Let's talk insurance. Ever wonder what types of insurance a tree service should have? Read more to find out. Insurance protects the client, the worker, and the company. The tree care industry is not regulated. Insurance is not mandatory. As a result, do not assume every company is insured. Ask for proof to be sure.

Tree Service Insurance - Protecting Workers

Employees are protected by workers' compensation insurance. It pays for almost all costs associated with on the job injuries. Workers’ compensation insurance rates are based on the type of work. Therefore, there are hundreds of categories. Rates for dangerous jobs are higher. As a result, rates for tree climbers are very high. Obviously this increases operating costs. It is important for tree services to have workers’ compensation insurance. Otherwise, a client could be held responsible for injured workers and associated costs.

Tree Service Insurance - Protecting Property

Liability is defined as the state of being responsible for something. Especially by law. When working on a job, businesses are responsible for repairing accidental damages. Contractors are also responsible if bodily injury occurs. Of course, no one predicts accidents. However, liability insurance covers the cost to repair or fix accidents. Without liability insurance, the cost comes out of pocket. Liability insurance is important. First, it protects the client. Second, it protects the business.

What about Licenses & Bonding?

Businesses can purchase business licenses. A business license allows a company to legally conduct business in the area where they are licensed. Licenses are another layer of competency and legitimacy. Each area or jurisdiction has its own licensing requirements. The Fairfax County Government website states, "Permits and licenses are necessary to conduct business in the county."  Although this is a mandate, I doubt it is enforced frequently. If you want to know if a company is licensed, ask.

Some contracting companies are bonded. Companies can purchase bonds. They give customers a guarantee of performance on contractual liabilities. This is important for two reasons. First, if the contractor does not complete the job as proposed. Second, you cannot come to an amicable agreement. The bond covers the cost of the disagreement. Some licenses require bonds. Others do not. Usually companies that complete costly projects are bonded. We are not bonded. We make sure that our clients are always satisfied.

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Request a Certificate of Insurance (COI)

Businesses request certificates of insurance from their insurance company. They are provided to clients. The photo is a sample certificate of insurance. Do not be afraid to request a certificate of insurance. It is proof that a company has insurance to protect you, themselves, and their employees.

 

 

 

Find out technical definitions of all insurance vocabulary here.