Don’t Sign That Insurance: Red Flags Your Tree Care Business Should Watch For

In our last blog, we covered the basics of tree care insurance you should know, and how to make the most of it. By now, you’ve probably spoken with different agencies and have a better picture of what’s available in the market.

But here’s what happens all too often: you think you’ve found the perfect insurance provider, until you actually read the fine print. We’ve seen countless tree service owners discover costly gaps in their coverage only after it’s too late.

In this article, we’ll show you exactly what warning signs to watch for that could leave your business exposed, and how to find coverage that truly fits your operation. No complicated jargon, just practical advice that might save your business someday.

Let’s dig in!

The Coverage Trap: When “Complete Coverage” Isn’t Complete

Your insurance agent might be friendly, but they’re not always telling you everything. These three policy problems consistently catch owners by surprise, but not if you know what to look for.

Height Restrictions and Aerial Work Exclusions

Ever wondered why your insurance seems surprisingly affordable? Check the height restrictions. Standard business policies for landscaping usually have 10-15 foot limits that make them useless for actual tree work.

Look out for these deal-breakers hiding in your policy:

• Blanket height restrictions that void coverage above certain heights
• Vague “3-story” limits without clear definitions
• Exclusions for ladder work or fall protection equipment

These restrictions are usually hidden deep in policy documents, where you might miss them during sign-up. Make sure you check before signing.

Inadequate Equipment Coverage Terms

That $50,000 chipper represents serious money, but your policy might treat it like a lawnmower. Standard tree care equipment coverage often falls short for tree service businesses.

Ask yourself:

• Does the policy specifically list specialized equipment like chippers and stump grinders?
• Are you getting actual cash value (depreciated) or full replacement cost?
• What happens when equipment gets damaged between job sites?

If these questions cannot be answered by the policy, ask the agent for specific terms. Adequate coverage should include replacement cost value, which can leave you short by 30-40% when replacing older equipment. Your policy should explicitly name specialized tree care equipment with appropriate values and cover your tools during transportation and storage (24/7 coverage).

Also, watch out for high deductibles that make smaller claims pointless. Usually $500-1,000 deductibles are standard, but anything higher significantly reduces the value of your coverage.

ArborNote’s work order tracking system helps you maintain detailed documentation of all your tools and machinery. This makes insurance claims smoother and ensures you have accurate records for replacement cost coverage, saving you thousands when filing claims.

Subcontractor Coverage Gaps

Hiring subcontractors? Your insurance policy needs specific subcontractor provisions to protect you. Many tree service owners learn this lesson the expensive way, often facing $50,000+ in unexpected liability claims.

Three critical gaps to check in your policy:

• Missing “action over” endorsements: this is a basic safety net. Without it, you’re exposed when subcontractors’ employees get injured and sue you
• The “we don’t cover subcontractors” trap: watch for exclusionary language stating like “this insurance doesn’t cover damage caused by subcontractors working for you”, this single line could leave you with $$$ in uncovered claims
• Lack of verification requirements: good policies actually tell you that you need to collect and keep proof that your subcontractors have their own insurance.

Keep an eye on the vague policy language about subcontractor responsibilities. Many denied claims in the tree care industry involve subcontractor work that insurers refuse to cover due to policy exclusions or unclear terms.

How to Find the Right Insurance Provider

Now that we’ve covered the red flags to watch for, let’s talk about finding an insurance provider that actually understands tree work and suits your business.

Industry-Specific vs. General Insurance Providers

We won’t tell you that you must choose providers specializing in tree care, but we highly recommend starting your search by consulting with agencies specializing in tree care.

The ideal insurance agents know the unique tree care risks and can suggest coverage options that general business insurers might miss. This gives you valuable baseline knowledge before exploring all options.

Key Factors	Tree Care Specialists	General Insurers
COI Proof Guarantee	Standard practice, tailored to tree service	Available but may need specific request
Industry Association	Often endorsed by TCIA/ISA	Limited or no tree care endorsements
Arborist Experience	Deep understanding of tree service risks	General knowledge, may miss specifics
Risk Management	Tree-specific safety training	Generic resources not tailored
Pricing	May be higher with appropriate coverage	Often lower, watch for exclusions
Bundling Options	Limited, focused on relevant coverage	Extensive with potential savings

The key is finding the right balance – industry specialists will arm you with knowledge, but general insurers may offer competitive rates. Start with arborist-specific agents to understand your needs, then compare all options.

Here are the critical factors to evaluate for any provider you consider:

• COI Proof Guarantee: ALWAYS get a Certificate of Insurance (COI) that clearly shows your coverage details. This document is crucial when clients ask for proof of insurance. Any good provider should offer this without you having to ask.
• Industry association backing: Providers that organizations like the Tree Care Industry Association (TCIA) or International Society of Arboriculture (ISA) recommend usually have deep knowledge of tree service risks
• Arborist-specific policy experience: Ask directly: “How many tree service companies do you insure?” and “What are the most common claims you see?” Their answers will tell you if they really know our business.
• Risk management resources: The best providers give you safety training materials and guidance about reducing risks in tree operations

Evaluate Claims Settlement Reputation

The true test of any insurance provider isn’t their sales pitch but how they actually handle claims. For tree care businesses, where claims can be complex and substantial, this is especially critical.

Before selecting an agency, research:

• Their average claim settlement timeline, specifically for tree service businesses
• Whether they provide advance payments for emergency equipment repairs
• Their history of litigation with clients in the tree care industry

Don’t just take their word for it. Ask: “Can you walk me through a real example of how you handled a complicated liability claim for a tree service company?” Then request to speak with tree care clients who’ve actually filed claims, not just their happiest customers.

Also don’t fall into the online reviews rabbit hole. They are useful but rarely tell the full story. Instead, call your local tree care association and ask which insurers have good reputations for claim handling.

The best provider isn’t necessarily the one with the fewest claims paid, it’s the one that pays fair claims quickly while helping you prevent fraudulent ones.

Questions to Ask Potential Insurance Agents

Still need more prepared questions that you can ask when consulting? We’ve got you!

Here are some key questions to ask before signing any policy to get proper coverage at fair rates:

These targeted questions will quickly reveal whether an agent truly understands arboriculture risks or is simply trying to sell generic policies. A knowledgeable agent will answer with specific examples and industry insights rather than vague assurances. Good luck with your search, and keep those chainsaws sharp and your coverage sharper!