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.

Preventing Fire and Theft Losses in Tree Care

Written by Eric Petersen, CIC

At ArboRisk, we talk a lot about controlling your risk. In tree care, there are plenty of things outside your control, like weather, customer expectations, and daily surprises on the jobsite. But when it comes to preventing equipment fires and theft losses, you do have the power to dramatically reduce your risk.

Well-maintained, secure equipment doesn’t just prevent costly insurance claims. It keeps your crews safe, minimizes downtime, and strengthens your reputation for professionalism. Below are the core practices we encourage every tree care company to build into their routine.

1. Clean and Inspect Equipment Regularly

A clean machine is a safe machine. Sawdust, chips, grease, and fuel residue build up fast, and all of it becomes fuel when heat or sparks enter the equation. Regular cleaning also exposes developing issues before they turn into failures.

ArboRisk Tip: Build equipment cleaning into your daily shutdown routine. A few minutes spent blowing out a chipper or wiping down a saw can prevent hours of downtime or worse; a total fire loss.

Key actions:

• Clean saws, chippers, and grinders after every shift

• Remove debris from engine compartments

• Conduct quick visual inspections daily, with documented inspections weekly

• Train crew leaders on what “not quite right” looks like

2. Replace Worn or Damaged Components Promptly

“Run it until it breaks” is not a profitable strategy. Worn parts create heat, cause breakdowns, and can spark fires; especially in high-load, high-friction operations like chipping and griding.

ArboRisk Tip: Empower your team to tag equipment out of service when they find damage. A culture where people feel safe speaking up leads to fewer losses.

Replace immediately if you see:

• Frayed or cracked hoses

• Leaking fuel or hydraulic systems

• Worn bearings or belts

• Exposed or damaged wiring

• Loose, missing, or damaged fasteners

3. Follow Manufacturer Lubrication Recommendations

Lubrication isn’t a suggestion; it’s a risk-control tool. Proper lubrication reduces friction, prevents overheating, and extends the lifespan of your equipment.

ArboRisk Tip: Create lubrication schedules for each machine and post them where crews store the equipment. Consistency wins.

Best practices:

• Use the exact lubricants specified by the manufacturer

• Maintain a lubrication log

• Train crews on proper lubrication points and intervals

• Tag machines when lubrication is overdue

4. Keep Fire Extinguishers Accessible and Maintained

Even with strong prevention practices, things happen. A functioning fire extinguisher can turn a potential claim into only a minor incident if your crews can access it quickly and know how to use it.

ArboRisk Tip: Perform a quick “extinguisher check” every Monday morning. Make it a habit, and you’ll never have an empty or expired unit when it matters.

Ensure that:

• Every truck and major piece of equipment has a properly rated extinguisher

• Extinguishers are inspected monthly and serviced annually

• Crews practice using expired extinguishers so they’re comfortable under pressure

5. Store Tools and Equipment Securely

Theft is one of the fastest growing sources of equipment losses in tree care, often happening at night or when tools are left on an unsecured jobsite.

ArboRisk Tip: Assume that if it’s not locked, it’s not safe. Thieves look for easy opportunities, so don’t give them one.

Reduce theft risk by:

• Locking trailers, job boxes, and equipment whenever not in use

• Securing your yard with good lighting, cameras, and fencing

• Parking high-value equipment inside or behind locked gates

• Storing all keys in a secure, centralized location

• Avoiding leaving equipment onsite overnight

Every dollar you invest in equipment maintenance and security pays you back in fewer breakdowns, fewer claims, and fewer scheduling disruptions. More importantly, it helps support the safety culture that you’re already trying to improve upon. 

For more help with equipment safety ideas, reach out to an ArboRisk team member today or sign up for our Thrive Safety Risk Management Package today.

Smarter Sales Process = Less Risk

Written by Eric Petersen, CIC

One of my favorite aspects of TCIA’s Winter Management Conference is the ability to meet and connect with the amazing people of the tree care industry and this past February was no exception. I was honored to meet Jeff Wraley of Groundwork and began a dialogue on how a tree service could utilize technology to improve their sales process and drastically reduce the risk that their team faces every day. 

After meeting each other at the conference, Jeff and I connected on a handful of occasions to learn even more about each other’s services which led us to recording a ½ hour podcast together as well. You can check out that here. 

The majority of our conversation revolved around how a tree service could reduce their risk by implementing a streamlined sales process that helped identify the specifics of projects before a sales person even got to the property. 

Think about your sales process for a moment. How many jobs/projects do you or your sales people go out to visit each day that really don’t fit your company’s sweet spot or don’t really need a salesperson to see? If you are like most tree services, there are likely a lot of jobs that fit in those descriptions.

This is where our conversation got interesting, because one of the largest risks to a tree service comes from driving to and from the job site. In fact 38% of the claims that our insured tree services file comes from auto accidents! If your company can reduce the travel time for estimates, you will be reducing the number of hours on the road thereby reducing the chance of getting in an accident. In addition you also will be reducing the wasted fuel costs and time spent chasing projects that won’t fit your company. 

For those of you who have followed ArboRisk for a while, you know that I firmly believe sales and marketing are a vital part of risk management and my conversation with Jeff solidifies that even further. 

I strongly encourage you to watch the video that Jeff and I recorded and think about how you can streamline your sales process and at the same time reduce the risk to your organization.

If you are struggling with your Sales and Marketing, reach out to an ArboRisk team member today to begin our Thrive Sales & Marketing Package.

Positive Risks

Written by Eric Petersen, CIC

I felt inspired to write this article on the plane ride home from a recent trip to Egypt that my wife and I took for our anniversary. It was an unforgettable adventure where we crawled into pyramids and ancient tombs, slept under the stars on the Nile in a felucca as well as overnighted on a sleeper train, not to mention enjoyed the traditional cuisine of the country. It really was a trip that had it all and not one that we normally would take. Sure we like to travel to see new places, try new foods and such, but there was so much more unknown about this trip than any we had taken before.

In every sense of the phrase, we “took a risk” on this vacation of unknowns to experience something we hadn’t before and I’m so glad we did. Not only were the physical experiences so memorable, the conversations we had with our new friends reinvigorated us to continue to take risks and grow as individuals and share new ideas and energy with others.

Could it have been the worst trip we took? With everything that we didn’t know about the country, culture, the food, the people we were traveling with, absolutely, but it wasn’t and we obviously wouldn’t have had the time we did if we didn’t take the risk. It’s easy to confidently say that our risk paid off with this vacation.

It’s this spirit of positive risk taking that I want to bring back to your business now. I’m sure every tree care company owner knows the moment he or she wanted to start their own company. So, think about that moment for a second. The moment you knew you had to do this for yourself, your family or future family. You were staring risk directly in the face, with the potential of that risk slapping you back in the face at every turn. And while it maybe took a bit to build up the courage to take the leap, you did it anyway and you made it.

There would be no one to write this article to if no one took that risk to start their own business. And so I want to encourage each one of you to remember that we need to continue to take risks for our businesses and more importantly for the people our business depends on to thrive, our family, our employees and their families, our customers and their businesses/families.

So I challenge each of you to take a risk this year within your business. Go reach for that one thing you’ve been holding back on, starting a PHC department, opening an additional location, spending the money on marketing, investing in a customer relation management system? Whatever it is, work with your leadership team to build a plan first, and then take action.

Once you start, tell someone outside of your organization about it to hold you accountable. The accountability part is where we often fail as business owners as there is always something else that occupies our time and distracts us from taking risks that can transform our businesses. Remember, we used to do this when we were new in business.

And in that vein, I want to make a public commitment to you, so you can hold me accountable to my next risk, of writing a business building book for the tree care industry within the next year. I’ve had the outline set for a couple of years now, but haven’t taken the risk to truly begin working on it yet. But now it’s go time.

Join me in tackling something new for your business this year and please hold me accountable too. Together we can all improve so much faster than doing it alone.

Subcontractors and Work Comp

Written by Eric Petersen, CIC

Using subcontractors for some or all of your labor within your tree care company can be a smart strategic move for your business, however, it must be done correctly to avoid opening your company up to unnecessary exposures. While there are many exposures that tree care companies face with subcontractors, I want to focus this article only on the exposure that comes from an on-the-job injury to the subcontractor as it seems to be a misunderstood exposure that we often need to educate tree care company owners on.

You got it, this means we’re gonna talk about Workers’ Compensation and how it relates to subcontractors.

First thing first, everything that happens on a jobsite will flow upwards to the company that has the contract with the customer. On a typical tree care job that means the tree care company who is hired by the customer has the ultimate liability for what happens on that job including being responsible for any on-the-job injures.

While many tree care companies mishandle on-the-job injuries for their employees, it is often even worse when a subcontractor gets injured. Fortunately there is a pretty easy solution. I suggest doing all four of the items below, however, if you want to shortcut to #4, that is ultimately the one that matters the most.

1. State Law – Understand your state’s law on who qualifies as an independent contractor (subcontractor) and who will be viewed as an employee for an on-the-job injury. Most states have very similar rules on this and to oversimplify them (please, please, please check with your individual state directly to confirm this generalization), the question comes down to the amount of control the tree service has over the subcontractor. The more control the tree service has over the subcontractor, the less likely they will be viewed as a subcontractor. If they are injured and subsequently determined to not have met the criteria to qualify as a subcontractor, then the tree service will be responsible financially for the injury.
2. Workers’ Compensation – Make sure you have a work comp policy in force. If for some reason you or the subcontractor failed to ensure that the subcontractor met all of the requirements of your state to be viewed as a subcontractor then by having a policy in force, your Work Comp policy will pay for their on-the-job injury instead of you paying for it out of pocket.
3. Contract – Use a written contract with each subcontractor to outline the term of the business relationship and the required insurance policies that you want the subcontractor to possess. Unfortunately, this is a step that many tree services miss and therefore expose their business to paying for an on-the-job injury to a subcontractor.
4. Subcontractor’s Workers’ Compensation Policy – Get a copy of the subcontractor’s work comp policy (or Certificate of Insurance) before they step onto a jobsite for you. The key here is to get confirmation of their coverage BEFORE they start working with your team.

The last thing that I want to mention has to do with minimizing the issue with your Work Comp Audit if/when your subcontractors show up on the audit.

Remember, the ultimate cost of your Work Comp policy for the year is determined after the end of the policy reflecting the amount of payroll you had during the policy period. To determine the ultimate cost, the insurance company performs an audit and asks you to reconcile the premium that you’ve paid versus what is owed. If you had more payroll than estimated, you will owe more premium to the insurance company after the audit is completed. This becomes an issue when subcontractors are included in the payroll figure when they shouldn’t be.

Understanding and adhering to the four points above will remove the financial exposure created from on-the-job injury to a subcontractor.

If you would like more guidance on this topic or what the other exposures of subcontractors are to your business, reach out to an ArboRisk team member today.

How to Maximize A Loss Control Visit

Written by Eric Petersen, CIC

What feeling do you get when you learn that your insurance company wants to do a loss control visit with your tree care company? Hopefully a loss control visit would be met with high expectations of a collaborative relationship between your organization and the insurance company, however, we’ve found that most tree care owners are skeptical and even worried about what will happen during the visit. These feelings of skepticism and worry are completely normal and why I wanted to write this article.  

First, let’s talk about what a loss control visit  really is and why the insurance company would want to perform one. Simply put, a loss control visit is a meeting between a tree care company and the insurance company to learn more about the tree care company. The majority of the time this is an in-person meeting that happens at the office or shop of the tree care company and might continue in the field at one or two job sites. Loss control visits could also be done over the phone in certain circumstances. 

There are a few different reasons for the visit, but the underlying theme is to help the tree care company reduce the risk of injuries and accidents within their company. They also can be utilized by the insurance company to help in pricing of the insurance policy and where to guide the tree service for improvement. Sometimes the visit is set up before the insurance company even issues a quote for coverage or after you’ve had a large accident or claim. 

Unfortunately, most people have heard a  story or experienced a loss control visit that wasn’t productive or collaborative which has lead to the common skepticism and worry about these visits. Too often, these visits can be pencil whipping check box visits where the loss control rep is just checking items off a list without offering much help or guidance. 

One key to remember is you are already paying for loss control services with the premium that you pay for the insurance coverage. Whether it is your General Liability, Property, Auto or Work Compensation company that is doing the visit with you, their loss control services are already built into the price that you’re paying. 

So to help you get the most out of your next loss control visit, I’ve come up with these 6 tips. 

1. Understand the Purpose of Visit – When asked by the insurance company to set up the visit, ask for clarification on what the insurance company wants from visit. If they are looking to learn about a specific part of your operation or the equipment you use? Perhaps they want to help mitigate any fire hazards in your shop? Whatever it is, understanding the insurance company’s purpose will set the meeting up for success and allow you to engage them in helpful conversations around those topics. 
2. Who, How Long and Where – Along with understanding the purpose of the visit make sure to ask who will be performing the visit, how long they expect the meeting to take and where they would like to go.
3. Make it Your Priority – Sometimes schedules don’t align perfectly, but as the leader of your organization, making the loss control visit your priority is vital. If your insurance company is coming to help your company out don’t you want to be the one to hear what they have to say and offer the appropriate information to them? 
4. Engage your Agent – Some insurance companies are better at informing or involving their agents in the loss control process. That said, many times your agent won’t know that the visit has been scheduled, so whenever you get asked to have a visit done, contact your agent to discuss it with them. They may be able to join you for the visit or at the very least help you before or afterward the meeting. Remember they are your advocate to the insurance company and will be able to help during this process. 
5. Be Prepared – Before the representative comes to visit with you, inform your team and ask if they have any questions they’d like you to bring up during the visit. Chances are no one on your team will say anything, but by asking them, you are including them in the process and helping to foster the safety culture you desire to have. You also should think about the insurance company’s purpose for the visit and what information you can get from them to benefit you the most in that area. 
6. Keep an Open Mind – Lastly, please remember to keep an open mind with the objective of the meeting and with the loss control representatives themselves. I wish all representatives would “wow” their clients with their experience, knowledge and charm however, reality is they do not know the inner workings of your business as well as you do and while some representatives may get into preaching or even scolding mode, check your emotions to not take what they are saying personally or worse close off to them. Take the helpful nuggets from the representative that you can use and politely offer a different vantage point to them if needed and when appropriate. 

 Like most of the advice we give to tree care companies, the more prepared you are for a loss control visit the more successful the visit will be and the further ahead your company will be for it. With practice and attention to the bigger picture of loss prevention and risk reduction, loss control visits can become an integral part of your company’s success.