If you're running a tree service business, you already know this is one of the most dangerous jobs in America. With a fatality rate of 110 per 100,000 workers, tree care doesn't just need insurance—it demands comprehensive coverage that protects your business, your crew, and your financial future. But here's what most tree service owners don't realize: having insurance and having the right insurance are two completely different things.
This checklist walks you through exactly what coverage you need, what's optional but smart, when to add each type, and how to review your policies annually to make sure you're never caught underinsured when something goes wrong.
Essential Coverage: The Non-Negotiables
These aren't suggestions. If you're operating without these three coverage types, you're one accident away from losing everything you've built.
General Liability Insurance
General liability creates the foundation of your tree service coverage. This policy protects you when a falling branch damages a client's roof, when a crew member accidentally backs into a fence, or when someone trips over your equipment and breaks an ankle. Most small operations pay between $500-$1,500 annually, while larger companies with more exposure can expect $2,000-$10,000 per year.
Here's the critical part: your policy must specifically state it covers tree work. Generic liability policies often exclude tree service operations entirely, which means any claim from your actual business would be denied. Get this in writing. Standard coverage limits are $1 million per occurrence and $2 million aggregate, but if you're bidding on commercial work, you'll need higher limits—often $2-5 million—to even be considered.
Workers' Compensation Insurance
If you have employees, workers' comp isn't optional—it's the law in 49 states. Texas is the only exception, but even there, you'll need coverage if you're working on government contracts. This policy covers medical expenses and lost wages when your crew gets injured on the job, and given the nature of tree work, injuries aren't a matter of if but when.
Tree care companies typically pay $15-25 per $100 of payroll for workers' comp. That means if you're running a mid-sized operation with $500,000 in annual payroll, you're looking at $75,000-$125,000 yearly. Yes, it's expensive. But consider the alternative: without this coverage, a single serious injury could bankrupt your business through medical bills and lawsuits.
Commercial Auto Insurance
Your personal auto policy won't cover business vehicles, and your tree service trucks definitely qualify as commercial vehicles. Commercial auto insurance covers property damage and medical expenses from accidents involving your company vehicles. Standard trucks run $1,500-$3,000 annually, but specialized equipment like bucket trucks costs significantly more—expect $2,500-$5,000 per vehicle per year.
Don't try to save money by keeping vehicles under personal policies. When an adjuster discovers you were using that truck for commercial tree work, your claim will be denied, and you could face policy fraud allegations.
Optional Coverage: Smart Protection for Growing Businesses
Once you've locked in the essentials, these additional policies provide extra protection that becomes increasingly important as your business grows.
Equipment and Inland Marine Insurance
Chainsaws, chippers, stump grinders, climbing gear—your equipment represents tens of thousands of dollars in investment. Equipment insurance (also called inland marine) protects these tools whether they're at your shop, in your trucks, or at a job site. The coverage typically costs 2-5% of your equipment's value annually, which means $1,000-$12,500 for most tree service companies.
Tree care businesses pay an average of $57 monthly for this protection. When you consider what it costs to replace a stolen chipper or repair storm-damaged equipment, it's money well spent.
Commercial Umbrella Insurance
Umbrella coverage kicks in when your general liability policy hits its limit. Most experienced tree service companies carry $1-5 million in umbrella coverage, and it's relatively affordable for the protection it provides. This becomes essential when you're taking on commercial projects, working near power lines, or doing high-value residential work in affluent neighborhoods where damage claims can quickly exceed standard policy limits.
Business Owner's Policy (BOP)
A BOP bundles general liability with commercial property insurance at a discounted rate. If you own or lease business property—an office, storage yard, or equipment barn—this protects your building and contents. Tree service professionals pay an average of $181 monthly for a BOP, which typically costs less than buying the coverages separately.
When to Add Each Coverage Type
Day one of operations: Get general liability and commercial auto before you take on your first client. If you hire your first employee (or work with 1099 contractors who might be reclassified as employees), add workers' comp immediately—waiting even a week creates massive legal and financial exposure.
When your equipment value exceeds $10,000: Add equipment insurance. Below that threshold, you might absorb replacement costs, but once you're invested in serious gear, you can't afford to replace it out of pocket.
When bidding commercial work: Add umbrella coverage and increase your general liability limits to $2-5 million. Commercial clients won't even look at your bid without proof of these higher limits. Property managers and municipal contracts almost universally require enhanced coverage.
When you lease or buy business property: Get a BOP. The property protection component becomes essential the moment you're responsible for a building or yard space.
Annual Review Checklist
Set a calendar reminder to review your insurance every year. Your business changes, and your coverage needs to keep pace. Here's what to check:
Payroll changes: Workers' comp premiums are based on payroll. If you've grown your crew, update your policy to avoid underpayment penalties during the annual audit.
Service expansion: Started doing emergency storm work? Crane-assisted removals? Work near power lines? These higher-risk services need to be disclosed and may require coverage adjustments.
Vehicle inventory: Add new trucks and remove sold ones from your commercial auto policy. Keeping accurate records prevents coverage gaps and eliminates premiums on vehicles you no longer own.
Equipment value: Update your equipment schedule with new purchases and current replacement costs. Inflation affects equipment prices, and yesterday's coverage amounts might not replace today's gear.
Client requirements: Review contracts from your largest clients. If they've increased their insurance requirements, you need to update your policies to maintain those relationships.
Tree service insurance isn't cheap, but it's infinitely cheaper than the alternative. The average tree service business pays $2,295-$2,699 annually for comprehensive coverage—a small price for protecting everything you've built. Work with an agent who specializes in tree service insurance, not a generalist who might miss critical coverage gaps specific to your industry.
Use this checklist as your roadmap. Start with the essentials, add optional coverage as your business grows, and review everything annually. Your future self will thank you for getting this right from day one.
