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.

Cheapest Tree Service Workers’ Compensation Insurance

For Workers’ Compensation, the cheapest carrier is The Hartford, with average annual premiums around $2,504 for a small team.

Note: Workers’ Compensation is one of the most variable costs. These estimates are based on a small crew. Your actual premium is a percentage of your total payroll and is dictated by state-specific rates and your company’s safety record.

Cheapest Tree Service General Liability Insurance

Based on industry data, Nationwide often provides the cheapest General Liability coverage, with an estimated average cost of $1,064 per year.

Note: These estimates are for a standard $1 million/$2 million General Liability policy for a small tree service business. The final premium depends heavily on your state, claims history, and the specific services you perform (e.g., trimming vs. full removal).

Cheapest Tree Service Business Owner’s Policy

For a Business Owner’s Policy (BOP), Nationwide is frequently the cheapest option, with an estimated average premium of $1,569 per year.

Note: These BOP estimates bundle General Liability and Commercial Property. Many high-risk tree service companies may be ineligible for a BOP and must purchase these policies separately. Costs will vary based on your property value and coverage limits.

How Much Does Tree Service Insurance Cost?

Tree service insurance usually costs between $1,900 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.

Note: These figures are estimates based on industry data for small U.S.-based tree service businesses. Actual premiums will vary significantly based on your company’s specific details, including your state, number of employees, payroll, claims history, coverage limits, vehicle types, and the value of your 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.