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Posted 03/09/2020 in Tree Service

How much does it cost to insure a tree service?

How much does it cost to insure a tree service?

The Average Cost of Tree Service Insurance

You must have searched how much it costs to insure a tree service? Did you do a Google search, if so we have the answers? Are you a new tree service company just starting out and want these answers? One thing is for certain, tree care companies do highly dangerous work maintaining various trees, in and out of dangerous situations on a daily basis. This type of business 1000% needs to be protected and cover not just themselves but their employees, equipment, vehicles, etc. From being high up in trees to working with chainsaws risks are at every turn. They prune large branches, cut trees back from power lines and even remove large trees that might be dead or damaged. You need adequate tree service insurance that covers many different aspects of your business. We’ll go over what most professional tree service companies have below. 

How much is General Liability Insurance for a tree service?

General liability insurance is needed if you run a professional tree service company. This kind of insurance will insure the company if a mistake is made or something is damaged, this type of insurance will cover it. General liability insurance will also cover injuries to workers and other bystanders that could get hurt by the company as well.  Most tree service companies will insure themselves for between $500,000 to $2 million dollars seems to be normal. Depending on the size of the company and type of work you do, some can have up to $10 million in coverage.. For that amount of coverage, the average costs nationwide are between $3,000 and $6,000 a year but could be up to $10,000 per year.

How much does Accident Insurance cost a tree service?

Accident insurance is a more specific type of insurance, different than general liability. It protects your personal property so this will cover any property damage done to your home or vehicle caused by the tree service company. This type of insurance usually will have coverage of at least $500,000 to $1 million dollars. This is most cases is enough to cover the cost of any minor or major home repairs if something were to happen. This insurance is additional coverage which is safe when and if general liability didn't cover everything. The average cost to tree service companies for accident insurance which this much coverage is ranging from $3,000 and $6,000 per year.

How much does Commercial Auto Insurance cost a tree service?

If you run a professional tree service company and have multiple crews going every day, that means you provide transportation for the crews, bucket trucks, chipper trucks, any vehicle that your company has on the road should be covered under commercial auto insurance. The tree care company needs to have its commercial vehicle insured so you don’t have to come out of pocket if a branch falls on one of their trucks while they're working or on the road involved in an accident. The amount of commercial auto insurance most tree service companies have is between $50,000 to $200,000 which tends to be sufficient to cover any damages done by company vehicles to property or others on the road. The average cost of commercial auto insurance is between $2,000 and $5,000 per year. 

How much does Workers Compensation Insurance cost a tree service?

Even if a tree service company has general liability insurance if the company doesn’t have worker’s compensation, as the owner of a tree service company you could be sued by one of your workers if they are insured or hurt while working. Homeowners should check to make sure companies have worker's compensation because if a tree worker is injured on a homeowner's property the homeowner could have to pay for a worker hurt on their property. Good tree service companies will keep worker's compensation insurance of up to at least $1 million for worker’s compensation. The average cost for workers compensation insurance and in this amount of coverage is about $5,000 to $7,000 per year.

How much is Homeowners Insurance?

This type of insurance is not held by the tree service company, homeowners are responsible for their own home. As a tree service company, it wouldn't hurt to ask the homeowner if their homeowner's insurance is up to date. In the event of tree removal, if you feel there is a risk a tree might fall on their home demolishing it, it's always safe when the homeowner has enough coverage to cover the cost of their home if a disaster were to happen. Be sure there is a clause for accidents from tree removal that would cover the cost of your home. The average cost of homeowner's insurance across the nationwide is between $700 and $1200 per year.

Will Homeowners Insurance pay for tree removal?

Tree services get the question often, will my homeowner's insurance pay for tree removal? The answer is It depends on the conditions. The majority of the time home insurance will not cover the cost of removing a tree that has not fallen. Homeowners are responsible for the maintenance of their home and property, so a standing sturdy tree will not be covered by homeowners insurance, tree trimming and maintenance is on the homeowners.  Even if a tree is dying or dead its still the homeowner's responsibility to service the tree. A great question to ask as a tree service company if this question comes up is, “ Is your tree still standing?”

Now if a tree fell due to a storm, high winds, and damaged the house, home insurance will generally cover it and would pay for repairs to fix the damage caused by the tree in addition to the cost to remove the tree from the property. What if the tree fell in the backyard without damaging any structures? Then, as a homeowner, you would have to come out of pocket for that. A good rule of thumb is the tree falling would have to cause damage to your home if you have a shed covered under home insurance it could cover your shed or exterior garage as well. Home insurance generally does not cover the removal of the tree unless it falls on a fence, garage or home and causes damage.

In some cases, home insurance will pay for removing a tree if it falls in or blocks your driveway. It’s recommended to give your homeowner's insurance policy a good lookover now if you are a homeowner to check your coverage or call your insurance agent for details. Most homeowner's insurance coverage will cover tree removal up to $1,000 per storm, which still can lead to out of pocket costs when it comes to removing a tree that has fallen due to a storm. 

Simply put, using a licensed, bonded and insured tree service provider is very important that it is the law in most states. It makes sense to have these extra measures of protection when it comes to something as potentially dangerous as tree trimming, tree removal, and other tree services. As a tree service company you should take pride in being licensed, bonded, and insured, brag about that on your website on your marketing materials, let people know you are running a professional company as often as possible. 

What “Licensed, Bonded and Insured” Means for Tree Service Companies

Some states require professionals that work in or outside of people's homes to obtain and keep a current license before they can perform certain services. Tree services are not exempt from this, earning a license to provide tree services in your state is evidence that the business has met minimum service requirements. Check your state regulations!

Being bonded as a tree service company means that you have a surety bond that protects you and the customer, in case you need to file a claim against the company. If your claim is decided upon to be valid and there is a judgment awarded but the company is unable to pay then the money would come from the surety bond as a result. 

Tree service companies that are insured protect themselves and their customers against financial damages in the event of an incident, accident, or property damage that arises during the time they are in business. It’s becoming a known fact that there is a bunch of pop up tree services that are underbidding and cheating the industry, legit tree service companies to compete on pricing when non-legit companies that don't have insurance provide cheap service. It puts homeowners at risk, without this type of insurance, an accident occurring on a homeowner's property could place potential liability on them. As a homeowner, it's vital to use a tree service that maintains worker's compensation insurance, so you are not held responsible if one of the workers gets hurt on the job while working on your property.


The Potential for Accidents and Damage For Tree Service Companies

This is why as a tree service company it's so important to be a licensed, bonded and insured tree service provider. It would not be so essential if the service itself weren’t so dangerous. Let’s face it, it can be very dangerous every single day working with heavy equipment, bucket trucks, climbing equipment, chainsaws, at the same time being so high up in trees. Certified Arborists are trained in their field on equipment, safety precautions, etc. so they know and continue education on these things, but accidents can and do happen. Being licensed, bonded and insured helps protect you the business owner and protects the homeowners as they get tree service. 


Is Your Tree Service Licensed, Bonded and Insured?

You came here asking the question, how much does it cost to insure a tree service? The answer is it could get expensive and costly to run a professional tree service company. When you add everything up depending on the size of your company it could be $5000-$20,000 per year just to cover your company's different insurance policies. As a homeowner, we strongly recommend verifying that the company you choose to hire is a licensed, bonded and insured. Arborists Near Me makes it easy, on each tree service companies profile you can see if they are licensed and insured. As a precaution, ask! Then you can take it a step further to see proof. In particular, it is important to note effective dates to make sure licensing, bonding and insurance have not lapsed some owners are busy and might not know their coverage expired a week ago. At Arborists Near Me, we help hundreds of homeowners connect with credible tree service companies, people report saving up to $500 on tree care due to getting multiple quotes. If you are a company and need more customers register, create a listing at www.arboristsnearme.com/join or if you are a homeowner and need service feel free to search our site and call a local company directly, see their profile, read reviews, and make a decision on who is best for you. 

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