Why Every Tree Care Company Needs an Umbrella Policy

Written by Eric Petersen, CIC

At ArboRisk, we often say that running a tree care company means managing risk in three directions at once: up, down, and sideways. You protect your people, your clients, and your business from hazards that show up both on the jobsite and long after the work is done.

One of the most important, and most overlooked, tools for protecting the future of your company is an umbrella or excess liability policy. If you’ve ever wondered whether your business really needs one, the short answer is simple:

Yes. You do. Absolutely.

Here’s why.

Tree Work Has a High “Worst-Case Scenario” Potential

You already know tree care isn’t a low-risk industry. Your crews operate heavy machinery, climb high into the canopy, work near homes and power lines, and deal with unpredictable natural forces. The unfortunate truth is that even well-run companies can face incidents with massive financial consequences.

A serious injury, a dropped limb on a house, a multi-car accident involving your chip truck, or a single chainsaw injury can trigger claims well above the limits of your general liability, auto liability, or workers’ comp policies.

Umbrella policies are what catch you when the unexpected free-fall happens.

Your Primary Policies Only Take You So Far

Most tree care companies carry the standard limits:

• $1 million General Liability

• $1 million Auto Liability

• $1 million Employer’s Liability

When things go wrong, these limits can evaporate instantly. Lawsuits today escalate quickly, medical costs continue to climb, and juries are increasingly sympathetic to large settlements.

Umbrella policies step in after your primary policy limits are exhausted, giving you an extra $1 million, $2 million, $5 million, or more in protection.

Without it, the gap becomes your responsibility.

A Single Claim Can Threaten the Entire Business

Many owners assume catastrophic claims happen to “other companies.” But year after year, we see tree services, good companies, well-run crews, hit with:

• Seven-figure property damage losses

• Auto accidents involving multiple injured parties

• Severe bodily injury claims

• Lawsuits that drag on for years

Without umbrella coverage, these situations can:

• Wipe out cash reserves

• Force owners to sell equipment

• Damage reputation and client trust

• Put long-term contracts at risk

• Shut down the business entirely

Your company has worked hard to build a strong foundation. Umbrella coverage exists to keep it standing no matter what comes your way.

It’s the Most Cost-Effective Liability Protection You Can Buy

One of the biggest misconceptions about umbrella policies is that they’re expensive. The reality is the opposite.

Umbrella coverage is usually the most affordable insurance dollar you’ll ever spend.

Compared to the protection it provides, annual costs are shockingly low, especially “per million” of additional coverage.

Think of umbrella insurance as the seatbelt-and-airbag combination for your business:
You hope you never need it, but if you do, it’s the only thing that prevents disaster.

Clients, Municipalities, and Vendors Are Increasingly Requiring It

If you do commercial, municipal, or utility work, you’ve probably noticed a shift: more contract managers are requiring higher liability limits than ever before.

An umbrella policy:

• Meets contract requirements

• Keeps you competitive on bids

• Signals professionalism and reliability

• Shows that you take risk seriously

Companies without an umbrella policy are getting left out of bigger opportunities.

Umbrella Coverage Protects the Business You’re Working Hard to Build

You invest in training, gear, equipment, safety culture, and your people—because they matter. Umbrella coverage is simply an extension of that philosophy.

It protects:

• Your employees

• Your customers

• Your assets

• Your reputation

• Your future

At ArboRisk, we view umbrella insurance as foundational, not optional. It’s one of the strongest tools you have for taking control of your risk and securing long-term stability for your company.

Final Thought: Control the Controllable

You can’t control the weather. You can’t control tree biology. You can’t control every driver on the road. But you can control how well your business is protected when the unexpected happens. An umbrella policy gives you the peace of mind that one bad day won’t define your company’s future. It keeps your focus where it should be: building a safer, stronger, more profitable tree service.

If you have any questions about umbrella coverage, reach out to an ArboRisk team member today for a FREE Insurance Coverage Review.