(800) 869-8643


Bonds for Tree Trimmers

Bonds for Tree Trimmers

Tree trimming can be dangerous business: the heights required and power equipment used add layers of peril that aren’t contemplated in other types of businesses.  Luckily, general liability, workers compensation, automobile liability and other policies are available to cover these dangers. Many customers of tree trimmers/arborists require additional coverage beyond these insurance policies.  That’s because in the contracting business, customers understand there is a risk that the contractor won’t meet the obligations of the contract.  This type of risk – risk faced by the customer – is covered by bonds. Bonds keep a tree trimming business running smoothly.  These bonds don’t have to be expensive or complicated.  But we commonly hear the question: “If I’ve already got the basic business insurances covered, why would I need a bond?” The State Won’t Give You a License Without One You may not be able to get a contractor license from the state in which you do business without a contractor license bond, also known as a performance bond.  These are required in some states in order to license a contractor and ensure that the contractor will provide ethical services in a professional manner by complying with all laws and ordinances, regulations and standards that apply to the business activity being licensed. California requires a contractor license bond for all active licenses, current licenses and reactivation of licenses.  For a comprehensive list of licensing requirements for all 50 states, click here. FAQ Who are the parties to the bond?  You (the contractor), the state licensing board (the obligee) and the insurance company issuing the bond (the surety).  The bond is filed with the contractor licensing...

The Difference Between Bonds And Commercial Liability

A bond is in fact different from commercial liability insurance primarily because of who is protected.  You should also note that a bond covers only for specific obligations, unlike liability insurance which is a broader form of coverage against a range of liabilities.   Insurance Protects You, Bonds Protect Your Client Commercial liability insurance is purchased by you the business owner, and it protects you and your business, in the event of a claim.  The insurer will cover your costs based on determining the value of a claim and paying a claimant, or by providing legal representation to your company in the event of a lawsuit. A bond is purchased by you the business owner, but it protects your contractor or client, in the event you fail to meet your obligations to the client. The surety or guarantor (the insurance company issuing the bond) agrees to pay the obligee (the party who is the recipient of an obligation) if the principal (the primary party who will perform the contractual obligation – that’s you) fails to meet your obligations under the contract with the obligee.   Understanding The Scopes of Coverage Commercial liability insurance covers for a wide range of potential incidents, including bodily injury and property damage on your premises or on a job site.  For a full list of coverage types, check out our Insurance Coverage page or contact our team. A bond covers contractual obligations only, and does not cover for any type of personal injury or property damage as a result of those obligations. There are many different types of bonds, the most common being a surety bond.  This...