Tree Service Insurance: Requirements, Coverage & Quotes From 8

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Tree Service Business Insurance

Tree service business insurance pertains to a broad range of tailored insurance products for arborists, tree cutters, tree surgeons, and more.

Small business insurance for tree service is very important. It can cover the cost of lawsuits and compensate clients. Furthermore, it can pay for the cost of workplace injuries and equipment repairs .

Liability insurance policy for tree service provides the first line of defense. Let’s discuss what this is in the next section.

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Tree Service Liability Insurance

Tree service liability insurance usually pertains to general liability insurance for tree service workers.

General liability insurance for tree service takes care of costs in case you caused property damage or bodily injuries to third parties.

So how much money can you get from general liability insurance for tree work? Usually, the policy provides a $1 million limit, which the policyholder can use to pay legal fees and settlement to the aggrieved client.

Workers Compensation Insurance for Tree Service

Tree service workers sometimes get injured while working. The most common injury, by the way, are cuts and scrapes. Cuts and scrapes can result in temporary impairment. In connection with this, latest data show that the average workers compensation for cuts and scrapes is $23,768.

Workers comp for tree service functions to cover the cost of employee compensation. This policy can cover the employees:

  • Medical bills

  • Rehabilitation

  • Medical equipment

Furthermore, in case you can’t go to work for an indefinite period of time, workers comp can also supplement lost income. Depending on the state, tree service workers compensation insurance can provide money equal to 66.67% or 80% of your average weekly payroll.

Tree Service Insurance Requirements

The United States doesn’t have laws that demand what kind of tree service business insurance should be purchased before one can work with clients.

Nonetheless, it should be noted that most clients demand that there must be a $1 million general liability insurance to cover them.

Another thing to note is that aside from general liability, some clients might also require a surety bond. Commonly, tree services need to get $100,000 in surety bond to satisfy the terms of a contract.

Furthermore, in case there are one or more employees, workers comp insurance is also required. Ask the local workers compensation office in your location to know when you should get workers comp.

Arborist Insurance

Arborist business insurance is a tailored coverage for arborists. It offers liability insurance, commercial property insurance, and commercial auto insurance.

Arborists have liability whenever they cause injuries or property damage. Because of this, their business insurance comes with arborist liability insurance. Usually, this is offered as a general liability insurance policy.

Arborist general liability insurance takes care of cuts, lacerations, contusions, concussions, and other kinds of bodily injuries to the client. In addition, it also covers costs if the client’s property got damaged.

Arborist insurance is very important. Without it, arborists might find themselves in debt or lose a significant amount of savings in their bank. Physical injury claims settlement starts at $10,000. However, if the injuries are severe, settlement can easily scale up to more than $1 million.

Property damage isn’t different. Those who file property damage claims require huge sums of settlement even for minor damages. Broken windows or roofings might require a settlement of $50,000.

Arborist Professional Indemnity Insurance

Clients have the right to sue arborists for unsatisfactory work, property damage or injuries resulting from negligence, and the failure to finish a project on time. And for this reason, carriers offer professional indemnity insurance for arborists as protection.

Arborist professional indemnity insurance will pay for the lawsuit and the amount of money the client wants as compensation for all economic and financial loss incurred. In practice, the most common scenarios where professional indemnity provides coverage are:

  • When arborists misdiagnosed the tree’s health

  • Aggravating a tree’s health instead of improving it

  • Failure to finish the project on the deadline the client imposed, as stated in the contract

  • Causing property damage or injuries by failing to follow or implement precautions the OSHA and other safety government agencies mandate

Professional indemnity lawsuits against arborists are costly as they involve numerous charges imposing different penalties (criminal, civil, etc.) The overall costs can reach up to more than $100,000 depending on the severity of the incident and its results. With that said, paying for such an amount can be very problematic without insurance ready and waiting.

Tree Removal Insurance Coverage

Tree removal insurance is a policy that attends to the needs of people in the tree service industry specializing in the transfer and removal of trees. Tree removal company insurance usually includes the following policies:

  • Professional liability insurance

  • Equipment breakdown coverage

  • General liability insurance

Tree removal general liability insurance starts with a $2 million policy limit and comes with products and completed operations as an additional option. Professional liability, on the other hand, has a $1 million limit. Equipment breakdown covers the cost of repair or replacement cost of the chainsaw and other equipment and has a policy limit of $1 million.

Having coverage is very important because, without a good tree removal insurance program, a tree removal company might easily lose profits and clients along the way.

A report analyzing 53 tree felling accidents from 2009 – 2014

  • The tree impacted another tree/object and fell in another direction, injuring someone as a result

  • The tree started falling into the intended direction. However, its top portion swayed, came back, and fell somewhere else

  • Hung up tree (this is a tree, which the operator already cut, but didn’t fall by reason of snagging with another tree/object)

Tree Trimming Insurance

Businesses in the tree service industry that provides trimming services might find tree trimming business insurance helpful. Tree trimming insurance coverage consists of:

  • General liability insurance

  • Professional indemnity insurance

  • Commercial property insurance

General liability insurance for tree trimming service takes care of property damage or personal injury lawsuits. The cost of lawsuits against tree trimmers is $66,000 or even higher depending on the severity of the damage. And so, having coverage is crucial because it provides $1 million basic coverage for attorney fees and other legal costs.

Tree lopping insurance also includes commercial property insurance that covers tree trimming equipment. Coverage applies when damage or theft happens. In other words, tree trimmer business insurance provides backup funds so that tree trimmers can continue their work even when misfortune comes.

In case the client filed a claim because the tree was trimmed wrongfully and got sick, professional liability policy in tree pruning insurance can help reimburse the client for their losses. If the matter is taken to court, then this will also cover legal fees.

Insurance for Tree Cutters

Tree cutter insurance is a tailored policy for those involved in logging. The policy offers general liability insurance having a $1 million policy limit, which can be added with products and completed operations coverage.

There’s also commercial property insurance for tree cutting included that provides reimbursements if helmets, hand saws, pole saws, chainsaws, and hatchets got damaged or lost because of:

  • Fire

  • Vandalism

  • Theft

The policyholder can also decide to add workers compensation insurance for tree cutters, which becomes very useful in case of amputations because it gives all the money needed for the operation, medicines, medical equipment, and rehabilitation.

Stump Grinding Insurance

Insurance for stump grinding includes policies such as general liability insurance, professional liability insurance, and equipment breakdown coverage. In stump grinding insurance, general liability offers a $1 million up to $2 million policy limit. Professional liability, on the other hand, starts with a $500,000 limit. Finally, equipment breakdown coverage offers a $1 million policy limit and only covers the stump grinder and other related accessories.

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