size in the mulch I use (triple grind hardwood) is so small that they wouldn't set up residence, not to mention I only put down 1-2" so the mulch is pretty well decomposed after a season. Now if the mulch is piling up from excessive over mulching, you could have a problem with insects and maybe termites setting up camp. Personally I have never seen termites in mulch, many times in rotting retaining walls and stumps though! Remember...too much mulch is usually not a good thing. Especially up against trunks of trees and shrubs as it holds moisture making a good environment for insects to set up camp and do their damage.<p>Hope this helps.
Tell the customer the mulch will lure the termites away from the house, ya know, give em an easier meal. Better in the mulch than the house <p>With our customers that are concerned with it, we offer to use rock or pebbles around the perimeter if they would rather have it than mulch near the house.