Tree Service Insurance: What You Need To Know

Tree service companies should carry at least two types of insurance: general liability and workers' compensation. This protects homeowners, workers, and pedestrians from accidents, damage, and injuries. General liability insurance covers property damage and injuries caused by falling branches or debris, while workers' compensation insurance covers injuries sustained by employees. Tree service is a dangerous job, with workers operating at extreme heights, using hazardous tools, and working near power lines. Without insurance, homeowners may be held liable for any accidents or damage that occurs during tree service work.

General liability insurance

The cost of general liability insurance for tree service businesses can vary depending on several factors, including the company's coverage needs, the number of employees, claims history, and exposure to risk. Tree service companies typically obtain general liability coverage from the excess and surplus lines (E&S) market, which specialises in insuring high-risk businesses and can handle more expensive claims. As a result, the average cost of tree insurance may be higher than a standard market plan.

To obtain general liability insurance for a tree service business, it is recommended to consult with licensed agents or insurance providers who can help determine the specific needs and requirements of the business. They can guide you through the process of obtaining quotes, comparing coverage options, and selecting the most suitable policy for your tree service company.

Workers' compensation insurance

Workers' compensation covers medical expenses, lost income, retraining expenses, and permanent injuries or disabilities for employees who are injured or fall ill on the job. It also provides survivor benefits in the tragic event of a worker's death. This type of insurance is required by law in most states and is designed to ensure that employees receive the necessary financial support and medical treatment while also protecting employers from legal liability.

When choosing a workers' compensation policy for a tree service business, it is important to ensure that the policy is specifically tailored for the industry. It should cover injuries and illnesses resulting from various tree-related tasks, such as falls from bucket trucks, electrocution, chainsaw injuries, and more. The policy terms, limitations, deductibles, and fees should be carefully considered and weighed against the premium costs to ensure the best value.

Additionally, it is crucial to understand the state-specific requirements for workers' compensation. While most states require employers to carry this insurance, some states, like Ohio, North Dakota, Wyoming, and Washington, mandate that businesses obtain coverage through their state programs. Texas is the only state that allows employers to opt out of workers' compensation obligations.

To reduce workers' compensation premiums, tree service businesses can implement safety programs, provide appropriate personal protective equipment (PPE), document safety policies, and adequately train their employees in electrical hazards, first aid, CPR, lockout and tagout procedures, and workplace safety. Good record-keeping of occupational injuries and illnesses is also essential, as it can positively impact premium audits and demonstrate a commitment to safety.

Professional liability insurance

When considering professional liability insurance, tree service businesses should evaluate their specific risks and exposures. The cost of this type of insurance will depend on factors such as the size of the business, the number of employees, the scope of services offered, and the company's claims history. Obtaining quotes from multiple insurers and consulting with knowledgeable insurance agents can help tree service companies find the right level of coverage at a competitive rate.

Inland marine insurance

In summary, inland marine insurance is an essential coverage for tree service businesses to protect their equipment and tools while they are being transported or used off-site. By having this insurance, tree service companies can safeguard their assets and ensure they are protected in case of theft, damage, or loss.

Commercial property insurance

In addition to commercial property insurance, tree service businesses should also consider other types of coverage, such as general liability insurance, commercial auto insurance, and workers' compensation insurance, to ensure they are adequately protected from potential risks and financial losses.

The cost of commercial property insurance for a tree service business will depend on various factors, including the types of services provided, the number of employees, the business property and equipment covered, and the chosen coverage types, limits, and deductibles. To find the best rate, it is recommended to compare quotes from different insurance providers and consider bundling policies or joining a trade association for a group rate.

Frequently asked questions