Tree Service Insurance (2025)

Tree service work can be dangerous, and accidents can happen at any time. Whether it’s a falling branch, damaged property, or an injured worker, the risks are real. That’s why business insurance is so important.

It helps cover the costs of accidents, legal fees, and unexpected damage, so you can keep your tree service business running safely and with peace of mind.

Why Do Tree Service Businesses Need Insurance?

Tree service businesses need insurance because accidents can easily happen on the job. Imagine cutting down a tree and it falls the wrong way, damaging a client’s roof or fence. Without general liability insurance, you’d have to pay for the repairs yourself, possibly thousands of dollars out of pocket.

There are also other risks, like a worker getting hurt while using a chainsaw, a falling branch hitting a parked car, or a client claiming your work caused damage to their property. Insurance acts like a safety net, helping cover costs related to injuries, property damage, or even lawsuits.

Having the right insurance also makes your business look more professional. Many customers won’t hire a tree service unless they see proof of insurance. Whether you work alone or run a crew, insurance gives you peace of mind, knowing your business is protected if something goes wrong.

What Insurance Do Tree Service Businesses Need?

Running a tree service business can be risky, even if you’re careful. You’re working with heavy equipment, cutting large branches, and climbing trees, one wrong move can lead to injury or property damage.

To protect yourself, your workers, and your business, it’s important to have the right insurance. The right coverage can help pay for damage, injuries, or legal costs if something goes wrong on the job.

Here’s a simple breakdown of the most important business insurance policies tree service businesses should consider.

General Liability Insurance

General liability insurance is the foundational insurance policy for most small businesses. It protects you from third-party claims of bodily injury, property damage, and personal injury. If you accidentally damage a client’s property or someone gets hurt because of your work, general liability pays for legal fees, repairs, or medical bills.

Example: A tree branch accidentally falls and damages a client’s fence while you’re trimming trees in their yard. The client demands that you pay for the repairs. General liability insurance can cover the cost of fixing the fence and any legal fees if the client decides to sue.

Workers’ Compensation Insurance

Workers’ compensation insurance covers your employees if they get injured or become ill as a result of their job. It covers medical bills, lost wages, rehabilitation, and even death benefits. It’s also required by law in most states if you have employees.

Example: One of your crew members falls while climbing a tree and breaks their wrist. Workers’ compensation insurance helps pay for their emergency room visit and covers lost wages while they recover.

Workers’ comp is required in almost every state for tree service businesses with employees.

Commercial Auto Insurance

If you or your employees drive for business purposes, personal auto insurance likely won’t cover accidents. Commercial auto fills that gap. It covers vehicle damage, injuries, and liability if you’re involved in an accident while driving for work.

Example: One of your employees is driving a company truck to a job site and accidentally rear-ends another vehicle. Commercial auto insurance covers the damage to both vehicles and any medical bills for the people involved.

Tree service companies pay an average of $190 per month, or $2,280 per year, for commercial auto insurance.

Tools & Equipment Insurance

Tree service work relies on expensive tools like chainsaws, stump grinders, and climbing gear. Tools & equipment insurance protects these items if they’re stolen, lost, or damaged. It will cover the repair or replacement costs for tools and equipment you own, rent, or borrow, whether they’re on the job site, in your truck, or in storage.

Example: Your crew leaves a chainsaw and climbing gear in the truck overnight, and it gets stolen. Tools & Equipment Insurance helps cover the cost of replacing the stolen items so you can get back to work.

Tree Service Insurance Requirements

Tree service businesses are not required by federal law to carry insurance, but many states, cities, and clients have their own rules. Having the right insurance can also protect your business from big financial losses if something goes wrong.

Workers’ Compensation Insurance

If you have employees, most states require you to carry workers’ comp insurance. It helps pay for medical bills and lost wages if someone on your crew gets hurt, like falling from a tree or getting cut by equipment. In some states, it’s not required for private employers, but it’s still a smart way to protect your workers and your business.

Commercial Auto Insurance

If your business owns trucks or other vehicles used for work, you’ll likely need commercial auto insurance. It covers accidents while driving to and from job sites.

General Liability Insurance

Even though it’s not required by law, general liability insurance is highly recommended. It helps cover costs if you accidentally damage a customer’s property or if someone gets injured near your work area. Some customers or cities may require this insurance before hiring you.

Tools & Equipment Insurance

Tree service work depends on expensive tools like chainsaws, climbing gear, and wood chippers. Tools & Equipment Insurance helps cover the cost if these items are stolen, lost, or damaged, whether they’re on the job, in your truck, or in storage.

How Much Does Tree Service Insurance Cost?

Tree service insurance usually costs between $1,560 and $2,500 per year for general liability coverage. If you’re running a small business by yourself with no employees, your cost will likely be on the lower end. But if you have a crew, drive company trucks, or need extra coverage, your premium may be higher.

The price of business insurance depends on a few things, like where your business is located, how many employees you have, and what kind of tree work you do. For example, jobs involving tall trees or hazardous removals are riskier and may cost more to insure. Your claims history and the value of your tools and equipment also affect the price.

Insurance companies also look at how much coverage you choose and whether you bundle your policies, like general liability, tools insurance, and commercial auto. While it might be tempting to pick the cheapest plan, it’s better to choose coverage that truly protects your business from real risks like injuries, property damage, or stolen equipment.

How Is Your Tree Service Insurance Cost Calculated?

Insurance companies look at many things when deciding how much your tree service insurance will cost. One of the biggest factors is the size of your business. If you work alone, you’ll usually pay less. But if you have employees, several trucks, or take on large jobs, your premium will likely be higher.

The type of tree work you do also matters. High-risk jobs like tree removal near power lines or cutting very tall trees can raise your insurance cost. Where you work also affects the price, insurance rates can change depending on your state, city, or even your ZIP code.

Other things that affect your cost include your past claims history, the value of your tools and equipment, and whether you own or lease work vehicles. The kind of coverage you choose and how much protection you want will also change the price.

Tips To Lower Your Tree Service Insurance Costs

Insurance costs can add up quickly for tree service businesses, but there are practical ways to keep your premiums manageable without skimping on coverage. The key is to understand which factors you can control and take proactive steps to minimize risk.

• Bundle your policies. Combine general liability, property insurance, and other coverages into a business owner’s policy (BOP) to qualify for a multi-policy discount.
• Consider Hired and Non-Owned Auto (HNOA) coverage. If you or your employees use personal vehicles for work, HNOA can be more cost-effective than a full commercial auto policy.
• Keep a clean claims history. Avoiding claims through proper training and safety procedures can lower your risk profile and lead to reduced premiums over time.
• Invest in workplace safety. Implementing safety protocols and training for employees helps reduce the chances of injury claims and can lower workers’ compensation costs.
• Raise your deductible. Opting for a higher deductible can lower your monthly premium, but be sure your business can absorb the extra out-of-pocket cost in case of a claim.
• Review your coverage annually. Adjust your policies as your business evolves to avoid paying for coverage you no longer need.
• Compare quotes from multiple insurers. Rates vary widely, so shopping through Insuranceopedia can help you find the best deal for your current needs.

Taking a strategic approach to your insurance planning can make a real difference in your bottom line. With a little research and regular review, you can stay protected and cost-efficient at the same time.

Following these steps helps ensure you’re properly insured and set up to handle risks confidently and professionally.