Tree Service Insurance (2026)

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?

Operating a tree care company involves significant hazards. Your daily routine involves dangerous machinery, heavy timber, and working at great heights. Even with strict safety protocols, accidents can happen. One mistake could result in expensive property damage or severe injuries.

To safeguard your company, employees, and assets, you need a robust insurance plan. Proper coverage handles the financial burden of legal fees, medical bills, and repairs when things go wrong.

Below is an overview of the key types of business insurance policies that tree service owners should secure.

Workers’ Compensation Insurance

Most states require this coverage as soon as you hire your first employee. Tree work is physically demanding and dangerous, making this policy vital. It protects your staff if they suffer a work-related illness or injury. The policy covers medical expenses, rehabilitation costs, and a portion of lost wages while the employee recovers.

Example: A crew member slips while pruning a high branch and suffers a fracture. Workers’ compensation pays for the emergency room visit and provides income while they are unable to work.

Tools & Equipment Insurance

Your ability to work depends on specialized gear like wood chippers, stump grinders, and chainsaws. Standard property insurance often does not cover these items once they leave your main office. Tools and equipment insurance covers the cost to repair or replace your gear if it is lost, stolen, or damaged, whether it is in your truck or at a job site.

Example: You store your climbing gear and chainsaws in a locked company truck, but thieves break in overnight and steal everything. This policy provides funds to replace the stolen tools so you can get back to business.

General Liability Insurance

This is usually the first policy a small business purchases. It shields you from financial loss regarding third-party claims of property damage, bodily injury, and personal injury. If your operations accidentally hurt a bystander or damage a client’s property, this insurance covers the repair costs, medical bills, and legal defense fees.

Example: While you are cutting down a dead tree, a large limb falls unexpectedly and crushes a section of the client’s fence. If the client demands payment for repairs or decides to sue, General Liability covers the costs.

Commercial Auto Insurance

Personal car insurance policies rarely cover accidents that occur while you are driving for business purposes. You need commercial coverage to protect the trucks and vans used to transport crews, haul debris, or tow equipment. It covers liability and physical damage if your vehicle is involved in a crash.

Example: An employee driving the company bucket truck is distracted and rear-ends a sedan at a stoplight. Commercial auto insurance pays for the damage to the other car and medical costs for the other driver.

Tree service companies typically pay an average of $190 per month, or $2,280 per year, for this specific coverage.

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?

Insurers analyze several factors to set your rates. The scale of your business is a primary driver. A solo contractor typically pays less than a company with a full crew and heavy machinery.

The specific services you offer also impact the price. High-risk activities like working near power lines or removing massive trees can increase your premium. Your location plays a big role as well, since rates vary by city and state.

Carriers also look at your claims history, the value of your gear, and your commercial vehicles. Finally, the amount of coverage you buy directly affects the final cost.