Here's something that catches new tree service owners off guard: Florida treats your business differently than most other industries. Because tree work falls under construction in the eyes of state regulators, you're playing by stricter rules from day one. That guy with a chainsaw and a pickup truck claiming to be a tree expert? He might be uninsured and operating illegally—and you don't want to be him when something goes wrong.
Let's break down exactly what Florida requires, what you actually need to run a legitimate operation, and how to avoid the expensive mistakes that sink tree service businesses before they get started.
The Construction Classification Changes Everything
Most Florida businesses don't need workers' compensation insurance until they hit four employees. Tree services? You need it with employee number one. That's because Florida's Rule 69L-6.021 classifies tree removal and landscaping as construction-related work, and construction has its own set of rules.
This isn't just bureaucratic nitpicking. Tree work is genuinely dangerous—chainsaws, heights, heavy equipment, falling limbs. The state knows this, insurance companies know this, and your rates will reflect it. Workers' comp for tree service typically costs between $15 and $25 per $100 of payroll, with annual premiums ranging from $400 to $3,000 depending on your crew size and payroll.
If you're thinking about skipping workers' comp to save money, don't. Operating without coverage leads to steep fines, potential business closure, and personal liability if an employee gets hurt. Florida takes this seriously, and so should you.
General Liability: Your Real Safety Net
Here's what surprises people: general liability insurance isn't technically mandated by Florida law with a specific dollar amount. But try getting a commercial contract without it. You won't.
The industry standard is $1 million in general liability coverage. Some companies carry up to $2 million. You can technically get policies starting at $100,000, but that's not going to cut it if you're bidding on anything beyond basic residential trimming jobs. Property managers, HOAs, and commercial clients will request proof of insurance, and they're looking for that seven-figure coverage.
What does general liability actually cover? Property damage is the big one. A branch crashes through a client's roof, your equipment tears up their yard, or a falling tree damages a neighbor's fence—that's all on your GL policy. It also covers bodily injury to third parties, though it doesn't cover your employees (that's what workers' comp is for).
When you're getting quotes, ask for the certificate of insurance directly from the carrier with current dates. Shady operators have been known to show fake or expired insurance documents. Verify everything.
Licensing in Florida: Simpler Than You Think
Florida doesn't require a state-level tree service license. You need an occupational license (basically a business license), and that's about it from the state's perspective. This is a double-edged sword. On one hand, it's easier to get started. On the other hand, it means anyone can legally claim to be a tree service without proving competence.
That said, local rules vary. Miami-Dade and Hillsborough counties, for example, have additional business license and landscaper permit requirements. Check with your county and city to see what applies to you. Most jurisdictions will want to see proof of insurance before issuing permits.
While not required, getting ISA (International Society of Arboriculture) certification can set you apart. It requires three years of full-time tree care experience and passing a comprehensive exam. Many clients, especially commercial ones, prefer or require ISA-certified arborists. It's a professional credential that signals you're serious about the craft.
Owner Exemptions: Who Can Opt Out of Workers' Comp
If you're running your tree service as a corporation or LLC, you have some flexibility. Up to three corporate officers with at least 10% ownership can exempt themselves from workers' compensation coverage. This can save money if you're the owner-operator and don't need coverage for yourself.
However, if you're a sole proprietor, you're out of luck. Florida law considers sole proprietors in construction industries to be employees, which means you can't exempt yourself. You'll need workers' comp coverage even if you're the only person in the business.
To apply for an exemption, you'll need to complete an online tutorial about workers' comp coverage and compliance, then submit an application through the Florida Division of Workers' Compensation website. There's a $50 application fee. As of 2023, you no longer need to list specific scopes of business on your exemption certificate, which simplifies the process.
Other Coverage You'll Actually Need
General liability and workers' comp are just the foundation. Running a real tree service business means considering a few other policies:
Commercial auto insurance is mandatory if you're using vehicles for business purposes. Your personal auto policy won't cover a truck you're using to haul equipment and wood chips. Inland marine or equipment coverage protects your expensive machinery—chippers, stump grinders, chainsaws, climbing gear. If you're leasing or financing equipment, your lender will likely require this coverage anyway.
If you're providing tree health assessments or consulting services, professional liability insurance (errors and omissions) is worth considering. It protects you if a client claims your advice caused them financial harm.
Getting Started the Right Way
Start by deciding your business structure. If you're going solo, understand that you'll need workers' comp coverage even for yourself. If you're forming an LLC or corporation, factor in the option to exempt yourself as an officer.
Next, shop for insurance. Get quotes from multiple carriers that specialize in tree service coverage—they'll understand your risk profile better than a general business insurer. Expect to provide information about your payroll, services offered, equipment values, and safety procedures.
Once you have your insurance lined up, apply for your occupational license through your local county or city. Check if your area has any additional permits or requirements for tree service businesses. Keep copies of all your insurance certificates accessible—you'll be showing them to clients regularly.
Yes, insurance and licensing add upfront costs to starting your tree service business. But they're also what separate legitimate professionals from fly-by-night operators. When clients ask for your insurance certificates and you can produce them immediately, you're already ahead of half your competition. And when something inevitably goes wrong on a job—because tree work is inherently risky—you'll be protected instead of personally liable. That's worth every penny.
