Your crew works at heights with chainsaws and heavy machinery near clients' homes. Six insurance types protect you when things go wrong, and we've detailed what you need for each one below.
What Insurance Do You Need For a Tree Service Business?
Arborists and tree service businesses need general liability, workers' comp, commercial auto and professional liability insurance for full protection.
Get matched to the best business insurance companies for arborists below.
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Updated: November 17, 2025
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Tree Service Business Insurance Requirements: Key Takeaways
General liability insurance is the most critical coverage for tree service businesses due to frequent water damage claims and commercial client requirements. (Read More)
Tree service businesses commonly require workers' compensation, general liability and commercial auto insurance mandated by state law or client contracts. (Read More)
Arborists should consider tools and equipment insurance, professional liability and commercial umbrella insurance for optional coverage types.
To ensure compliance, request certificates from your insurer, verify coverage matches client requirements and update parties before policies expire. (Read More)
What Insurance Types Are Needed For a Tree Service Business?
Covers third-party claims for bodily injury and property damage caused by tree service operations, protecting your business when falling branches damage client property or equipment injures bystanders. | $2 million per occurrence and $4 million aggregate for most tree service businesses, with higher limits needed for large commercial projects. | While removing a 60-foot oak, a miscalculated fall caused the trunk to crash through a homeowner's sunroom, destroying $45,000 in structural components and furniture plus damaging the neighbor's fence and shed for $8,500. General liability covered the full $53,500 in property damage plus $12,000 in legal fees. | |
Required by law in most states once you hire employees, covering medical expenses and lost wages when crew members suffer job-related injuries from falls, chainsaw accidents, chipper injuries or falling limbs. | Coverage amounts are set by state law based on payroll, with tree service workers classified as high-risk at rates between $15 to $25 per $100 of payroll. | A climber fell 35 feet when his safety harness failed, suffering a fractured spine, broken pelvis and internal injuries requiring $340,000 in medical bills and $45,000 in lost wages. Workers' comp covered the entire $385,000 and provided disability benefits, protecting both the worker and business owner from a lawsuit. | |
Legally required in 49 states for business-owned trucks, chippers and equipment trailers, covering liability and damage when your vehicles are involved in accidents. | $1 million combined single limit with comprehensive and collision coverage, though some commercial clients require $2 million for vehicles hauling chippers or boom trucks. | A crew truck towing a $28,000 wood chipper ran a stop sign and collided with an SUV, causing $67,000 in medical bills, $31,000 for the totaled SUV, $28,000 for the destroyed chipper, $19,000 in truck repairs and $9,000 in traffic signal damage. Commercial auto covered all $154,000 after a $1,000 deductible. | |
Covers chainsaws, chippers, stump grinders, climbing gear and rigging equipment when damaged, stolen or broken down on job sites or in transit. | $50,000 to $150,000 in coverage depending on equipment value and fleet size. | Thieves stole a $35,000 stump grinder, chainsaws worth $2,800, climbing gear valued at $4,200, rigging equipment worth $3,500 and hand tools totaling $1,500, forcing the crew to turn away $18,000 in jobs over 10 days. Equipment insurance reimbursed $47,000 within a week, allowing the business to purchase replacements and resume operations. | |
Protects tree service businesses when clients claim your tree assessment, pruning recommendations or care advice caused financial losses. | $1 million per claim and $2 million aggregate for most arborists, with large commercial consulting requiring $2 million to $3 million. | An ISA-certified arborist recommended aggressive crown reduction for a century-old heritage oak instead of removal, but the tree died within six months from pruning stress. The property owner's landscape architect valued the specimen at $180,000 and sued for negligent advice, with professional liability covering $34,000 in legal defense and the $180,000 settlement. | |
Tree Service Business Insurance Requirements
Tree service companies must meet insurance requirements mandated by state law, municipal regulations and commercial contracts. Requirements vary by state and client type, with penalties for non-compliance including fines, license suspension and personal liability.
Workers' Compensation Insurance | Required by law in 49 states once you hire your first employee, with penalties including fines up to $10,000 per employee, criminal charges, license suspension and personal liability for all injury costs. Texas is the only state where workers' comp is optional, though tree services still need coverage for government contracts. | Minimum coverage amounts are set by state law based on payroll. Tree service workers fall into high-risk classifications with rates between $15 to $25 per $100 of payroll, and policies must specifically cover tree work rather than general landscaping. |
General Liability Insurance | Required by commercial property managers, municipalities, homeowners associations and high-value residential clients before tree service work begins. Many cities require proof of general liability for business licensing, and Florida mandates minimum $500,000 coverage for tree service company registration. | Standard contracts require $1 million per occurrence and $2 million aggregate. Municipal contracts and luxury estates commonly require $2 million per occurrence or $3 million to $5 million total coverage with the municipality named as additional insured. |
Commercial Auto Insurance | Required by law in 49 states for business-owned trucks, chippers and equipment trailers. Personal auto policies exclude commercial use and violate state requirements, leaving you personally liable for accident costs. | State minimums range from 25/50/10 to 30/60/25 split limits. Tree service contracts typically require $1 million combined single limit due to expensive equipment being transported, with some commercial clients requiring $2 million for vehicles hauling chippers or boom trucks. |
Required by municipal contracts, government agencies and institutional properties to guarantee contract completion and protect against employee theft or intentional damage. Oregon requires tree services to be bonded for state contractor registration. | Bond amounts range from $10,000 to $25,000 for residential work, $25,000 to $50,000 for municipal contracts and $50,000 to $100,000 for large institutional or multi-year government contracts. | |
Required by luxury estates, large commercial property managers and municipal contracts when liability exposure exceeds standard general liability limits. Premium clients mandate umbrella coverage as a contract condition before authorizing tree work. | High-value clients require $3 million to $5 million in total coverage, necessitating $2 million to $4 million in umbrella above your base general liability policy. Luxury estates may require $5 million to $10 million total. | |
How To Ensure Tree Service Business Insurance Requirements Are Met
Getting insured is one thing. Proving it to every client, keeping certificates current and updating dozens of property managers when policies renew? That's the real work. Here's how to handle it.
- 1Request Certificates of Insurance from your insurer
Contact your insurance provider after purchasing policies to request separate Certificates of Insurance for general liability, workers' compensation and commercial auto coverage. Tree service businesses working across multiple cities need individual COIs for each municipality's registry, as Seattle, Portland and many cities maintain approved provider lists requiring current certificates on file.
- 2Compare your coverage against each client's requirements
Review your signed contracts and compare your COI limits against what each client requires before scheduling work. Your $1 million general liability policy may satisfy residential clients, but commercial property managers often require $2 million per occurrence and city forestry departments require $3 million total coverage to bid on municipal contracts.
- 3Add property owners and municipalities as additional insured
Call your insurer to name specific clients as additional insured on your general liability policy before your crew arrives on site. Municipal contracts require ISO form CG 2012 or CG 2026 with primary and non-contributory language, and adding each additional insured costs $25 to $100, so factor endorsement fees into project bids.
- 4Submit proof to clients before tree work begins
Email COIs to commercial property managers at least 48 hours before scheduled tree removal, to city forestry departments when registering as an approved provider and to landlords before signing equipment yard leases. Arborists lose emergency storm work when they can't produce current COIs immediately, so keep digital copies on your phone ready to send from job sites.
- 5Update all parties before policies expire
Set reminders 60 days before each policy renewal to get fresh COIs from your insurer, then immediately email updated certificates to every active client. Tree service businesses discover their April policy renewal disrupts May and June jobs when commercial clients halt scheduled work because the COI on file shows an expired coverage date, costing prime-season revenue.
Get Business Insurance You Need For Your Tree Service Business
You can get matched to specialized arborist insurance providers using our tool below. Compare quotes from multiple insurers experienced with high-risk tree care coverage, research costs for your crew size and review each provider's claims handling before choosing your policy.
Get Matched To The Best Tree Service Business Insurer For Your Needs
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About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.