Tree care is one of the most dangerous occupations, and with so many risks, a robust business insurance program is an absolute must for any arboriculture operation. The range of tree service risks is vast, from noise exposure and worker injuries to damaged roofs and utility lines.
Though most tree care businesses understand the importance of general liability insurance, traditional commercial policies aren’t designed to fully cover tree service risks. A business in a high-risk industry like tree care demands rigorous and comprehensive specialty insurance that addresses the business’ specific needs. Most commercial insurance policies don’t even recognize these unique risks, not to mention covering them. Both wholesale brokers and tree care businesses can benefit from having access to commercial coverage that’s built for the particular perils of tree care work.
Common Tree Care Business Risks
Every business contends with risks, but tree care businesses work in multiple complex environments ranging from urban to rural landscapes, and through all four seasons.
Property damage
One of the most common risks tree care businesses face is damage to property of others. When dealing with trees and branches weighing thousands of pounds, and when working near utility lines, buildings, and automobiles, costly accidents can happen in the blink of an eye, leaving tree care business owners with potentially crippling third-party liability claims.
Worker injuries
Worker injuries are a persistent challenge for tree service businesses. Though implementing injury prevention practices may reduce the risk of on-the-job injuries, accidents can still occur. Traffic incidents, contact with objects, and slips, trips, and falls are just a few of the most prevalent threats that can result in worker injuries. Tree care workers can also suffer injuries from exposure to environmental hazards – like heat and cold – and to pesticides and herbicides.
Auto liability claims
Another especially dangerous and often-overlooked activity tree care workers regularly engage in is driving to and from job sites. In addition to the threat of slips, trips, and falls; contact with objects; and property damage, perhaps the most persistent threat tree service businesses have to deal with is when workers get behind the wheel. The majority of tree care company insurance claims (nearly 73%) involved vehicles, which can be especially costly for both employees and business owners. Auto incidents can leave employees injured, in addition to creating third-party liability claims, damaging business vehicles and equipment, and leaving employers shorthanded.
Source: TreePro State of the Tree Care Industry: 2020
Theft of business property and other inland marine losses
Theft of property is a threat to any business, and since tree care professionals often use expensive equipment, thieves might target these businesses. Stolen property can cost tree service businesses hundreds of thousands of dollars and may incur additional losses from missed opportunities due to stolen or damaged equipment. In 2021, a Tennessee tree care business suffered over $300,000 in losses when thieves broke into the property and stole multiple pieces of equipment and specialized vehicles.
The Trend Toward Excess & Surplus Lines
For a tree care business owner, a good liability insurance program can offer property damage coverage and help protect the business from the full costs of personal injury liability claims. Unfortunately, many commercial insurance policies are poorly equipped to handle the complexities of tree care companies.
Today, brokers and tree service businesses alike are feeling the increasing need for specialty insurance tailored to the specific needs of arborists. The trend toward excess and surplus lines continues to grow as businesses and carriers focus on customization and specialization. In less than five years, excess and surplus lines premiums soared from 5.2% of overall property and casualty premiums to almost 9% in 2022. The upward trajectory of E&S lines is expected to continue as carriers exercise more caution, hardening the market and making it more difficult and more expensive for businesses to find the correct coverage.
How Arborist Insurance Can Help
Arborists know how many ways a job can go wrong, and how crucial it is to have the right insurance in case that happens. To capitalize on growth opportunities and run a successful business, tree care pros need customized coverage from a specialty insurance partner who understands the nuances of their business. For example, a boilerplate commercial insurance policy might cover a straightforward claim from a tree care company that accidentally damaged a customer’s garage when a branch fell. But would that same policy cover pollution liability for pesticide contamination or property damage liability claims related to snow and ice removal? The diverse risks of arborists and other tree care companies show how important it is for an insurance partner to identify, understand, and insure against the threats these businesses encounter on a regular basis.
Coverage Customization: How TreePro Can Help
Insurance benefits should go beyond the basics of liability and workers’ comp coverage. Instead, brokers and their tree care clients should rest assured that they have the customized coverage they need to operate and grow a successful business. NIP Group’s 35+ years of tree care insurance experience not only means we understand the business but have also spent years tailoring the coverage to meet all the needs of tree care companies. Whether it’s damage from cranes or pollution from noise, TreePro offers the comprehensive coverage options to protect tree service businesses from the unexpected.
NIP Group’s tree services insurance empowers brokers and businesses
NIP Group’s monoline coverages empower brokers and businesses to customize their accounts and get the exact coverages they need and want. Our LiabilityEdge™ program offers general liability insurance tailored to specific classes – including tree service and arborist – and serves as the foundation of a comprehensive specialty insurance policy. The TreePro program expands coverage to focus on the many potential perils that tree care pros encounter in their daily work, like damage to customer property, employee and third-party injuries, and inland marine losses. A few coverage highlights include:
- General and auto liability
- Excess liability up to $25 million
- Wildfire liability
- Cyber liability
- Contractors pollution liability
- Arborist errors & omissions
- Loggers broad form
- Utility line clearance
- Crane and boom exposures
- Lawn care, irrigation, and tree spraying
- Snow and ice removal
Conclusion
There’s no substitute for proper training and safety procedures. Likewise, there’s no substitute for a comprehensive specialty insurance policy. An arborist wouldn’t choose to wear only some of their safety gear, and your tree care business clients shouldn’t be left with commercial coverage that only addresses a handful of their needs.
Give your clients the industry expertise and comprehensive coverage they need to succeed. Submit your accounts online or speak with an expert today to learn more about TreePro.
Sources:
- https://www.osha.gov/tree-care/hazards-solutions#
- https://www.tcia.org/TCIA/TCIA/Blog_Items/2013/Common_Tree_Care_Injuries_and_How_to_Prevent_Them.aspx
- https://tcimag.tcia.org/safety/tree-work-safety-by-the-numbers/
- https://tcimag.tcia.org/safety/tree-worker-safety-update/
- https://tcimag.tcia.org/wp-content/uploads/2021/02/TreePro_SOI_Report_2020.pdf
