Tree companies bear a great deal of liability because tree maintenance is a high-risk profession. A falling tree branch could cause injuries or damage power lines, which would result in legal action. To properly safeguard yourself and your crew, you must obtain tree service insurance. This coverage type relieves small businesses of the financial and legal burden associated with theft, accidents, and property damage.
Tree service insurance is a small business insurance policy designed to cover industry-specific risks. Problems like lawsuits, unintentional injuries and property damage, employee illnesses and injuries, stolen or damaged equipment, and lost business income are all covered by a good tree service policy.
Coverage Types for Tree Service Insurance
Many small business insurance options that cover a variety of issues are included in a good tree service insurance policy. This covers the expense of filing a lawsuit, dealing with theft or damage to your company’s property (including your tools and equipment), and handling claims.
A business owners policy (BOP), which combines three crucial categories of coverage, may be the best place to start. Purchasing a BOP is more affordable than purchasing individual coverage types.
A BOP consists of:
Business liability insurance
This basic form of insurance covers unintentional property damage and third-party injuries. For instance, general liability insurance covers both your legal expenses when you are sued and the pedestrian’s medical expenses if a branch strikes them while you are pruning a tree. It also covers other kinds of issues like copyright infringement, reputational harm claims, and advertising injury.
Commercial property insurance
Commercial property insurance includes coverage for your company’s actual location. Additionally, it may provide coverage for business equipment that is lost or destroyed due to an event covered by your policy, like a fire. This includes furniture, computers, tools, supplies, and business records in addition to owned and leased equipment.
Business interruption insurance
Business interruption insurance covers lost income resulting from covered issues like theft of tools and equipment. This allows you to temporarily operate your tree service business. It is also referred to as business income insurance that pays for the expense of relocating your business temporarily due to events like wind and fire damage.
How Much Does Tree Service Insurance Cost
The cost of tree service insurance is influenced by factors like the number of employees, claims history, and coverage requirements. The amount you pay also depends on how much risk you take.
The E&S market offers general liability coverage to tree service companies, resulting in higher average tree coverage costs than typical market plans. Because these carriers support costly claims that regular insurers cannot handle E&S insurance has higher premiums.
Insurance costs for other contractor occupations, such as landscaping, are typically lower than those for tree service. Although they both involve plants, the duties and risks associated with these jobs are different. The cost of insurance for tree trimming includes risky operations like cutting off large branches and downed trees. Getting a quote is the best way to learn how much your insurance will cost.
What Does Tree Service Insurance Not Cover
Certain kinds of issues are not covered by a tree service insurance policy. Typical exclusions consist of:
- Floods (a separate flood insurance policy is required for this).
- Earthquakes (a separate insurance policy is required for this).
- Conflict.
- Illnesses caused by infections.
- Unlawful dismissal (employment practices liability coverage would be required).
- Deliberate and dishonest behavior.
- Disability (workers’ compensation covers this).
Why Do I Need Tree Service Insurance
You perform a safety check each time you start up your chainsaw or move large branches. Similarly, whether you’re pruning branches or just planting young saplings, you need to use Tree Service Insurance to safeguard your company against the risks associated with operating your tree service.
Due to the strenuous physical work and falling debris involved in tree services, there is a risk that you could hurt a client or damage their property, in which case you would be liable for the costs. Many clients require a valid Certificate of Insurance and an active Tree Services Insurance policy for their meetings.
Where Can You Get Tree Service Insurance
The majority of small business insurers offer standard business insurance plans that you can tailor to your tree service company’s needs. A BOP is a smart place to start, and you can expand your policy by adding other crucial coverage types like workers’ compensation and commercial auto insurance.
Tree service insurance is provided by the following small business insurance providers:
- American Family Insurance.
- Allstate.
- Acuity.
- Allianz.
- Auto Owners Insurance.
- AmTrust Financial
- Cincinnati Insurance.
- Berkshire Hathaway.
- Chubb.
- CNA.
- Clear Blue Insurance Co.
- The Erie Insurance Company.
- Farmers.
- Frankenmuth Insurance.
- The Hanover.
- Nationwide.
- Hartford.
- Liberty Mutual.
- The State Farm.
- Tokio Marine.
- Tour Operators.
- Utica First Insurance.
- Westfield Insurance.