Key Takeaways
- Always ask for proof of general liability and workman’s comp insurance
- Tree companies without insurance may leave you financially responsible
- Less than 15% of people performing tree work in the U.S. carry proper coverage
- A five-minute call to the insurance company could save you thousands
- Don’t assume a landscaping or lawncare company has the right coverage for tree work
Professional tree companies need to carry three different kinds of insurance: general liability, workman’s comp, and vehicle. As a homeowner or potential client, here’s why you should care about these.
General liability:
this is the one that protects you and your stuff. Real tree companies have experience, training, and very expensive equipment that is all the first line of defense against personal injury and property damage. Still, accidents happen, and in the very unlikely event that they do, you need a company with general liability insurance. This will pay for your new roof, your new garage, and even—God forbid—your hospital bills if something goes wrong during the job.
Workman’s comp:
this is the one that protects the employees of the tree company, and ultimately, your bank account. If an employee is injured on the job, workman’s comp insurance will pay their hospital bills, other medical expenses, and even lost wages as a result of the injury. As unfair as it seems, if there’s no workman’s comp insurance, that employee can come after YOU, the homeowner, to pay all those expenses. Additionally, it’s required by law in Michigan for companies to carry such a policy.
Vehicle:
This is the one that protects the company’s vehicles. Realistically, it’s very unlikely it would come back to bite you if you hired a company that doesn’t have vehicle insurance. However, just like it’s required by law for you to have insurance on your car, it’s required for companies to have insurance on theirs. If a company doesn’t, steer clear.
“But I can save some money if I hire a company that doesn’t have insurance.”
Yep—you can.
“But do I really need to worry about this? Surely all these companies have insurance, right?”
Companies that don’t have adequate insurance don’t often self report, so it’s difficult to have any solid data on this. However, the only studies that have ever attempted it suggest that about 11% of people who perform tree work in the US are properly insured. Yes, you read that right—11%. The other 89% includes your cousin who owns a ladder and a chainsaw. It includes “companies” who just don’t want to pay for insurance and instead cross their fingers and pray for the best. It includes landscaping companies, lawncare companies, and other contractors who have insurance for what they do, but would never receive a dime if their provider knew they were cutting down trees.
“Okay, so what can I do?”
First of all, request proof of insurance from any tree service you get a quote from. If they are unwilling or unable to provide this, they are not a real company. Second, call the insurance company. It’ll take five minutes and you can verify what kinds of insurance they have, how much money can be paid out in damages, and what types of work are actually covered. Here’s ours.
“But do I really need to worry about this? Surely all these companies have insurance, right?”
Companies that don’t have adequate insurance don’t often self report, so it’s difficult to have any solid data on this. However, the only studies that have ever attempted it suggest that about 11% of people who perform tree work in the US are properly insured. Yes, you read that right—11%. The other 89% includes your cousin who owns a ladder and a chainsaw. It includes “companies” who just don’t want to pay for insurance and instead cross their fingers and pray for the best. It includes landscaping companies, lawncare companies, and other contractors who have insurance for what they do, but would never receive a dime if their provider knew they were cutting down trees.
“Okay, so what can I do?”
First of all, request proof of insurance from any tree service you get a quote from. If they are unwilling or unable to provide this, they are not a real company. Second, call the insurance company. It’ll take five minutes and you can verify what kinds of insurance they have, how much money can be paid out in damages, and what types of work are actually covered. Here’s ours.
