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Insurance basics for tree service owners
Tree work drops heavy wood near houses, cars, wires and people. Insurance is what keeps one bad day from ending your company. This guide explains the main policies in plain English: general liability, workers comp, commercial auto, equipment cover and certificates of insurance, plus how to shop for them.
Please note: Lirevon is not an insurance agent or broker. This is a short explanation, not insurance, legal or tax advice. Rules change by state. Talk to a licensed agent in your state before you buy or change a policy.
By Umair Nawaz, founder of Lirevon Updated How we check facts
Why insurance matters more in tree work
Most trades can damage a wall or a floor. A tree company can drop several tons of wood on a roof in one second. The work is done at height, with sharp tools, near power lines, often in bad weather after a storm. That mix is why insurers look at tree work closely and why some will not write it at all.
Insurance also affects who hires you. Many homeowners now ask "are you insured?" on the first call. Property managers, HOAs, cities and commercial clients usually will not let you start without proof. So insurance is both protection and a sales tool.
The main policies at a glance
Here are the five policies most tree companies talk about with their agent. Each one covers a different kind of loss. One does not replace another.
| Policy | What it covers | Who usually needs it |
|---|---|---|
| General liability | Damage to other people’s property and injuries to people who are not your workers, such as a limb through a neighbor’s roof. | Almost every tree company. Many customers and most commercial clients ask for it. |
| Workers compensation | Medical bills and lost wages when one of your workers is hurt on the job. | Required for employers in most states. Rules on who counts and when it starts vary by state. |
| Commercial auto | Crashes and damage involving your work trucks, and often a trailer while it is hitched. | Any company that drives trucks for work. A personal auto policy may not cover business use. |
| Inland marine (equipment) | Theft or damage to tools and machines that move from job to job: chippers, stump grinders, saws, loaders. | Anyone with equipment they could not afford to replace out of pocket. |
| Umbrella | Extra limits on top of your liability and auto policies when a big claim uses up the base limit. | Companies doing large removals, crane work or commercial contracts with high limit demands. |
On a small screen, swipe the table sideways to see every column.
General liability
This is the policy most people mean when they ask "are you insured?" It is the base layer for almost every tree company.
What it is for
General liability, often called GL, pays when your work hurts someone who does not work for you, or damages property that is not yours. In tree work, the classic example is a limb that swings the wrong way and lands on a house, a car, a fence or a power line drop.
Read the exclusions
Some general liability policies written for landscapers or general contractors exclude tree removal, or exclude work above a set height. Ask the agent, in writing, whether the policy covers tree removal, climbing, rigging and crane-assisted work. If an exclusion is buried in the policy, you may find out only after a claim.
Limits
A limit is the most the policy will pay. You will see a per-claim limit and a yearly total limit. Commercial clients, cities and property managers often set a minimum limit in their contract. Ask for the number before you bid, not after you win.
Workers compensation
Workers comp covers your own people. General liability does not. If a groundworker is cut by a saw or a climber falls, this is the policy that pays medical bills and part of their lost wages.
Why it matters so much here
Tree work is known as one of the more dangerous trades, with falls, struck-by injuries, chainsaw cuts and electrical contact. A single serious injury can bring medical bills and lost wages that a small company cannot pay on its own.
State rules differ
Workers comp is run by each state, not the federal government. Each state sets who must carry it, how many workers trigger the rule and whether owners count. Check your own state’s workers comp board. This is a short explanation, not legal or insurance advice.
How the price is set
Premiums are usually based on payroll and a class code for the type of work. Tree trimming and removal codes usually cost more per payroll dollar than office or landscaping codes. Putting workers under the wrong code to save money can lead to a large bill at audit time.
The yearly audit
Many policies are priced on your estimated payroll, then checked at the end of the year. If payroll was higher than you said, you may owe more. Keep clean payroll records so the audit is quick.
Subcontractors and 1099 crews
If you hire a crew that has no workers comp, your policy may be charged for their payroll, and you may be on the hook if one of them is hurt. Ask every sub for their own certificate before they start.
To get a rough feel for the cost with your own payroll and a rate you type in, try the workers comp estimator. The result is an estimate only; your agent’s quote is the real number. For the wider cost of a new hire, see the hiring and crews guide.
Commercial auto
Your trucks carry crews, haul chippers and park on busy streets. A personal auto policy may refuse a claim if the truck was used for business at the time. A commercial auto policy is built for work vehicles. When you talk to the agent, cover these points.
- Tell the agent every vehicle used for work, including the pickup you also drive home.
- Ask whether the policy covers a trailer while hitched and while parked on a job site.
- List every driver, including part-time and seasonal workers. Driving records affect the price.
- Ask about hired and non-owned auto cover if workers drive their own cars on company errands.
- Equipment mounted on a truck, such as a bucket or a crane, may need to be listed separately. Ask.
Inland marine and equipment cover
Your chipper, stump grinder and loader may be worth more than your trucks. General liability does not cover your own equipment. That is the job of an equipment policy, usually sold as inland marine.
What inland marine means
The name is old and confusing. In plain words, it covers property that moves around: tools and machines that go from job to job. A chipper parked at a customer’s house overnight is the kind of thing it is built for.
Make a list
Write down each machine with its make, model, serial number, year and what it would cost to replace. Take photos. This list makes buying the policy faster and makes a claim much easier.
Replacement cost or actual cash value
Replacement cost pays closer to the price of a new or similar machine. Actual cash value takes off for age and wear, so an older machine pays out less. Ask which one you are buying.
Rented and leased gear
If you rent a lift or a stump grinder, the rental contract may make you responsible for damage. Ask whether your policy covers rented equipment, or buy the rental company’s damage cover.
If you are deciding whether to buy a machine or keep renting, the equipment guide walks through the trade-offs, including insurance as part of the true cost of owning.
Other cover to ask about
Not every company needs these. Ask your agent which fit your work and your contracts.
Umbrella or excess liability
Adds limits on top of your general liability and auto policies. Useful when a contract asks for a higher limit than your base policy carries.
Pollution or fuel spill
A hydraulic line burst or a fuel spill on a customer’s driveway may not be covered by a standard policy. Ask.
Utility line work
Work near power lines carries special rules and training needs. Some policies exclude it. If you clear lines, make sure your training, the law in your state and your policy all line up.
Certificates of insurance
A certificate of insurance, often called a COI, is a one-page summary of your policies. It lists the insurer, the policy types, the limits and the dates. It proves you have cover on the day it was issued. It does not change or add to the policy.
Who asks for one
Property managers, HOAs, schools, churches, cities, general contractors and careful homeowners. Commercial work almost always needs one before you start. If you want more of that work, read the commercial accounts guide.
Checklist before you send a certificate
- The named insured matches your legal business name exactly.
- The policy dates are current and will not run out during the job.
- The types of cover and limits match what the customer or contract asked for.
- The certificate holder is the customer, with the right name and address.
- Additional insured is added only if the contract asks for it, and the policy allows it.
- The certificate comes from your agent or insurer, not edited by you.
- You keep a copy of every certificate you send, with the date and the job.
For a printable version you can tick off for each job, use the insurance certificate checklist. Never edit a certificate yourself. If something is wrong, ask your agent for a new one.
How to shop for a policy
Buying insurance once a year is easy to rush. A few hours of care can save you from a policy that does not pay when you need it.
1. Use an agent who knows tree work
An independent agent who already writes policies for tree companies will know which insurers accept the work and which exclude it. Ask how many tree service accounts they handle.
2. Describe your work honestly
Tell the agent about climbing, crane work, storm work, stump grinding and line clearance if you do them. A policy priced on a smaller job description may not pay when the real work causes a claim.
3. Get two or three quotes
Prices vary a lot by state, payroll, claims history and the type of work. We do not list typical prices because they change too much to be useful. Get written quotes and compare the cover, not only the price.
4. Compare the same things
Line up the limits, deductibles, exclusions and whether the policy covers tree removal and height work. A cheaper policy that excludes your main work is not cheaper.
5. Review every year
Add new trucks and machines as you buy them. Update payroll if you hire. Check that the limits still match the contracts you want to win.
Starting a new company? The starting a tree service guide puts insurance in order with licensing, equipment and your first customers.
Using your insurance to win jobs
Homeowners are often told to "hire someone insured." If you are, make it easy to see. That is honest marketing, and it builds trust before the first call.
- Say which cover you carry on your website and Google Business Profile, for example "general liability and workers comp." Only claim what is true and current.
- Offer a certificate on request, and send it fast. A same-day certificate can be the reason a property manager picks you.
- Do not post a full certificate with policy numbers on a public page. Share it with the customer who asks.
- Mention it in your missed-call text and call script when it fits: "We are fully insured and can send a certificate."
We build fast tree service websites and tune Google Business Profiles so details like this are easy to find. See our services and pricing, or ask for a free audit of how your company shows up online today. Lirevon is new and has no tree-service clients yet; first case studies are planned for December 2026.
Common questions
What insurance does a small tree service need?
Most need general liability, workers comp if they have employees, commercial auto for work trucks and equipment cover for machines. Some also add an umbrella policy. Your state rules and your contracts decide the exact list. This is general information, not insurance advice.
Is general liability enough on its own?
Usually not. General liability does not cover your own workers getting hurt, your trucks in a crash or your own equipment being stolen. Those need workers comp, commercial auto and equipment cover.
Do I need workers comp if it is just me?
It depends on your state. Many states do not require it for a sole owner with no employees, and some let owners opt in. Once you hire, most states require it. Check with your state workers comp board.
Will a landscaping policy cover tree removal?
Not always. Some landscaping and general contractor policies exclude tree removal or work above a set height. Ask your agent to confirm in writing that climbing, removal and rigging are covered.
What is a certificate of insurance?
It is a one-page form from your agent or insurer that shows your policies, limits and dates. It proves you have insurance but does not change the policy. Customers, cities and property managers often ask for one.
What does additional insured mean?
It adds another party, such as a property manager, to your policy for claims that come from your work for them. Commercial contracts often ask for it. Your agent adds it, and some policies charge for it.
How much does tree service insurance cost?
It varies widely by state, payroll, claims history, trucks, equipment and the type of work. We do not quote typical prices. Get two or three written quotes from agents who know tree work, and use the workers comp estimator as a rough starting point.
Do my subcontractors need their own insurance?
You should ask for it. If a sub has no workers comp or liability, your insurer may charge you for their payroll at audit time, and you may be exposed if something goes wrong. Collect their certificates before they start.
Can I say "fully insured" on my website?
Only if it is true and current. Many owners list the types of cover they carry and offer a certificate on request. Do not post a certificate image with policy numbers for anyone to copy; send it to the customer who asks.
Does my equipment policy cover rented machines?
Not always. Some equipment policies cover rented or borrowed machines up to a limit, others do not. Read the rental contract and ask your agent before you take the machine to a job.
Go deeper: the glossary explains general liability insurance, workers' compensation and certificate of insurance. Quick questions are in our answers library, and Lirevon for owner-operators shows how we help.
This page is general information, not insurance, legal or tax advice. Lirevon does not sell insurance. Rules and prices vary by state and insurer; speak to a licensed agent in your state.
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