Tree Service Insurance’s Average Cost
Did you have to look at how much it costs to insure a tree service? If we have the answers, have you done a Google search? Are you just starting out as a new tree service business and want these answers? One thing is for certain, tree care companies do highly hazardous work on a daily basis to maintain different trees, in and out of dangerous situations. 1000 percent of this type of company must be protected and cover not only themselves, but their staff, equipment, vehicles, etc. There are risks at every turn, from being high up in trees to working with chainsaws. Large branches are pruned, trees are cut back from power lines and large trees that may be dead or damaged are even removed. You need adequate insurance for Tree Trimming Services Detroit, covering many different aspects of your business. We’re going to go over what most specialist tree service companies have below.
How much is a Tree Service General Liability Insurance?
If you run a qualified tree service company, general liability insurance is required. This type of insurance will ensure that the company is covered by this type of insurance if a mistake is made or something is damaged. General liability insurance will also cover employee injuries and other bystanders who could also be hurt by the company. It seems to be normal for many tree service companies to insure themselves for between $500,000 to $2 million dollars. Some can have up to $10 million in coverage, depending on the size of the business and the type of work you do. The average cost nationwide for that amount of coverage is between $3,000 and $6,000 a year, but could be up to $10,000 per year.
How much does an accident insurance service cost for a tree?
Other than general liability, accident insurance is a more specific type of insurance. It safeguards your personal property so that any property damage to your home or vehicle caused by the tree service company will be covered. Usually, this type of insurance will cover at least $500,000 to $1 million dollars. In most cases, this is sufficient to cover the cost of any minor or major home repairs if something happens. This insurance is an additional coverage that is secure when and if everything is not covered by general liability. Tree service companies have an average cost of $3,000 and $6,000 per year for accident insurance coverage.
How much does a tree service cost with Commercial Auto Insurance?
If you run a professional tree service company and have multiple crews going every day, it means that crews, bucket trucks, chipper trucks, any vehicle your company has on the road should be covered by commercial car insurance if you provide transportation. The tree care firm needs to have its commercial vehicle insured so that if a branch falls on one of its trucks while they are working or on the road involved in an accident, you don’t have to come out of pocket. Most tree service companies have between $50,000 to $200,000 in commercial auto insurance, which tends to be sufficient to cover any damage done to property or others on the road by company vehicles. The average cost is between $2,000 and $5,000 per year for commercial auto insurance.
How much does a tree service cost with Workers Compensation Insurance?
Even if a tree service company has general liability insurance if the business does not have workers’ compensation, you could be sued by one of your employees as the owner of a tree service company if they are insured or hurt while working. Homeowners should check to ensure that companies have workers’ compensation because the homeowner could have to pay for a worker hurt on their property if a tree worker is injured on a homeowner’s property. Good tree service companies will maintain workers’ compensation insurance for worker’s compensation of up to at least $1 million. The average cost of employee compensation insurance is about $5,000 to $7,000 per year for this amount of coverage.
How much insurance is there for homeowners?
The tree service company does not hold this type of insurance; homeowners are liable for their own home. As a tree service company, it wouldn’t hurt to ask the homeowner if the insurance is up to date for their homeowner. If you feel there is a risk that a tree might fall on their home to demolish it in the event of tree removal, it is always safe when the homeowner has sufficient coverage to cover the cost of their home if a disaster were to occur. Be sure there is a clause for tree removal accidents that would cover your home’s cost. The average cost of insurance for homeowners across the country is between $700 and $1200 per year.
Will homeowners pay for tree removal insurance?
Tree services often get the question, is my homeowner’s insurance going to pay for removing the tree? The answer is that it depends on the requirements. The cost of removing a tree which has not fallen will not be covered most of the time by home insurance. Homeowners are responsible for maintaining their home and property, so homeowners are not covered by a standing sturdy tree, tree trimming and maintenance are on the homeowners. Even if a tree is dead or dead, it is still the duty of the homeowner to maintain the tree. As a tree service company, a great question to ask if this issue arises is, “Is your tree still standing?”
Now, if a tree falls due to a storm, high winds, and the house is damaged, home insurance will usually cover it and pay for repairs in addition to the cost of removing the tree from the property to fix the damage caused by the tree. What if the tree fell without damaging any structures in the backyard? Then, as a homeowner, for that, you’d have to get out of your pocket. A good rule of thumb is that if you have a shed covered under home insurance, the tree falling would have to cause damage to your home if it could also cover your shed or exterior garage. Home insurance usually does not cover the removal of a tree unless it falls and causes damage to a fence, garage or home.
Home insurance will pay for removing a tree in some cases if it falls into or blocks your driveway. If you are a homeowner to verify your coverage or call your insurance agent for details, it is recommended to give your homeowner’s insurance policy a good lookover now. Most insurance coverage for homeowners will cover tree removal of up to $1,000 per storm, which can still result in out of pocket costs when it comes to removing a tree that has fallen due to a storm.
Simply put, it is very essential that it is the law in most states to use a licensed, bonded and insured tree service provider. When it comes to something as potentially hazardous as tree trimming, tree removal, and other tree services, it makes sense to have these extra measures of protection. As a tree service company, you should take pride in being licensed, bonded, and insured, brag about your marketing materials on your website, let people know as often as possible that you are running a professional company.
What Tree Service Companies “Licensed, Bonded and Insured” means
Some states require professionals who work in or outside the homes of individuals to obtain and maintain a current license before certain services can be performed. Tree services are not exempt from this, it is proof that the company has met minimum service requirements to earn a license to provide tree services in your state. Check the regulations of your state!
As a tree service company, being bonded means you have a security bond that protects you and the client in case you need to file a claim against the company. If your claim is decided to be valid and a judgment is given but the company is unable to pay, as a result, the money would come from the guarantee bond.
Tree service companies that are insured protect themselves and their clients in the event of an incident, accident, or property damage that occurs during the time they are in business from financial damage. It is becoming a known fact that there are a bunch of pop-up tree services that undermine and cheat the industry, legitimate tree service businesses to compete on pricing when cheap service is provided by non-legit companies that do not have insurance. Without this type of insurance, an accident occurring on the property of a homeowner could place potential liability on them. It puts homeowners at risk. It is essential to use a tree service as a homeowner that maintains employee compensation insurance, so you are not held liable if one of the employees gets hurt on the job while working on your property.
The accident and damage potential for Tree Service Companies
As a tree service firm, this is why being a licensed, bonded and insured tree service provider is so important. If the service itself weren’t so dangerous, it would not be so essential. Let’s face it, working with heavy equipment, bucket trucks, climbing equipment, chainsaws, at the same time being so high up in trees, can be very dangerous every single day. Certified Arborists are trained on equipment, safety precautions, etc. in their field so that they know and continue training on these things, but accidents can and do occur. Licensing, bonding and insuring helps protect the business owner and protects the homeowners when they receive tree service.