Business Owners Policy (BOP)
Protect your tree service business with bop coverage designed for the unique risks you face.
At a Glance
Protect your tree service business with bop coverage designed for the unique risks you face.
- Core bop protection for tree service operations
- Coverage tailored to industry-specific risk exposures
- Legal defense costs for covered claims
- Protection for both field operations and office activities
What It Covers
Business Owners Policy (BOP) provides essential protection for tree service companies operating in a high-risk environment. This coverage addresses the specific exposures that tree care professionals face daily, from equipment-intensive field work to managing a mobile workforce across multiple job sites.
For tree service businesses, bop coverage is particularly important because the nature of your work creates unique risk exposures that standard business policies may not adequately address. The combination of heavy equipment, hazardous work conditions, and proximity to client property makes comprehensive coverage essential.
Why Tree Services Need It
Tree service companies face distinct challenges that make bop coverage a critical component of a complete insurance program. The physical demands of tree work, combined with the financial risks of operating a service business, create exposures that can threaten your company's survival if not properly insured.
Without adequate bop protection, a single incident could result in financial losses that exceed your ability to pay out of pocket. Many tree service companies have learned this lesson the hard way — don't let yours be one of them.
Typical Cost
$1,800-$5,500/year for a tree service BOP, which bundles GL ($1M/$2M) and commercial property into one policy at a 10-20% discount versus buying them separately. Solo operators and 2-person crews with $150K-$400K in revenue typically pay $1,800-$3,200/year. Small companies with 3-6 employees, a shop, and $500K-$800K revenue pay $3,500-$5,500/year. BOPs are generally not available for companies with revenue exceeding $3M — at that point, you need standalone policies.
Real-World Claim Example
A solo tree service operator in rural Missouri was pruning branches over a client's driveway when a 6-inch diameter limb fell and struck the client's parked Toyota Tundra, cracking the windshield, denting the hood, and scratching the driver's side door and fender. Repair estimate: $6,800. Two weeks later, while the GL portion of his BOP was handling that claim, a fire broke out in his detached shop building when a space heater ignited wood shavings and bar oil rags overnight. The fire destroyed his shop contents: a workbench and hand tools ($3,400), chainsaw sharpening equipment ($2,100), safety gear inventory ($1,800), and a computer with his business records ($1,200). The shop building sustained $28,000 in structural damage. The BOP handled both claims under one policy: the GL portion paid the $6,800 vehicle damage (minus no deductible for liability), and the property portion paid $36,500 for the shop repair and contents replacement (minus a $1,000 property deductible). The business interruption coverage included in the BOP also reimbursed $4,200 in lost income during the 3 weeks his shop was being rebuilt. Total payout across both claims: $47,500.
Industry Statistics
| Statistic |
|---|
| BOPs save small tree service companies 10-20% compared to purchasing standalone GL and property policies separately, averaging $600-$1,200 in annual premium savings (Independent Insurance Agents & Brokers of America 2024) |
| 67% of tree service companies with fewer than 5 employees and under $1M in revenue qualify for a BOP, but only 34% actually carry one — the remainder either have no coverage or overpay for standalone policies (NAIC Small Business Insurance Survey 2024) |
| Small tree service companies (under $500K revenue) that carry a BOP are 4x more likely to survive a major property loss or liability claim than those without coverage (SBA Small Business Resilience Report 2024) |
| The average BOP claim for a landscaping/tree service business is $18,500, with property damage to client vehicles and structures being the most frequent trigger (Nationwide Small Business Claims Report 2023) |
Pro Tip
A BOP is often the most cost-effective entry point for new tree service companies, but you need to understand its limits. BOPs cap at specific revenue and employee thresholds — typically $3M revenue and 25 employees — and they do not include workers' comp, commercial auto, or inland marine. Think of a BOP as the foundation, not the whole program. Also, most BOP policies include a small amount of business interruption coverage (often 12 months of income replacement) at no additional cost — this is a huge bonus that you would pay $400-$800/year for as a standalone policy. When comparing BOP quotes, check the business interruption limit carefully: some carriers cap it at $250,000 while others offer $500,000. For a tree service clearing $300,000/year in revenue, the higher limit is worth the slightly higher premium.
Common Exclusions
This policy typically does not cover:
- Workers' compensation — always requires a separate policy, even in a BOP
- Commercial auto and vehicle liability — your trucks, trailers, and fleet need a standalone commercial auto policy
- Professional liability (E&O) for consulting or tree health assessments — not included in standard BOPs
- Equipment away from your premises — tools at job sites and in transit need inland marine coverage
- Flood and earthquake damage — requires separate specialized policies regardless of your BOP
Need BOP coverage?
Get a free quote from a tree service insurance specialist.
What's Included
- Core bop protection for tree service operations
- Coverage tailored to industry-specific risk exposures
- Legal defense costs for covered claims
- Protection for both field operations and office activities
- Flexible limits to match your business size
- Certificate of insurance for client requirements
Cost Factors
- Annual revenue and business size
- Number of employees and subcontractors
- Types of tree services offered
- Claims history and risk management practices
- Coverage limits and deductible selections
- Geographic location and local risk factors
Get BOP in Your State
Find business owners policy (bop)coverage tailored to your state's requirements and risks.
Frequently Asked Questions
Common Questions
How do I get insurance for my tree service company?
Contact an independent insurance agent or broker who specializes in tree care or contractor insurance. They will assess your operations, obtain quotes from multiple carriers, and help you build a coverage package tailored to tree service risks.
Can I get tree service insurance with no experience?
Yes, but it is more difficult and more expensive. Many standard carriers require two to three years of experience, so new tree service companies often start in the E&S (excess and surplus) market. Having ISA certification, TCIA training, or prior employment experience in tree care can help you qualify for better rates.
What is a surety bond and do tree services need one?
A surety bond is a three-party agreement guaranteeing that your tree service will fulfill its contractual or regulatory obligations. Many states and municipalities require surety bonds for licensed tree service contractors, and some commercial clients require performance bonds for large projects.
How can I lower my tree service insurance premiums?
Lower premiums by maintaining a clean claims history, reducing your EMR through safety programs, bundling policies with one carrier, increasing deductibles, pursuing ISA certification and TCIA accreditation, and working with a broker who specializes in tree service insurance to shop the market annually.
Does my tree service company need cyber insurance?
Most tree service companies should consider cyber insurance if they store customer data, process credit card payments, use cloud-based scheduling or CRM software, or have employees whose personal information is stored digitally. Premiums for small operations typically range from $500 to $2,000 per year.
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