General Liability Insurance for Tree Services
Regardless of their industry, all businesses encounter risks that should be insured. General liability insurance is the most popular and comprehensive policy purchased by business owners.
General liability insurance protects you against the following risks:
- Physical harm
- Loss of property
- Payments for healthcare
- Defense and verdict in the courts
- Injuries to the person and to the brand
While general liability insurance is not needed by law, it is exceedingly dangerous to operate without coverage. If your company gets sued, you could be hit with thousands of dollars in legal fees (or more). The only way to avoid your business being destroyed by this type of occurrence is to have an adequate general liability insurance coverage in place to help compensate for these damages.
General Liability Insurance Costs
The average tree service firm in the United States spends between $400 and $1500 per year on general liability insurance for $1 million.
The cost of your coverage is determined by several factors. Among them are:
- Employees in number
- Limitations on how many times something happens
- Maximum total amount
If you purchase general liability insurance as part of a business owner’s policy (BOP) rather than as a standalone policy, you may be able to save money. A business owner’s policy (BOP) is a more complete insurance package that covers numerous types of coverage, such as business interruption and property insurance.
Tree Service Businesses Require Additional Coverage
While general liability insurance is the most crucial, there are various different types of coverage to be mindful of. Other types of insurance that all tree service company should have include:
Insurance for commercial vehicles
Vehicles are used by tree services to transport equipment and move from one property to the next. Even if the driver was technically off-duty at the time of the accident, a personal auto insurance policy will not cover potential vehicle damage.
In the event of a collision, commercial auto insurance will cover both the car and any other property damage.
Insurance for business property
If your tree service company has its own office or warehouse, you’ll need commercial property insurance to cover both the building and the contents.
If your company keeps expensive equipment on site or sells specialist tools to customers, commercial property insurance will most likely cover the cost of repairing the building and replacing the tools in the case of a covered event such as a fire or severe storm.
Professional Liability Insurance
Business owners are covered by professional liability insurance in the event that their work causes damage to the building or grounds. This policy covers any errors or omissions made by your staff. If someone unintentionally cuts down the wrong tree, you’ll almost probably be protected.
Types of Insurance That Some Tree Service Companies May Require
In addition to the insurance listed above, your tree service business may require additional coverage depending on particular aspects of your operations. Some of these may not apply to your business, so make sure to ask your agent which insurance are appropriate for you.
Umbrella Insurance for Businesses
Commercial umbrella insurance can cover a wide range of potential costs that exceed the limitations of your basic general liability insurance policy, whether it’s a lawsuit from a competing tree service company or a medical claim caused by pesticide use.
Insurance for Product Liability
You’ll require product liability insurance if your company sells products to its customers, such as pruners or hedge clippers. Even if your company did not create the products, you might be held liable for any harm they cause merely because you sold them.
Additional Security Measures for Your Company
Investing in company insurance is simple (and necessary), but it should not be your first line of defense. Yes, insurance will cover your company’s financial damages in the event of an accident, but it’s much preferable to avoid them altogether.
With this in mind, here are some steps you can take to better secure your company:
- Use contracts and other business documents that are legally sound. (For some of the most typical legal forms, we provide free templates.)
- To protect your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, visit our step-by-step guidelines.)
- Keep your business licenses up to date.
- Streamline the internal procedures of your company. This will eliminate unnecessary variables from frequent processes and establish a secure, consistent corporate environment.
- Look into LLC Insurance if your company is an LLC.