Arboriculture comes in all shapes and sizes, and it happens to be one of the most sought-after services in the United States. From residential developments in urban areas to commercial plots of land (and everything in between), tree care is in demand.
What’s caused this boom, you might ask? It’s not a linear answer, but as population centers grow and sustainability becomes a priority, the critical role that trees play is not being overlooked. In fact, trees are a focal point.
There are more than 82,000 arboriculture businesses in the United States but the average number of employees per company is just two. Nearly one in five (18%) of those businesses have been in operation for more than 30 years – which speaks to the need for the work and the trust that businesses earn.
There are big businesses and small shops, all serving specific areas and many with long-standing reputations of service in the communities they work in. These are vital businesses and they need customized insurance that provides necessary coverages for the work.
What is happening right now in arboriculture?
To sum it up, there’s a lot going on. The construction market in the United States is projected to be a trillion-dollar industry in 2024 with steady growth projected in the years ahead, which means more opportunity for tree care businesses.
Technological advancements have made life a bit easier for tree care workers, with things like drone technology (for more detailed and expeditious site surveying and risk analysis) and electric-powered equipment (for increased energy efficiency) becoming more widely available and adopted.
This has led to more work and more revenue, but the underlying story is that many tree care businesses remain underinsured. Despite hazardous working conditions from being close to power lines and the potential for extreme weather, the fact is that many business owners simply don’t know what coverages they’re required to have – and those they should have.
The future of the tree care industry is promising – and here’s why
Experts are bullish on tree care, with the introduction of new technologies at the top of the list.
Technology bodes well for arborists and their businesses, allowing for greater efficiency and accuracy in the work; for example, drones are already making site surveying easier. Tech also extends to sustainability, with organic soils and fertilizers being used in multiple states to maintain surrounding ecosystems.
We’re looking at an industry that could produce up to $44 billion (USD) in revenue by 2028, so clearly, there’s a prosperous future not far ahead. As a broker, you will likely get asked by current and prospective clients about the insurance coverages they need to safely and properly do business – and we have answers to those questions.
The top five FAQs for arboriculture insurance
There are a few common questions we hear regarding arboriculture insurance, and the conversation usually begins with the types of coverages businesses need.
What insurance coverages do tree care companies need?
The most important insurance protection a tree car business should have is a business owner’s policy (BOP), which includes three different coverages: liability coverage, commercial property coverage and business interruption coverage.
Business liability coverage protects the company if accidents occur, resulting in either property damage or injuries to others. Commercial property insurance covers the business’ actual location along with any equipment owned or leased by the company. Business interruption insurance covers income lost due to circumstances that result in the company being unable to operate (fire, theft, other damages).
Other coverages that a tree care business may benefit from include:
- Umbrella coverage, which provides another layer of insurance in addition to the company’s liability policy.
- Inland marine coverage, which insures tools and equipment owned or leased by the business while they’re being transported to a work site.
- Equipment coverage, which will help to repair or replace tools and equipment that are damaged, stolen or lost.
How does arboriculture insurance protect against liability claims?
Accidents that happen on the job site – causing damage or injury – are generally covered by the business’ general liability policy. Commercial auto insurance, a common coverage for arboriculture businesses, protects against liability claims that occur when operating a company owned or leased vehicle.
A business liability policy also protects tree care companies against claims of copyright infringement and false claims in advertising.
What factors impact the cost of arboriculture insurance?
In general, the cost of business insurance for tree care companies can be impacted by the following:
- Total value of assets owned or leased by the business.
- Location of the business.
- Number of employees and contractors.
- Estimated or average annual revenue of the business.
- History of previous claims filed by or against the business.
Why is workers’ compensation coverage critical for tree care businesses?
In short, if the business has employees, it is required (in most states) to have workers’ compensation coverage. This policy covers wages lost, medical and health benefits and disability (short and long-term) if an employee is injured or becomes sick while on the job.
Because tree care workers will face hazardous conditions and work with heavy equipment on the job site, workers’ compensation coverage is essential. This coverage is also necessary even if the company has one employee.
How can clients make sure they have the right coverage?
The best way your clients can get proper coverage to protect the business, employees and other assets is to work with a broker who can write a TreePro policy.
TreePro is the most trusted insurance offering for tree care professionals, with more than 35 years of experience providing coverage for arborists and their employers. This industry-specific program offers a comprehensive solution that caters to tree service businesses of all sizes, ranging from owner-operators to the industry’s largest companies.
TreePro is trusted by brokers and tree care professionals to deliver specialized coverage
TreePro is better tree care insurance – by design. Clients get access to competitive rates, specialized coverages and a library of resources that addresses their specific needs and concerns.
Insurance is necessary but isn’t always top-of-mind for tree care business owners, but with TreePro as their partner, they will have everything they need to grow and run their business.
TreePro provides customized versions of every business insurance product, ensuring both cost-effective insurance coverage and state-of-the-art risk management solutions. “Industry expertise” isn’t just a throwaway phrase for TreePro; a dedicated team handles claims and other policy-related issues and has a deep understanding of each client’s business.
Interested in learning more? Contact a member of the TreePro team by submitting a request for information to submissions@nipgroup.com, or make a phone call to 866-780-8076.
