Here's something most tree service owners don't realize until it's too late: that commercial property insurance policy you bought to protect your business? It probably doesn't cover your equipment the moment it leaves your shop. When your $15,000 stump grinder gets stolen from a job site, or your climbing gear falls off the truck and gets destroyed on the highway, standard property insurance won't help you.
That's where inland marine insurance comes in. Despite its confusing name (no, you don't need to be near water), this coverage protects your tools and equipment wherever your business takes them—in your truck, at a customer's property, or temporarily stored at a job site overnight. For tree service businesses that haul chainsaws, chippers, and specialized climbing equipment to different locations every day, it's not optional. It's essential.
Why Tree Service Businesses Need Equipment Insurance
Tree care companies invest heavily in specialized equipment. According to industry data, the typical tree service business carries $50,000 to $250,000 worth of tools and machinery. We're talking about commercial-grade chainsaws, stump grinders, wood chippers, bucket trucks, climbing gear, rigging equipment, and safety gear. Lose a major piece of equipment, and you're not just out the replacement cost—you're also losing money on jobs you can't complete while you wait for a replacement.
The bigger problem? Equipment theft is surprisingly common. While your crew takes a lunch break, someone backs up a truck and loads up your chainsaws and climbing gear. It happens faster than you'd think. Tree service equipment is a prime target because it's portable, valuable, and easy to resell. Without the right coverage, replacing stolen tools means paying out of pocket and scrambling to keep your business running.
Inland Marine vs. Commercial Property Insurance: What's the Difference?
This is where things get confusing for a lot of business owners. Commercial property insurance covers your stuff—but only at your main business location. If your equipment gets stolen from your shop or damaged in a fire at your warehouse, commercial property has you covered. But the second that equipment leaves your premises, commercial property insurance stops protecting it.
Inland marine insurance picks up where commercial property leaves off. It covers tools and equipment while they're in transit, temporarily stored at job sites, or anywhere else your business operates. The name dates back to the 1800s when insurance companies expanded their "marine" policies to cover goods transported by train and truck instead of just ships. The name stuck, even though it has nothing to do with water.
For tree service businesses, inland marine insurance typically covers theft, damage, and loss for equipment like chainsaws, climbing harnesses, ropes, stump grinders, wood chippers, power tools, and even your truck-mounted equipment while you're using it on the job. If your chainsaw gets stolen from a job site, your chipper breaks down in transit, or your climbing gear gets damaged during a storm emergency, inland marine insurance handles the claim.
Scheduled vs. Blanket Coverage: How to Protect Your Equipment
When you buy inland marine insurance, you'll need to choose between two coverage approaches: scheduled or blanket. Most tree service businesses use a combination of both.
Scheduled coverage means listing your high-value equipment individually on your policy. You provide the make, model, serial number, and value for each piece—like your $25,000 stump grinder or your $12,000 wood chipper. Each item gets its own coverage limit. The advantage? You know exactly what's covered, and if something happens, there's no dispute about what you're entitled to. The downside? You need to update your policy every time you buy or sell a major piece of equipment.
Blanket coverage works differently. Instead of listing every item, you estimate the total value of your smaller tools and equipment as a group. You don't need to document every chainsaw, hand tool, climbing harness, or rope—you just carry a blanket limit that covers everything collectively. This is simpler to manage and automatically covers new tools you acquire, but you need to make sure your blanket limit accurately reflects what you actually own.
Here's the smart approach: schedule your big-ticket items individually and use blanket coverage for everything else. That way, your expensive stump grinder and chipper have dedicated protection, while your chainsaws, hand tools, and climbing gear are covered under your blanket limit. Just remember—most insurers require you to insure your equipment for at least 80-100% of its actual value. Underinsure, and you might not get fully reimbursed when you file a claim.
What Does Equipment Insurance Cost?
For tree service businesses in 2025-2026, inland marine insurance typically costs around 2-5% of your equipment's total value per year. If you're carrying $100,000 worth of equipment, expect to pay somewhere between $700 and $1,800 annually. The average policy runs about $800 per year for $100,000 in coverage with a $1,000 deductible—that breaks down to roughly $0.80 per $100 of covered equipment.
Your actual premium depends on several factors: the total value of your equipment, what kind of equipment you're insuring (hand tools are cheaper to insure than heavy machinery), where you operate (urban areas with higher theft rates cost more), your claims history, and your deductible amount. If you've got a clean record and implement good security practices—like locking equipment in trucks overnight and tracking serial numbers—you might qualify for lower rates.
What's Actually Covered (and What Isn't)
Inland marine insurance for tree service businesses typically covers theft (someone steals your chainsaw from a job site), damage during transit (your equipment falls off the truck or gets damaged in an accident), damage at job sites (a tree falls on your chipper during a storm), vandalism, fire, and sometimes even mysterious disappearance (your equipment vanishes and you can't explain how).
What's usually not covered? Normal wear and tear, mechanical breakdown from regular use, equipment you rent or lease (unless specifically added), and intentional damage. If your chainsaw finally gives out after years of heavy use, that's a business expense, not an insurance claim. Also, if you leave your equipment completely unsecured and unlocked in a high-crime area overnight, your insurer might deny a theft claim for negligence.
How to Get Started with Equipment Insurance
First, take inventory of everything you own. Make a spreadsheet with every piece of equipment, its purchase date, what you paid, and its current value. Take photos and record serial numbers. For your high-value items—anything worth more than $5,000—gather receipts and documentation. This prep work makes getting quotes faster and ensures you're not underinsured.
Next, talk to an insurance agent who specializes in contractors or tree service businesses. General insurance agents might not understand your specific needs. Ask about combining your inland marine coverage with your other business policies—many insurers offer package deals that include general liability, commercial auto, workers' comp, and equipment coverage together, often at a lower total cost.
Finally, review your coverage annually. As you buy new equipment or sell old gear, your policy needs to change. If your equipment inventory grows from $75,000 to $150,000 but your policy still covers only $75,000, you're taking a huge risk. Update your coverage as your business grows, and you'll sleep better knowing you're protected.
