Underwriting

Underwriting is the behind-the-scenes evaluation that determines whether a carrier will insure your tree service company and how much you will pay. An underwriter reviews your application, loss runs, revenue, payroll, number of employees, types of work performed, equipment list, safety programs, and geographic territory. Based on this analysis, they assign a risk grade, select the appropriate rate, and decide on any coverage restrictions or exclusions.

Tree service companies are considered high-hazard risks by most underwriters, which is why you often land in the E&S (excess and surplus lines) market rather than with standard admitted carriers. Underwriters scrutinize several factors unique to your industry: do you perform crane-assisted removals, do you work near power lines, do you apply chemicals, what is your average job height, and do you subcontract work out? Each "yes" answer increases the perceived risk and influences pricing.

Your loss history is the single most influential underwriting factor. An underwriter will request three to five years of loss runs from your prior carriers. Frequent claims — even small ones — signal poor risk management and result in higher premiums, restrictive endorsements, or outright declinations. This is why managing small claims carefully and investing in safety training pays dividends at renewal.

To improve your underwriting profile, document everything: formal safety programs, employee certifications (ISA Certified Arborist, TCIA accreditation), equipment maintenance logs, and written operational procedures. Underwriters respond favorably to businesses that demonstrate proactive risk management. Your agent can help you package this information into a "submission" that presents your company in the best possible light.