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

In 2025, 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 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 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

General Liability Insurance

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

General liability covers third-party bodily injury, property damage, and advertising injuries. For example, if a branch accidentally falls and damages a customer’s car while you’re trimming a tree, your general liability insurance can help pay for the repairs and cover any legal costs if the customer decides to sue.

Typical policy limits are $1 million per occurrence and $2 million aggregate.

The cost of general liability insurance depends on a few things, like how much coverage you want, how big your tree service business is, how often you work around people or on busy properties, and if you need to add others to your policy, like contractors or property owners.

Workers’ Compensation Insurance

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

A workers’ compensation policy pays for medical expenses and lost income if you or an employee gets hurt or sick while working.

For example, if a tree worker cuts their hand with a chainsaw while trimming a branch, workers’ compensation insurance would help pay for their medical treatment and cover part of their lost wages while they recover and can’t work.

The cost of workers’ comp insurance mostly depends on how many employees you have and how risky their jobs are. The more dangerous the work, the higher the cost.

Commercial Auto Insurance

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

Commercial auto insurance covers vehicles owned or used by the business for accidents, theft, vandalism, or damage. For example, if your tree service truck is hit while parked at a job site or gets damaged in an accident on the way to a client’s property, commercial auto insurance would help pay for the repairs and any damage caused to others.

The cost of commercial vehicle insurance depends on things like how much coverage you want, how many vehicles you have, how much they’re worth, your past insurance claims, and the driving records of your employees who use those vehicles.

Tools & Equipment Insurance

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

Tools and equipment insurance helps protect your gear wherever it is, whether you’re driving to a job, working on-site, or storing it somewhere else. It can cover lost, stolen, or damaged items like climbing ropes, saws, pesticide sprayers, and other tools worth $10,000 or less.

The cost of this coverage depends on how much your equipment is worth and the kind of tree work you do.

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.

Size Of Business

Larger companies with more employees, vehicles, and equipment typically pay higher premiums than solo arborists or small crews.

Location Of Operation

Working in busy cities, storm-prone areas, or regions with higher accident rates can raise your insurance costs.

Experience & Training

Businesses with certified arborists and strong safety practices may get lower rates than those with less training or experience.

Claims History

If you’ve had past accidents or insurance claims, your premiums will likely be higher compared to businesses with a clean record.

Type & Value Of Equipment

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.

How To Lower Your Tree Service Insurance Costs

Running a tree service & arborist business is tough, but your insurance bill doesn’t have to break the bank. While you can’t eliminate the need for coverage, you can take smart steps to reduce your premiums without sacrificing protection. Here are some practical ways to lower your tree service business insurance costs:

1. Bundle Your Policies

One of the easiest ways to save is by bundling multiple policies. Most insurers offer a Business Owner’s Policy (BOP) that combines general liability and property insurance at a lower rate than if you bought them separately. If you also need workers’ compensation, bundling both through the same provider can lead to additional discounts. Not only does this simplify your paperwork, but it also makes your coverage more cost-efficient.

2. Ask About Discounts

Some insurance companies give discounts to tree service businesses that stick with a policy for two or three years instead of renewing every year. You may also get a lower rate if you pay your insurance premium all at once instead of making monthly payments.

3. Implement Safety Measures

Accidents cost both you and your insurance company, so showing that you work safely can help lower your premiums over time.

For example, wearing proper safety gear, keeping equipment well-maintained, using spotters when cutting trees, and marking off work areas can reduce the risk of injury to workers or damage to property.

4. Create A Safe Working Environment

Implementing a safety program can reduce your workers’ compensation insurance costs. This includes training your team on safe tree cutting techniques, proper use of climbing gear, equipment maintenance, and emergency response procedures. Fewer accidents and injuries lead to fewer claims, which means lower premiums over time.

5. Adjust Your Deductible

Your deductible is the amount you pay out of pocket before insurance coverage kicks in. Choosing a higher deductible can significantly reduce your monthly premiums. Just make sure you can comfortably cover that amount if a claim arises.

By taking these steps, you not only save money but also make your tree service & arborist business a safer, more resilient business.