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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...
Tree Trimmers Liability Insurance

Tree Trimmers Liability Insurance

When you spend all day working up in trees there is a lot to consider, from your equipment to your employees to your professional reputation. What about what belongs to others? Your livelihood can be ruined by personal injury and property damage claims. Your reputation can be damaged by accidental errors. The two main types of liability insurance you should take into consideration when looking for coverage for your tree trimming business are general liability and professional liability (errors & omissions). General liability protects others and professional liability protects your business. Common Questions You Should Be Asking: What limits of coverage should you purchase for your business? The short answer is: as much as you can reasonably afford. When trying to determine adequate limits of coverage you should take into consideration the types of property you are working on or near (commercial property, high value homes, high income areas with expensive vehicles). Discuss with your agent the typical payout on a claim in your area and how much coverage you might need to protect yourself. Is general liability enough? Not always. Most tree trimmers coverage packages also include professional liability to cover other types of accidents. General Liability for Tree Trimmers General liability insurance covers your business for accidental damage to the property of others, as well as accidental injury to others. Coverage is included for these types of accidents: A branch being trimmed from a tree falls on a parked car belonging to the patron of a shop across the street. (Property damage) Tree trimmings on the sidewalk cause a jogger passing by to trip and fall and...