Tree work is one of the riskiest trades in the country. Insurers know it, cities know it and homeowners know it. That is why insurance is both a big cost and one of your best sales tools. Here is what you need, what it costs and how to use it to win jobs.
The policies a tree service needs
General liability. Covers damage to the customer's property and injuries to other people. A limb through a roof, a crushed fence, a car under a falling trunk. Most homeowners, property managers and HOAs expect at least $1 million per occurrence; commercial clients often ask for $2 million or more. For a small tree company, expect several thousand dollars a year, often $3,000 to $8,000, depending on your state, revenue and claims history.
Workers' compensation. Covers your crew when they get hurt, and in tree work, people get hurt. Rates for tree trimming are among the highest of any class, often a large percentage of payroll. Most states require it once you have employees. Do not cut corners by calling workers contractors; it rarely holds up after an injury.
Commercial auto. Your personal auto policy will not cover a dump truck pulling a chipper.
Inland marine (equipment). Covers saws, chippers, grinders and trailers against theft and damage. A stolen chipper can end a season.
Umbrella. Extra liability on top of the others, useful once you take bigger jobs.
What makes insurance cheaper
- A clean claims history
- Written safety rules and training (ANSI Z133)
- ISA certified arborists on staff
- Not doing crane work or line clearance until you are ready
- Working with an agent who knows tree companies
Shop every year. Prices for tree service vary widely between carriers.
Licenses
Tree licensing is a patchwork:
- Some states require a license or registration for tree service or arborist work
- Many cities and counties require a local business license and sometimes a tree trimmer license
- Removal permits are common in Florida and other states for protected species or trees above a certain size
- Pesticide application for tree treatments usually needs a state applicator license
Call your state licensing board and your city before your first job. Write down your license numbers; you will use them everywhere.
Show your proof of insurance everywhere
Here is the part most tree companies miss. Homeowners are about to let someone drop a tree next to their house. They have heard the stories of uninsured crews. When they compare three companies, the one that shows insurance and a license number up front wins the call.
Put it:
- On every page of your website, in the header or footer: "Licensed and insured. License #12345. $2M general liability"
- On every estimate and invoice
- In your Google Business Profile description
- On your truck and yard signs
- In your answering service script, so callers hear it
Offer to send a certificate of insurance (COI) on request, straight from your agent. Commercial clients will ask for it every time. See tree service website design for how a site shows it on every page.
Subcontractors and day laborers
Many tree companies bring in extra climbers or ground workers when they are busy. Be careful. If a subcontractor gets hurt on your job and has no insurance of his own, the claim can land on your policy. Ask every sub for a certificate of insurance before he works, keep a copy, and make sure your own policy covers the work. Your agent can tell you exactly what your carrier expects. Paying cash to a helper with no coverage is the kind of shortcut that ends tree companies.
After a storm
After a big storm, out of town crews show up, and local news warns homeowners to check licenses and insurance. That is your moment. A site and a truck that show your local address, license and insurance clearly will win calls over the crew knocking on doors. Read our hurricane season guide.
Bottom line
Insurance is one of your biggest costs, so make it work for you. Buy the right policies, keep your safety record clean and put the proof where every customer sees it. It is the cheapest marketing you will do.
Frequently asked questions
How much is insurance for a tree service?
General liability for a small tree company often costs $3,000 to $8,000 a year. Workers comp, commercial auto and equipment coverage add much more, depending on payroll and state.
Should I show my insurance on my website?
Yes. Homeowners look for proof of insurance before hiring a tree company. Showing your license number and coverage on every page wins calls.