If you run a tree service business, you already know the risks. One wrong cut sends a branch through a customer's window. A chipper malfunctions and damages thousands of dollars in equipment. A client trips over your rope line and breaks an ankle. These aren't hypothetical scenarios—they're Tuesday afternoons in the tree care industry.
Here's where a Business Owners Policy (BOP) comes in. Instead of juggling separate policies for general liability and property insurance, a BOP bundles them together at a discount. For many tree service operations, especially smaller companies, it's the most practical way to get essential coverage without breaking the bank. But—and this is important—a BOP isn't a complete insurance solution for tree service businesses. Let's break down when it makes sense and what you're actually getting.
What's Actually in a BOP for Tree Service Companies
A standard BOP combines two core coverages. First, general liability insurance protects you when your work causes bodily injury or property damage to others. If a falling limb damages a customer's roof or a homeowner trips over your equipment and gets hurt, this coverage handles the medical bills and legal defense costs. For tree service work, this is non-negotiable coverage—property owners expect you to carry it, and many won't hire you without proof of insurance.
Second, commercial property insurance covers your business assets. This includes your chippers, chainsaws, stump grinders, climbing gear, and other equipment. If your storage unit floods or someone steals your truck full of tools, property coverage reimburses you for the loss. Most BOPs also cover your business personal property at customer locations, which matters when you've got $15,000 worth of equipment spread across someone's backyard.
Beyond these basics, BOPs typically include business interruption insurance. If a covered loss—say, a fire destroys your equipment shed—forces you to shut down temporarily, this coverage replaces your lost income and helps pay ongoing expenses like loan payments and utilities. For seasonal businesses that need to maximize their productive months, this protection can be the difference between weathering a setback and going under.
When a BOP Makes Sense for Your Tree Service Business
BOPs work best for smaller tree service operations. Most insurers set revenue limits around $3-5 million annually, though this varies by carrier. If you're running a crew of 2-10 people doing residential tree trimming, removal, and basic storm cleanup, a BOP probably fits your needs. The standardized package means faster underwriting and lower premiums—typically 10-15% less than buying general liability and property insurance separately.
The convenience factor matters too. One policy means one renewal date, one point of contact for claims, and simpler paperwork when clients request certificates of insurance. You're not tracking separate deductibles or trying to remember which policy covers what. For business owners who'd rather focus on tree work than insurance administration, that simplicity has real value.
However, as your business grows, you'll likely outgrow a BOP. Larger operations doing commercial tree work, utility line clearance, or extensive storm response need higher liability limits and more specialized coverage than a standard BOP provides. If you're bidding on municipal contracts or working with commercial property managers, they often require coverage limits that exceed what BOPs offer.
What's Not Covered: The Gaps You Need to Fill
Here's where tree service owners get tripped up: a BOP is not comprehensive coverage. It leaves significant gaps that you'll need to address with separate policies.
Workers' compensation isn't included. If you have employees, most states legally require you to carry workers' comp. Given that tree work consistently ranks among the most dangerous occupations—with injury rates far above the national average—skipping this coverage isn't just illegal, it's financially reckless. A single serious injury could cost hundreds of thousands in medical bills and lost wages.
Commercial auto insurance requires a separate policy. Your BOP won't cover accidents involving your trucks, chippers being towed, or equipment being transported. Since tree service vehicles are on the road constantly—often carrying heavy loads and towing expensive equipment—proper commercial auto coverage is essential.
Professional liability (errors and omissions insurance) typically isn't part of a BOP either. If you provide arborist consultations, tree health assessments, or expert testimony, you need separate coverage for claims alleging professional negligence. A homeowner who says you misdiagnosed a tree disease or gave bad advice that led to property damage would file a professional liability claim, not a general liability one.
Many BOPs also exclude or limit coverage for certain high-risk tree service activities. Crane operations, bucket truck work, and utility line clearance often require endorsements or separate policies. Storm response work in other states might not be covered under your standard policy. Read your policy carefully and ask your agent specifically about coverage for the types of work you do.
Getting the Right BOP: What Insurers Look For
Not all tree service businesses qualify for a BOP, and those that do often face stricter underwriting than low-risk industries. Insurers know the tree care industry is dangerous, and they price accordingly. Expect to provide detailed information about your operations.
Safety protocols matter enormously. Do your crews have documented training in proper cutting techniques, climbing safety, and equipment operation? Are you following OSHA regulations and industry best practices from organizations like the Tree Care Industry Association? Insurers want to see evidence of regular safety meetings, equipment maintenance logs, and employee certifications. Companies with strong safety records get better rates and broader coverage.
Your claims history affects both eligibility and pricing. Multiple claims in recent years—especially for preventable incidents—can make you uninsurable under a BOP or drive your premiums sky-high. This is why investing in safety upfront pays dividends. The money you spend on proper training and equipment maintenance saves multiples in insurance costs over time.
The scope of work you perform influences coverage availability too. Residential tree trimming and removal are standard. Add in commercial work, crane operations, utility clearance, or stump grinding with chemicals, and you may need an upgraded policy or additional endorsements. Be completely honest about your services when applying—coverage denied during a claim because you failed to disclose certain work is worse than paying higher premiums upfront.
How to Get Started with BOP Coverage
Start by working with an insurance agent or broker who understands tree service businesses. Not all agents have experience with high-risk commercial operations, and the wrong agent will either decline to quote you or get you inadequate coverage. Look for agents who work with contractors and outdoor service businesses regularly.
Get quotes from multiple carriers. BOP pricing varies significantly between insurers, especially for tree service work. Some carriers specialize in high-risk industries and offer better rates than general market insurers. Others won't touch tree service businesses at all. Comparing three to five quotes helps ensure you're getting competitive pricing and appropriate coverage.
Before accepting a quote, verify the coverage limits meet your needs and any contractual requirements. Many commercial clients require minimum liability limits of $1 million per occurrence and $2 million aggregate. If your BOP offers less, you'll either need higher limits or you'll lose out on profitable work. Similarly, ensure your property coverage reflects the actual replacement cost of your equipment—underinsuring to save premium dollars backfires when you file a claim.
Finally, plan your complete insurance program beyond the BOP. Budget for workers' compensation, commercial auto, and any specialized coverage your operations require. Yes, insurance is expensive—tree service businesses often pay 5-10% of revenue in combined premiums—but it's the cost of staying in business. One uninsured catastrophe ends companies. The right insurance program, anchored by an appropriate BOP, keeps you working through the inevitable accidents and claims that come with the territory.
