Tree service companies are regularly exposed to several types of risks. Companies that trim, maintain, or remove trees are advised to get tree service insurance to protect themselves from unforeseen events such as lawsuits, bodily injuries to others, and other events that may financially affect the business. Tree service companies without proper coverage may encounter a major accident that may take out the company.
Tree service insurance is a type of small business insurance policy that offers coverage for risks connected with tree service companies. It covers issues like accidental injuries, lawsuits, property damage, damaged or stolen equipment, illness and injuries to employees, and lost business revenue. It protects tree service businesses against several levels of risks keeping the company moving.
What Tree Service Insurance Covers
A standard tree service insurance policy has several types of small business insurance policies that cover a wide range of issues. The best place to begin when purchasing this insurance policy is with business owners policy (BOP), which contains three important types of insurance coverage. These coverages include:
Commercial Property Insurance
Commercial property insurance covers the physical location of a tree service business or company. It covers stolen or damaged business equipment by issues like fire your policy covers. Commercial property insurance covers both owned and leased equipment like computers, tools, furniture, business records, and supplies.
Business Liability Insurance
Just as the name says, this insurance covers accidental property damage and injuries caused by your business to others. It pays the medical bills as well as legal costs if your business gets sued. It also covers other types of issues like copyright infringement, advertising injury, and claims of reputational harm.
Business Interruption Insurance
Business interruption insurance covers your lost income if your business is forced to shut down temporarily due to issues your policy covers. This insurance coverage is also referred to as business income insurance, and it covers the cost to temporarily move your business location due to issues like wind damage or fire.
What Tree Service Insurance Doesn’t Cover
Just like other types of insurance policies, tree service insurance excludes certain types of problems from its coverage options. This means it does not cover some issues for your tree service business. What it doesn’t cover includes:
- Earthquake damages.
- Infectious diseases.
- Intentional and fraudulent acts.
- Flood
- War
- Unjust termination.
- Disability
For some issues like flood, disability, and earthquakes, you can get separate insurance coverage as a standalone policy or as additional coverage to your tree service policy.
Who Should Get Tree Service Insurance?
For companies that carry out tree services such as maintaining, trimming, and removing trees, it is important to purchase this insurance. For instance, a falling tree branch may damage a client’s home, and the client decides to sue your company.
Tree service coverage will cover the damages made as well as the judgments to the lawsuit filed. However, the following are tree service professionals who should get this insurance coverage:
- Tree professionals specialized in pest control.
- Tree removal professionals.
- Licensed arborists.
- Tree trimmers and pruners.
- Landscape and hardscape professionals.
If your business falls under any of the following, you should purchase this insurance policy.
How Much Does It Cost?
For general liability insurance, the average cost for tree service insurance is $1,650 annually. This cost, however, varies depending on several factors insurance companies consider when determining cost. These factors include:
- Number of employees.
- Tree service business revenue.
- Preferred policy deductibles and limits.
- Types of services your business provides.
- Types of property and equipment your business owns.
- Preferred coverage type.
Using these factors, insurance companies determine how much you will pay for coverage. These factors are used to evaluate the amount of risk your business poses.
Where To Get Tree Service Insurance?
Most small business insurance companies sell several customizable business insurance types for tree service businesses. While the best place to begin is business owner insurance, these companies allow you to include other insurance coverage types like workers’ compensation insurance to your policy.
- Allstate
- Auto-Owners
- Chubb
- American Family
- Clear Blue Insurance Co
- Farmers
- Nationwide
- Erie
- State Farm
- Liberty Mutual
- The Hartford
- Westfield
- Travelers
- AmTrust Financial
Why Do Tree Service Companies Need Insurance?
Generally, tree service businesses encounter multiple risks on their job. Risks include injuries or property damage and stolen business tools and equipment. Without a tree service insurance policy, your business would have to pay for it out of pocket, and it may lead to financial setbacks for your business.
