TREE SERVICE INSURANCE FAQS
Tree service insurance can get complicated. From Workers' Compensation and commercial auto to expensive equipment and liability coverage, Tree Trimmers Insurance Agency helps tree service companies and arborists understand the insurance options available for their businesses.
What insurance does a tree service company need?
The right insurance depends on your operation. Tree service companies may need General Liability, Workers' Compensation, Commercial Auto, Equipment/Inland Marine, Commercial Property, Commercial Umbrella and Employment Practices Liability Insurance.
The number of employees, vehicles, equipment, services performed and states where you operate can all affect your insurance needs.
Does a tree service need General Liability Insurance?
General Liability Insurance can be an important part of a tree service insurance program. It may help protect your business against certain covered claims involving third-party bodily injury and property damage.
Because tree companies work around homes, vehicles, buildings and other property, liability exposures can be significant.
Does General Liability cover a tree falling on a customer's house?
It depends on the circumstances of the loss and the terms, conditions and exclusions of the policy.
If your tree service operation causes covered property damage to a customer's home, General Liability Insurance may respond. Every claim is different, so coverage should never be assumed without reviewing the actual policy and circumstances.
Do tree service companies need Workers' Compensation Insurance?
Workers' Compensation requirements vary by state and by the structure of the business.
Tree companies with employees should understand the requirements in every state where their crews perform work. Workers' Compensation may provide eligible medical, wage and other benefits following a covered work-related injury or illness.
Are tree climbers and groundspeople classified the same for Workers' Comp?
Not necessarily.
Workers' Compensation classifications are based on factors including the work employees actually perform. Climbers, groundspeople, drivers, equipment operators and office employees may have different duties and exposures.
Accurate classifications and payroll information are important when reviewing Workers' Compensation coverage.
Does my tree service need Commercial Auto Insurance?
If your company owns or uses vehicles for business, Commercial Auto Insurance may be necessary.
Tree service companies frequently operate pickup trucks, dump trucks, bucket trucks, chip trucks and other specialized commercial vehicles.
Personal auto insurance generally isn't designed to cover vehicles primarily used for business operations.
Is a bucket truck covered by Commercial Auto Insurance?
A bucket truck may require Commercial Auto Insurance, but the truck and its permanently attached equipment can create additional insurance considerations.
Make sure your insurance professional understands the complete vehicle and equipment configuration rather than simply the year, make and model.
Is my wood chipper covered by my truck insurance?
Don't assume it is.
Commercial Auto Insurance and equipment insurance serve different purposes. A chipper being towed behind an insured truck may require separate equipment, inland marine or other appropriate coverage.
What happens when I buy new tree service equipment?
Contact your insurance professional.
When you purchase a chipper, stump grinder, skid steer, loader or other significant piece of equipment, review whether it needs to be added to your insurance.
Keep records of the purchase price, serial number and other identifying information.
How do I insure a stump grinder, chipper or skid steer?
Mobile tree service equipment may be insured through equipment coverage, often provided through an Inland Marine or Contractors Equipment policy.
Coverage depends on the equipment, ownership, value, use and policy selected.
What happens when I buy new tree service equipment?
Contact your insurance professional.
When you purchase a chipper, stump grinder, skid steer, loader or other significant piece of equipment, review whether it needs to be added to your insurance.
Keep records of the purchase price, serial number and other identifying information.
What is Commercial Umbrella Insurance?
Commercial Umbrella Insurance can provide additional liability limits above certain underlying insurance policies.
For example, if a covered liability claim exceeds the applicable limit of an underlying policy, an umbrella policy may provide additional coverage, subject to its own terms, conditions and limits.
How much liability insurance should a tree service carry?
There isn't one limit that's right for every tree company.
Consider the size of your operation, number of employees and vehicles, types of jobs performed, contracts, customer requirements and overall liability exposure.
Larger tree companies or companies performing higher-value commercial work may have different needs than a small operation.
What is Employment Practices Liability Insurance?
Employment Practices Liability Insurance, or EPLI, may provide protection against certain covered employment-related allegations.
These can include claims involving wrongful termination, discrimination, harassment, retaliation and other employment practices.
As a tree service adds employees and supervisors, EPLI may become an increasingly important part of its insurance program.
Are subcontractors covered by my tree service insurance?
Don't automatically assume they are.
How subcontractors are treated can depend on the policy, state law, contractual relationship and work being performed.
Tree service owners should discuss subcontractor relationships with their insurance professional and understand what certificates of insurance and other documentation should be collected.
Does tree service insurance cover storm cleanup?
It depends on your policy and operations.
Storm work can create additional exposures involving hazardous trees, damaged structures, longer working hours, additional employees, increased driving and work outside your normal service territory.
If storm cleanup is part of your business—or you travel for storm work—make sure your insurance professional knows.
Can my tree service work in another state?
Possibly, but don't assume your existing insurance automatically satisfies every requirement in another state.
Workers' Compensation, licensing, registration and other requirements can vary by state.
Before sending a crew across state lines, review the requirements where the work will actually be performed.
Why is tree service insurance different from landscaping insurance?
Tree service companies can have exposures that differ significantly from traditional landscaping businesses.
Tree companies may work at significant heights, remove large or hazardous trees, operate chainsaws and chippers, use bucket trucks and cranes, and perform work around valuable structures.
Your insurance should accurately reflect the work your company actually performs.
When should I review my tree service insurance?
At least annually is a good starting point, but don't automatically wait until renewal.
Review your insurance when you:
• Add employees or another crew
• Purchase vehicles
• Buy expensive equipment
• Expand into another state
• Add new services
• Begin taking larger jobs
• Move or purchase a business location
• Sign contracts requiring different insurance limits
• Experience significant changes in payroll or revenue
Your insurance should evolve as your tree service company grows.
Can Tree Trimmers Insurance Agency review my existing insurance?
Yes.
You don't have to be starting from scratch.
Send us your current policies and information about your operation. We'll learn more about your employees, vehicles, equipment and services and help you take a closer look at your current insurance program.