Regularly, tree service companies face different types of dangers. For instance, falling tree branches and damaging the client’s home, a power line can lead to sudden electric shock and more. If your company trims, removes or maintains trees, you may need to purchase tree service insurance. With the right type of coverage, you won’t have to worry about a major accident uprooting your company.
Tree Service Insurance is a small business insurance policy that has various coverage types to address different scenarios or problems. These problems include lawsuits, theft, or damage to your business; lost business income; and injuries and illnesses of employees.
Who Needs Tree Service Insurance?
If you do tree service tasks like trimming, planting, removing, or maintaining trees, then you need tree service insurance. Here are some tree service professionals that may need a policy.
- Tree trimmers
- Tree pruners
- Certified Arborists
- Landscape and hardscape professionals
- Pest control tree professionals
If you perform the above-listed tasks or work in this industry, then you need to follow this policy.
What Does the Tree Service Insurance Cover?
A good policy has various types of small business insurance that look at different scenes. This includes lawsuits, damage to or theft of your business property, and the cost of claims. You should do research on a business owner’s policy that includes three main types of coverage. Also referred to as BOP, it is usually cheaper than buying the coverage type separately.
Business Interruption Insurance
This covers the loss of income if you can carry on your business due to issues that are covered by your policy. A business interruption policy is also referred to as “business income insurance,” and it covers the cost of moving to another place due to covered problems like fire, etc.
Business Liability Insurance
Business liability insurance is a very important type of coverage for bodily injuries and property damages done to other people. It covers medical bills and legal costs if you are sued due to your business problems. This coverage covers other issues, including copyright infringement, claims of reputational harm, and advertising injury.
Commercial Property Insurance
Commercial property insurance helps to cover the location of your tree service business. This also covers if your equipment gets stolen or damaged by a problem that is covered by your insurance policy. Both owned and leased equipment, like tools, computers, business records, and furniture, is covered.
You might need additional small business insurance to help fill the coverage gap. Some other types of insurance include tools and equipment, equipment breakdown, errors and omissions, inland marine, workers’ compensation insurance, and hired and non-owned auto insurance.
What is Not Covered By Tree Service Insurance?
A tree services policy won’t cover every type of problem. Some of these exclusions include:
- Disability
- War
- Floods
- Earthquakes
- Infectious diseases
- Wrongful termination
- Intentional and fraudulent acts
So, keep in mind that your tree service insurance won’t cover the above-listed problems.
How Much Does it Cost?
Just so you know, the median price of general liability insurance for a tree business changes every year. However, the policy cost will depend on different facts. These factors include the type of coverage, size of your team, your business property, the amount of equipment you have, the types of services you provide, and your policy limits and deductibles.
Where Can I Purchase Tree Service Insurance?
90% of small business insurance companies sell this policy that you can use for your tree business. The best place you can start is with BOP, and then you can later add other important coverage types like workers’ compensation and auto insurance to your policy. Here are some of the companies that offer this service:
- The Hartford
- Liberty Mutual
- Nationwide
- Acuity
- Allianz
- Allstate
- American Family Insurance
- AmTrust Financial
- Auto-Owners Insurance
- Berkshire Hathaway
- State Farm
- Chubb
- Cincinnati Insurance
- Clear Blue Insurance Co.
- CNA
- Erie Insurance
- Farmers Insurance
- Frankenmuth Insurance
- The Hanover
- Tokio Marine
- Travelers
- Utica First Insurance
- Westfield Insurance
These above-listed small business insurers sell this policy and other additional coverage you can add for more coverage.
How To Purchase
To purchase this tree business insurance, just visit any of the above-listed insurance companies’ official websites. First of all, request a quote by providing adequate information about yourself. After that, you will receive a quote based on the details you provide. Make sure you request quotes from more than one insurer and compare their rates.
Choose the one with the best rate and proceed to purchase on the website or at their local branches. You can also choose to meet with an independent agent to help purchase the policy on your behalf. This agent will go through all the procedures for you.
Frequently Asked Questions
Is Tree Services Insurance Income Tax-Deductible?
The law is different for everyone, so it is advisable to speak to a tax professional for help with your business. However, for the most part, premiums paid for tree removal businesses are deductible when income taxes are filed. As they are necessary and ordinary business expenses.
How Much Tree Service Insurance Will I Need?
Keep in mind that the amount of coverage that you need will depend on different factors. These factors include your annual revenue and payroll, the size of your business, your zip code, and more.
Does Tree Service Insurance Differ by State?
Yes, it can. That is why you need to go through the quote process. The question will build up insurance coverage options based on the information provided as well as your state requirements.
Is Tree Service Insurance Required by the Law?
Due to the nature of your job, the law may require you to carry some coverage. For instance, if you have workers, the law may require you to have compensation insurance. You will not be required to have general liability insurance.