Insurance Comparison
Bundled Insurance Package vs Separate Policies for Tree Services
Compare the pros and cons of purchasing a bundled Business Owner's Policy (BOP) or contractor's package versus buying individual policies for your tree service company.
| Dimension | Bundled Package (BOP/Contractor's Package) | Separate Individual Policies |
|---|---|---|
| Premium Cost | Typically 10-25% cheaper than buying equivalent coverages separately due to multi-policy bundling discounts. | Higher total cost when purchasing GL, property, inland marine, and auto from different carriers, but allows shopping each line for the best rate. |
| Coverage Customization | Limited ability to customize individual coverage parts. Package forms may not allow you to adjust sub-limits on specific coverages. | Full control over limits, deductibles, and endorsements on each policy. Can tailor each line to your exact risk profile. |
| Eligibility | Standard BOPs often exclude tree services due to the high-hazard classification (NCCI 0106). Contractor's packages may be available from specialty carriers. | No eligibility restrictions — you purchase each policy independently from whichever carrier will write it. |
| Coverage Gaps | Coverages are designed to work together under one form, reducing the risk of gaps between policies. | Risk of gaps between policies from different carriers — for example, a claim that falls between your GL and inland marine policies. |
| Claims Handling | Single carrier handles all claims, simplifying the process. One adjuster coordinates across coverage parts. | Multiple carriers means multiple adjusters. Disputes over which policy responds to a claim (e.g., auto vs GL for a roadside tree removal accident) can delay resolution. |
| Carrier Switching | Moving an entire package means finding a carrier that will write all lines. Losing one coverage line may force you to move the whole package. | Can switch individual policies independently. If your auto carrier raises rates 40%, you can move just auto without disrupting GL or property. |
| Inland Marine Coverage | Bundled packages may include $50,000-$100,000 in equipment floater coverage built in, but limits may be insufficient for stump grinders, chippers, and aerial lifts. | Standalone inland marine policies allow scheduling of individual equipment items — a $65,000 Vermeer chipper, a $45,000 stump grinder — with agreed-value coverage. |
| Administration | One renewal date, one billing cycle, one carrier relationship. Significantly less administrative burden. | Multiple renewal dates, multiple bills, multiple certificates of insurance. More time-consuming to manage. |
| Best For | Small to mid-size tree services (under $750,000 revenue) looking for simplicity and cost savings on standard coverage. | Larger tree services ($750,000+ revenue) with specialized equipment, multiple vehicles, and complex risk profiles requiring tailored coverage. |
Premium Cost
Bundled Package (BOP/Contractor's Package)
Typically 10-25% cheaper than buying equivalent coverages separately due to multi-policy bundling discounts.
Separate Individual Policies
Higher total cost when purchasing GL, property, inland marine, and auto from different carriers, but allows shopping each line for the best rate.
Coverage Customization
Bundled Package (BOP/Contractor's Package)
Limited ability to customize individual coverage parts. Package forms may not allow you to adjust sub-limits on specific coverages.
Separate Individual Policies
Full control over limits, deductibles, and endorsements on each policy. Can tailor each line to your exact risk profile.
Eligibility
Bundled Package (BOP/Contractor's Package)
Standard BOPs often exclude tree services due to the high-hazard classification (NCCI 0106). Contractor's packages may be available from specialty carriers.
Separate Individual Policies
No eligibility restrictions — you purchase each policy independently from whichever carrier will write it.
Coverage Gaps
Bundled Package (BOP/Contractor's Package)
Coverages are designed to work together under one form, reducing the risk of gaps between policies.
Separate Individual Policies
Risk of gaps between policies from different carriers — for example, a claim that falls between your GL and inland marine policies.
Claims Handling
Bundled Package (BOP/Contractor's Package)
Single carrier handles all claims, simplifying the process. One adjuster coordinates across coverage parts.
Separate Individual Policies
Multiple carriers means multiple adjusters. Disputes over which policy responds to a claim (e.g., auto vs GL for a roadside tree removal accident) can delay resolution.
Carrier Switching
Bundled Package (BOP/Contractor's Package)
Moving an entire package means finding a carrier that will write all lines. Losing one coverage line may force you to move the whole package.
Separate Individual Policies
Can switch individual policies independently. If your auto carrier raises rates 40%, you can move just auto without disrupting GL or property.
Inland Marine Coverage
Bundled Package (BOP/Contractor's Package)
Bundled packages may include $50,000-$100,000 in equipment floater coverage built in, but limits may be insufficient for stump grinders, chippers, and aerial lifts.
Separate Individual Policies
Standalone inland marine policies allow scheduling of individual equipment items — a $65,000 Vermeer chipper, a $45,000 stump grinder — with agreed-value coverage.
Administration
Bundled Package (BOP/Contractor's Package)
One renewal date, one billing cycle, one carrier relationship. Significantly less administrative burden.
Separate Individual Policies
Multiple renewal dates, multiple bills, multiple certificates of insurance. More time-consuming to manage.
Best For
Bundled Package (BOP/Contractor's Package)
Small to mid-size tree services (under $750,000 revenue) looking for simplicity and cost savings on standard coverage.
Separate Individual Policies
Larger tree services ($750,000+ revenue) with specialized equipment, multiple vehicles, and complex risk profiles requiring tailored coverage.
What Tree Service Companies Need to Know
Tree service companies typically need five to seven distinct coverage lines: general liability, commercial auto, inland marine (equipment floater), workers' compensation, property, umbrella/excess, and possibly professional liability or pollution liability for arborists. The question is whether to buy these as a bundled package or shop each line individually.
Bundled packages — whether a true Business Owner's Policy (BOP) or a contractor's package from a specialty carrier — offer convenience and savings. A contractor's package from a carrier like Acuity, EMC, or West Bend might bundle GL, property, inland marine, and commercial auto under one policy number with a single renewal date. The premium savings from bundling typically run 10-25% compared to purchasing the same coverages separately. For a tree service paying $15,000 per year across four coverage lines, that is $1,500 to $3,750 in savings.
However, standard BOPs are often unavailable to tree services. The ISO BOP eligibility rules exclude many contractor classifications, and NCCI class code 0106 (Tree Pruning, Trimming, Removal & Related Services) is considered high-hazard by most carriers. You will likely need a specialty contractor's package rather than an off-the-shelf BOP. Even then, bundled packages have limitations — equipment floater sub-limits of $50,000 to $100,000 may be inadequate if your fleet includes a $120,000 Altec aerial lift truck and a $65,000 Vermeer BC1800XL chipper.
The separate-policy approach gives you maximum flexibility. You can place GL with a carrier that specializes in tree service risks, inland marine with a carrier that offers agreed-value coverage on your specific equipment, and commercial auto with a carrier that understands your fleet of chip trucks and crane trucks. The downside is complexity: multiple renewal dates, multiple certificates of insurance, and the risk that two carriers point fingers at each other when a claim straddles coverage lines.
For most tree services under $750,000 in annual revenue with a straightforward operation, a contractor's package offers the best combination of value and simplicity. Once you grow beyond that — adding cranes, multiple crews, specialized consulting — the flexibility of separate policies becomes worth the extra administration.
Frequently Asked Questions
Can I get a BOP for my tree service company?
Standard BOPs from most carriers exclude tree services due to the high-hazard nature of the work. However, several specialty carriers offer contractor's packages that function similarly — bundling GL, property, and inland marine under one policy. Ask your agent about contractor-specific packages from carriers like Acuity, EMC, or specialty programs through managing general agents.
Will I lose my bundling discount if I need to add a policy from a different carrier?
Possibly. Some carriers reduce or eliminate the multi-policy discount if you remove a coverage line from the package. However, if you need a standalone inland marine policy because the package sub-limits are too low, the cost of proper equipment coverage usually outweighs the lost discount.
How do I handle certificates of insurance with multiple carriers?
You will need to request separate COIs from each carrier and may need to provide multiple certificates to clients. Some agents can issue a consolidated evidence of insurance letter, but the individual carriers still produce their own COIs. This is manageable but adds administrative time.
What happens if a claim involves two separate policies from different carriers?
This is called an 'other insurance' situation and can create disputes. For example, if a tree falls from your truck onto a parked car, both your commercial auto and GL carriers may argue the other is primary. Having all coverages with one carrier eliminates this finger-pointing. If you use separate carriers, make sure your agent reviews 'other insurance' clauses in each policy.