How Much Does Tree Service And Arborist Insurance Cost? 2025 Rates

U.S. tree service businesses can expect to pay between $500 and $1,500 annually  for small operations and $2,500 to $10,000 for big companies. The primary cost drivers are employee count, claims history, location of business, and type of equipment used.

How Much Does Tree Service And Arborist Insurance Cost?

The average tree service business in the U.S. pays between $500 and $1,500 annually for small operations and $2,500 to $10,000 for big companies. That breaks down to roughly $40 and $125 per month for small operations and $200 to $800 for big companies. This is just a general estimate, the actual cost of business insurance can be very different depending on your business.

Every tree service company is different and has its own risks, so insurance prices can vary a lot. For example, a small arborist who works alone and only does light pruning on residential properties will likely pay much less than a larger tree removal business with a crew and heavy equipment.

The kind of work you do, the tools you use, how many people you employ, and where you’re located all affect your insurance cost.

Here are some of the biggest cost drivers:

• Number of employees (affects workers’ comp and liability)
• Property size and value (affects commercial property coverage)
• Past claims history (insurers charge more if you’ve filed claims)
• Business interruption coverage and other add-ons

Understanding these variables can help you better estimate your insurance needs and prepare for the real costs of protecting your Tree Service and Arborist business.

Average Tree Service Insurance Costs For Coverage Types

Protecting your tree service business means having the right insurance for the right risks. Different types of insurance cover different kinds of problems, like accidents, injuries, or damage. Knowing what each policy covers, how much it usually costs, and what factors affect the price can help you choose the best insurance plan for your business.

Here’s a simple breakdown of the main types of insurance most tree service businesses should consider.

• General liability insurance: $135 per month
• Workers’ compensation insurance: $184 per month
• Commercial auto insurance: $202 per month
• Tools and equipment insurance:$59 per month

Workers’ Compensation Insurance

Tree care work involves climbing, chainsaws, heavy equipment, and falling branches, which means injuries are more likely than in many other trades. Workers compensation insurance helps cover medical care and a portion of lost wages if an employee is hurt while working.

For example, if a crew member slips while harnessed in a tree and injures their shoulder, workers compensation would pay for treatment and income support until they can return to the job. Costs depend heavily on crew size and the danger level of the work performed.

The average cost of workers compensation insurance for a tree service company is around $184 per month.

Here are sample annual premiums across ten states:

Note: Estimates based on blended averages from multiple agency sources and typical payroll levels for tree service operations. Actual premiums vary by employee count, job classifications, claims history, safety practices, and state regulations.

General Liability Insurance

Tree trimming, stump removal, land clearing, and crane-assisted work can all create risks for property damage or injuries to bystanders. General liability insurance helps protect your business if falling limbs damage a roof, debris hits a nearby fence, or a homeowner claims harm during a job.

For example, if a limb falls during pruning and crushes a customer’s vehicle, general liability would help pay for repairs and legal defense if needed. Business size, job locations, subcontractor involvement, and coverage limits all affect the cost.

The average cost of general liability insurance for a tree service business is about $135 per month.

Here are sample annual premiums across ten states:

Note: Estimates pulled from aggregated premium ranges for tree care companies. Actual costs depend on revenue, crew size, service types, equipment used, claims history, and state rating factors.

Tools & Equipment Insurance

Tree services rely on specialized equipment that is costly to replace, including climbing gear, saws, chipper blades, rigging tools, grinders, and rope systems. Tools and equipment insurance protects these items if they are stolen, damaged, or destroyed on a job site, in transit, or while stored.

Costs vary based on total equipment value and the type of work performed. Higher replacement costs lead to higher premiums.

The average cost of tools and equipment insurance for tree service companies is about $57 per month.

Annual premiums across ten states:

Note: These estimates reflect typical annual tools and equipment insurance premiums for tree service businesses based on a blend of small independent agencies and larger carriers, and are tailored to a representative small-to-mid sized operation in each state; actual premiums will vary with coverage limits, total insured value of tools and equipment, business revenue, employee count, claims history, storage/security practices, and local market conditions

Commercial Auto Insurance

Tree service companies often operate trucks, trailers, chipper units, bucket trucks, dump trucks, and transport vehicles. Commercial auto insurance protects these vehicles if they are damaged in an accident, vandalized, stolen, or cause harm to others.

Costs depend on driver records, the number of vehicles, equipment mounted to those vehicles, and mileage associated with job site travel.

The average cost of commercial auto insurance for a tree service business is about $147 per month.

Average annual premiums by state:

Note: These are approximate annual estimates derived from typical commercial auto premiums for tree service businesses as offered by a mix of small independent agencies and larger insurers; actual premiums will vary based on fleet size, vehicle types, driving records, revenue, coverage limits, state regulations, location-specific risk factors, and available discounts.

Tree Service Business Insurance Costs By Provider

Tree service business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: Estimates are based on average annual premiums for tree service and arborist businesses gathered from market summaries covering both small operators and larger companies, and reflect common coverages such as general liability, commercial auto, equipment and tools coverage, inland marine, and workers’ compensation; actual premiums will vary by location, company size, number of employees, types of equipment used, claims history, training and safety programs, and coverage limits

What Factors Impact Your Tree Service Insurance Costs?

Tree service insurance costs are carefully calculated based on how risky your work is. Insurance companies look at things like the type of tree work you do, where your business is located, your past claims, and the kind of equipment you use to figure out how much you’ll pay for coverage.

Type Of Tree Work

Jobs like tree removal or working near power lines are riskier and usually cost more to insure than basic pruning or trimming. As such, companies that only trim trees in residential backyards may have fewer risks compared to those that manage complex state-level contracts to work near utility lines or in high-traffic areas.

Size Of Business

Larger companies with more employees, vehicles, and equipment typically pay higher premiums than solo arborists or small crews. This goes hand-in-hand with the services offered, such that the more services you add to your business (emergency tree removal, tree removal/trimming around utility poles), the more your risk grows. This also increases liability.

Location Of Operation

Working in busy cities, storm-prone areas, or regions with higher accident rates can raise your insurance costs. Storms, for example, might equate to higher numbers of emergency removals during winter, increasing the risks for your employees. Moreover, your risk profile as a tree service business is contingent upon the tree density in your area.

Experience & Training

Businesses with certified arborists and strong safety practices may get lower rates than those with less training or experience. Implementing formal, documented safety programs and obtaining things like ISA certifications for safety can reduce your risk, and subsequent costs.

Claims History

If you’ve had past accidents or insurance claims, your premiums will likely be higher compared to businesses with a clean record. Having a clean OSHA record can help you potentially lower rates.

Type & Value Of Equipment

Tree service and arborist businesses can carry a wide array of tools, depending on the services they offer. This can range from basic safety equipment like hardhats to tree stump removal tools like stump grinders. Things like chippers or bucket trucks also increase costs for several types of insurance like tools and equipment and commercial auto insurance. Any expensive tools and heavy machinery like bucket trucks or wood chippers increase the cost of tools and equipment coverage.

Employee Count & Job Risk

More workers mean a higher chance of injury, so your workers’ comp insurance will cost more as your team grows.

Insurance Provider

Rates vary among insurers. Some specialize in hospitality risks and offer better pricing or more flexible options. Comparing quotes from multiple carriers can save you money.