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.