Scaling tall trees with buzzing chainsaws and clipping towering branches is all in a day’s work for arborists.
But when your living is made in such conditions, danger is never far. Accidents in arboriculture are inevitable and frequent.
These accidents can not only injure employees and halt your operations, you could also lose your company and personal assets in lawsuits.
That is why your insurance designed for tree service companies is a requirement.
Tree service-specific general liability insurance shields tree trimming services from the worst-case scenarios — a third party sues you for bodily injury or you cause property damage during your operations.
When a mishap causes property damage, policies will pay. If a clipping lands you in court, insurance will defend you. And if errors leave your clients suing for compensation, your business will stay afloat.
Today’s heightened dangers demand even broader coverage. As climate change fuels fierce weather, once sturdy oaks and elms can transform into liability traps. And with the proliferation of solar panels blanketing homes, a single fallen branch can spark devastating damage claims.
Yet, even as the risks have risen, many tree tenders remain under insured.
A 2022 survey found over half of small contractors carried paltry policies covering just $500,000 in damages or less — barely enough for even a modest mishap. But comprehensive protection need not break the bank.
Let’s look at why general liability coverage for tree care companies is so important and what it typically covers for a tree service.
Why You Need General Liability Insurance for Your Tree Service Business
Say you’re pruning a large oak tree at a client’s home. A falling branch accidentally breaks their fence and garden gnome.
Or your ropes snap a power line while removing a tree, causing an outage in the neighborhood.
Even with safety precautions, scenarios like these can come up. General liability insurance for tree care companies helps cover the costs to repair or replace property that gets damaged.
Or even worse – what if a climber gets injured on a job site and decides to take legal action? General liability for tree care companies protects you in cases of alleged negligence. The costs of a lawsuit could otherwise put you out of business.
With insurance, your rates may still increase after a claim, but the financial stress will be reduced.
What the Insurance Covers
A standard tree care company-specific general liability policy includes a few key protections:
- Bodily injury – Covers medical bills if a third party is injured on your job site or by your activities. This protects you in the event of a lawsuit.
- Property damage – Covers repairs or replacement if you damage a client’s property during tree service work.
- Personal injury – Protects against libel, slander, wrongful eviction, and other personal injury claims.
- Advertising injury – Covers claims of copyright infringement, misappropriation of likeness, or other advertising-related injuries
Some policies may also include damage from pollution, products, and completed work as added coverage options
Errors and Omissions: An Added Layer of Protection
On top of tree care company-specific general liability, having errors and omissions (E&O) coverage is wise for service businesses like tree care.
E&O protects against financial loss from any errors you make.
E.g., say you improperly diagnose a tree’s disease and recommend the wrong treatment, which leads to the tree dying. The client suffers expensive losses and sues for your mistake. E&O insurance will protect you in this scenario when general liability for your tree care company may not.
Factors That Determine Insurance Cost
Many factors can affect how much your tree care company-specific general liability insurance policy will cost your tree-trimming business.
For instance, where you live makes a difference because some states, for whatever reason, have a higher rate of tree-trimming accidents.
Other factors like your years in business, crew size, claims history, and annual revenue impact rates.
Your tree company’s prior claims history also factors in, as do other considerations that help an insurance company determine the level of risk in insuring your tree service business.
Tree Care General Liability Insurance FAQ’s
Won’t my client’s homeowner’s insurance policy cover some claims, for instance, damages to their home, even if my tree service business is responsible?
The short answer is no.
Your client’s homeowner’s policy will cover damage from fire, theft, or a storm. It will also protect their interests, not yours.
That’s why your tree service business needs protection against claims made by third parties because of the work you or your employees performed.
What’s beneficial to you as an arborist or business owner is that the right insurance company can tailor and customize coverage to your needs while helping you obtain an affordable policy that offers protection for your business.
What type of coverage limit should I get for my tree care business?
Whatever you can afford.
A policy limit with a minimum of $1,000,000 in coverage limits is usually recommended. A higher limit on your tree care general liability insurance policy offers you more comprehensive coverage in the various areas of your policy, meaning your business is more protected against larger claims and settlements.
State laws vary in requirements for general liability insurance for tree care businesses. But, there are a couple of things to remember.
- One lawsuit or liability claim against your company can significantly impact your business’s operations if you don’t have insurance. All of the sweat equity and money you’ve invested in your tree care business can be erased if a court decides against you and you don’t have adequate insurance.
- Secondly, many clients will only hire licensed and insured tree-trimming companies.
Insurance offers an added layer of trust for your business, and others view insured companies as more reputable than businesses that aren’t insured.
Does my tree company need other types of small business insurance besides tree care company-specific general liability coverage?
Most likely, yes.
You’ll likely be legally required to purchase workers’ compensation coverage because of your state.
You may also need professional liability coverage, commercial vehicle insurance, commercial property insurance, and others, depending on the scope of your business.
The best course of action is for you to consult with a specialized insurance agent to identify what types of insurance your tree service business requires.
In many cases, an insurance company can bundle various business policies and lower your premiums.
An insurance company like ours, specializing in tree service insurance is your best bet in finding the coverage your business needs against all sorts of claims.
TreePro: Specialized Protection for the Journey Ahead
Your tree service business does dangerous work day in and day out and faces significant risks.
The simple truth is that your livelihood can be significantly impacted by property damage, personal injury, or libel claims. You need sufficient general liability insurance coverage for tree care companies to help manage your risks.
We intimately understand this trade, limb by limb. Our program is admitted and written in all states with minimum premiums starting at $10,000. For over 30 years, NIP Group’s TreePro program has been the specialized
general liability solution made for the distinctive exposures tree professionals face, including:
- Tree pruning and removal
- Utility line clearance
- Right-of-way clearing and maintenance
- Vegetation management
- Tree spraying
- Plant health care
- Landscape gardening
- Irrigation installation
- Snow and ice removal
Our experts become your guides, helping navigate risks from the first quote to the final resolution. Contact us today.
