How Much Does Tree Service Insurance Cost?
By TreeServiceInsure Team
One of the most common questions we hear from tree service owners is: how much is this going to cost me? The answer depends on several factors, but here's a realistic breakdown.
General liability insurance typically costs $2,000-$8,000 per year for tree service companies. The wide range reflects differences in revenue, crew size, services offered, and claims history. Companies doing primarily trimming work pay less than those doing large-scale removals near structures.
Workers' compensation is usually the most expensive policy, running $15-$40 per $100 of payroll. For a company with $300,000 in annual payroll, that's $45,000-$120,000. Your experience modification rate has a huge impact — companies with clean safety records pay significantly less.
Commercial auto insurance runs $3,000-$12,000 per year depending on fleet size, vehicle types, and driver records. Bucket trucks and heavy equipment cost more to insure than pickup trucks.
Businesses that need higher liability limits can add commercial umbrella insurance to extend their general liability and commercial auto coverage without buying entirely new policies.
Inland marine insurance (equipment coverage) typically costs $500-$3,000 per year based on the total value of your equipment. A chipper, stump grinder, and collection of chainsaws and rigging gear can easily represent $100,000+ in equipment value.
All told, a typical tree service company with 5-10 employees and $500,000-$1M in revenue should budget $15,000-$40,000 per year for a comprehensive insurance program. Larger companies with bigger crews and more equipment will pay more, while solo operators can often get started for $5,000-$10,000.
Costs also vary by service type. Stump grinding operations may pay less than full-service tree removal companies, while land clearing businesses face their own unique rate factors.
The key to getting the best rate is working with a specialist who understands tree service insurance and can shop multiple carriers on your behalf.