Tree service companies face multiple types of dangers on a regular basis. For example, a power line could lead to an electric shock, falling tree branches could damage a client’s home and a mishap with a chainsaw could send your employee to the emergency room.
If your company maintains, trims or removes trees, you’re going to need tree service business insurance. Without the right type of coverage, a major accident could uproot your company.
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What Is Tree Service Insurance?
Tree service insurance is a small business insurance policy that contains coverage types to address the risks associated with the industry. A solid tree service insurance policy covers problems like lawsuits, accidental injuries and property damage, injuries and illnesses to employees, stolen or damaged equipment, and lost business income.
For example, the general liability portion of your policy would pay for repairs if you inadvertently damage someone’s garage while trimming a tree.
Who Needs Tree Service Insurance?
If you perform tree service tasks, such as planting, trimming, maintaining or removing trees, you’ll need tree service insurance. Here are some examples of tree service professionals that would need a policy:
- Certified arborists.
- Hardscape and landscape professionals.
- Tree professionals who specialize in pest control.
- Tree pruners and trimmers.
- Tree removal specialists.
What Does Tree Service Insurance Cover?
A good tree service insurance policy has different types of small business insurance that address a wide range of problems. This includes the cost of claims, theft or damage to your business property (including your tools and equipment) and lawsuits.
You might want to start by exploring a business owners policy (BOP), which bundles together three important types of coverage. A BOP is also usually less expensive than buying each coverage type by itself.
A BOP includes:
Business Liability Insurance
This essential coverage type pays for accidental property damage and injuries caused to others. For example, if you’re trimming a tree and a branch hits a pedestrian, general liability insurance pays for their medical bills and your legal costs if you get sued. It also covers other types of problems, including advertising injury, claims of reputational harm and copyright infringement.
Commercial Property Insurance
Commercial property insurance covers the physical location of your business. It can also cover business equipment if it gets stolen or damaged by an issue that’s covered by your policy, such as a fire. This covers both leased and owned equipment—tools, supplies, furniture, computers, and business records.
Business Interruption Insurance
Business interruption insurance covers your lost income if you can’t temporarily open your tree service business due to a problem covered by your policy (such as theft of your tools and equipment). This coverage is also known as “business income insurance” and also covers the cost to move to a temporary business location due to problems like fire and wind damage.
Other Small Business Insurance Types
A BOP is a good start, but it doesn’t address all of the problems that could impact a tree service business. You’ll need to buy some additional small business insurance types to fill in coverage gaps.
Types of small business insurance to mull over include:
Commercial Auto Insurance
If you use a vehicle for your tree service business, such as hauling tools to a job site, you’re going to need a commercial auto insurance policy. Your personal car insurance won’t cover you for work-related accidents.
Examples of using your car for a tree service business include:
- You haul tools and equipment in your car.
- You conduct a business service or transaction in your car.
- A member of your crew drives your vehicle between job sites.
- You only use your car for work.
- The car is owned by your company, not by you personally.
Common commercial auto insurance coverage types include:
- Bodily injury liability. This covers accidental injuries to others if you or your employees cause a car crash.
- Property damage liability. This covers accidental property damage to others caused by you or your employees.
- Combined single limit (CSL). Rather than having two separate policy limits, this lumps together an overall, single limit for bodily injury and property damage.
- Medical payments and personal injury protection (PIP). This covers you and your passengers’ medical expenses, no matter who is at fault for the crash.
- Collision insurance. This pays to repair or replace your work vehicle after a car accident with another vehicle.
- Comprehensive insurance. This pays to repair or replace your work vehicle for problems like theft, vandalism, fire, floods, falling objects and collisions with animals.
- Uninsured (UM)/underinsured motorist (UIM) coverage. If a driver without car insurance or doesn’t have enough car insurance crashes into you, UM or UIM covers you and your passengers medical expenses. In some states, you can buy UM to cover damage to your car caused by an uninsured driver.
Commercial Umbrella Insurance
Commercial umbrella insurance is an extra layer of coverage on top of your general liability insurance. For example, if your tree service business gets hit with a $1 million lawsuit and your general liability limit is capped at $500,000, your commercial umbrella insurance would cover the $500,000 shortfall.
Tools and Equipment Insurance
This coverage pays to repair or replace lost, stolen and damaged equipment. For example, this coverage will pay to replace a chainsaw if it’s stolen from a vehicle.
Equipment Breakdown Insurance
If your tree service business relies on certain types of machinery, such as a wood chipper, equipment breakdown insurance covers the cost to replace or repair your equipment due to an unexpected breakdown. It doesn’t cover normal wear and tear.
Errors and Omissions Insurance
Errors and omissions insurance (E&O) covers claims of professional mistakes, even if the claim has no merit. For example, if you get sued because your business failed to trim a dead branch that damages your client’s roof, your E&O insurance will pay for your legal costs.
E&O insurance is also known as professional liability insurance.
Hired & Non-Owned Auto Insurance
If you or your employee use a rented car or personally owned vehicle for your tree service business, this covers accidental property damage and injuries to others. For example, if an employee uses a rented truck to transport a piece of equipment and backs into a client’s fence, this coverage would pay to repair the fence.
Inland Marine Insurance
This covers the mobile machinery and tools you use for your tree service business while in transit to a job site. You can typically add an installation floater endorsement to cover your tools, equipment and materials while awaiting installation.
Inland marine insurance is also called “property in transit” insurance.
Workers Compensation Insurance
If your tree service business has employees, you’ll likely need workers compensation insurance. Most states require it, even if you only have a single employee. It covers lost wages, medical expenses and disability benefits if your workers get sick or injured while performing job-related duties.
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What’s Not Covered by Tree Service Insurance?
A tree service insurance policy won’t cover certain types of problems. Common exclusions include:
- Floods (this requires a separate flood insurance policy).
- Earthquakes (this requires a separate earthquake insurance policy).
- War.
- Infectious diseases.
- Wrongful termination (you would need employment practices liability coverage).
- Fraudulent and intentional acts.
- Disability (this is covered by workers compensation).
Examples of Tree Service Insurance Claims
Here are some examples of tree service insurance claims and the type of coverage that would apply.
How Much Does Tree Service Insurance Cost?
The median cost of general liability insurance for a tree service business is $1,650 per year, according to Insureon. Your tree service insurance cost will depend on factors, such as:
- The types of services you provide.
- How many employees you have.
- The types of business property and equipment you have.
- Your tree service business income.
- The coverage types you buy.
- Policy limits and deductibles.
Ways to Save on Tree Service Insurance
Here are some ways you can find cheap business insurance for your tree service business.
- Compare business insurance quotes. Not all insurers price their tree service insurance policies the same, so make sure you don’t skip this step.
- Bundle policies. A business owners policy (BOP) bundles three important coverage types (general liability, commercial property insurance and business interruption insurance). It’s generally cheaper than buying each coverage type separately and you can add other coverage types to your BOP as needed.
- Categorize your workers accurately for workers comp. It’s a good idea to have detailed, accurate job descriptions for your employees. It’s important that they don’t perform duties outside of their job description. This can help you save on your workers comp policy.
- Join a trade or industry association. You might be able to save on a group rate for workers compensation if you join a trade association with at least 300 members who share the same risks as your business.
- Pay your premium upfront. You may qualify for a discount if you pay your premium in full for the entire year, rather than monthly.
- Bump up your commercial car insurance deductible. If you choose a higher insurance deductible, your insurance company will pay less if you file a claim, which means you’ll pay less for insurance premiums.
Where Can You Get Tree Service Insurance?
Most small business insurers sell common types of business insurance that you can customize for your tree service business. A good place to start is with a BOP, then you can add to your policy with other important coverage types like commercial auto insurance and workers compensation insurance.
Small business insurance companies that offer tree service insurance include:
- Acuity
- Allianz
- Allstate
- American Family Insurance
- AmTrust Financial
- Auto-Owners Insurance
- Berkshire Hathaway
- Chubb
- Cincinnati Insurance
- Clear Blue Insurance Co.
- CNA
- Erie Insurance
- Farmers Insurance
- Frankenmuth Insurance
- The Hanover
- The Hartford
- Liberty Mutual
- Nationwide
- State Farm
- Tokio Marine
- Travelers
- Utica First Insurance
- Westfield Insurance
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Tree Service Insurance FAQ
Why would a tree service business need insurance?
The tree service industry faces multiple problems, such as falling tree limbs causing injuries or property damage, exposure to power lines and stolen equipment. You’ll need a small business insurance policy to cover these types of problems.
A good place to start is with a business owners policy (BOP). It covers problems like lawsuits, stolen or damaged business property, and lost income. You can add more coverage types as necessary, such as workers compensation insurance.
What is liability insurance for a tree service business?
A general liability insurance policy for a tree service business covers property damage and injuries that you or your employees accidentally cause to others. It also covers other types of problems, such as claims of reputational harm, advertising injury and copyright infringement.
Does my tree service business need a commercial auto policy?
Yes, if you use a vehicle for your tree service business, you will need a commercial auto policy. For example, if you drive a truck to transport your tree trimming tools from one job site to another. Your personal car insurance policy won’t cover you for work-related accidents.
