What Type of Insurance Does a Tree Service Business Need?

by Sara Melone; Updated September 26, 2017
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Tree trimming services can range from pruning errant tree branches to removing limbs from rooftops and power lines. A tree service company may also be called upon to remove dead trees or provide treatment for a tree that is showing signs of disease and decay. Whether the tree service business has employees or not, there is a certain amount of liability inherent in the work. The right insurance can help protect the business owner from liability issues.

Liability Insurance

Liability insurance is one of the most important and all-encompassing insurance options for any business owner. Liability insurance covers property damage and injury which someone may suffer as a result of your actions. If your company provides tree trimming or tree removal services, there is a high possibility you could cause damage to a building, car or other property due to a falling branch or tree trunk. Liability insurance is key in a tree service business where your activities could result in a lawsuit for potential damages. In addition, many states will not allow you to operate a tree service business without the proper liability insurance.

Equipment Insurance

If you are operating a tree service business, chances are you will have a special vehicle along with tree trimming equipment and tools. Any business that owns or operates a vehicle for work should invest in commercial auto insurance. This type of insurance can protect you from a lawsuit or medical liability if your company vehicle is involved in an accident. Along with commercial automotive insurance, the right equipment insurance can help ensure that your business will be able to continue operations even if you need to repair or replace any of your equipment.

Worker's Compensation

Most businesses understand the importance of obtaining worker's compensation insurance. If a worker becomes injured on the job, worker's compensation insurance provides funds to pay for the worker's medical expenses and salary while he is unable to work. If you have at least one employee, you should check the laws in your state to verify whether or not you are required to maintain worker's compensation insurance.

EPLI

ZeroMillion.com recommends a tree trimming business invest in Employment Practices Liability Insurance (EPLI). This coverage can help protect a business and the business owner from litigation resulting from improper workplace behavior, including, but not limited to, sexual harassment, discrimination or wrongful termination.

About the Author

Sara Melone is a mother of three and a graduate of UNH. With prior careers in insurance and finance, photography, as well as certifications in fitness and nutrition, Melone draws directly from past experience and varying interests. She contributes with equal passion to birth journals, investment blogs, and self-help websites.

Photo Credits

  • Green tree with red tree image by Lee Mann from Fotolia.com