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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...