Babies first business insurance

[Tenderfoot]

What kind of insurance policies do you all recommend? I am starting my own tree service and am trying to get some straight answers about what kind of coverage is realistically recomended. I want to have 3 men on a job, myself included, two trucks, skid steer, chipper and a trailer. Plan for the climber is to hire someone I know and have had past business ventures with then pay to train them on top of previous experience. I will be taking climbing classes in climbing and rigging as well.
The rest of the operations I have covered (place to park, where to get the equipment, what it will cost, repairs, storage for equipment, wood disposal etc), but the insurance and all the paperwork has be a bit overwhelmed. I have enough experience according to a good friend who is an insurance agent so that is covered, but how much and what kind is something I want to hear from someone in the industry.

 

[Tenderfoot]

Also, what do you do if someone is stuck up a tree and must be rescued? I know there are classes but I have tried speaking to local types and they all shrug and say something like 'pray', 'use the bucket truck' or 'call the fire department.'

 

[ATH]

You should really be talking to an insurance agent familiar with business insurance...not just listening to a bunch of schmucks on the innerwebs. There are some things that are State or locality specific - so check with locals to see if you need licensing and what insurance is required to obtain those licenses.

Having said that...this schmuck will share what I have!:

Start with general liability. I wouldn't go less than a million dollar policy. The price of this will increase with your payroll. The reason is that is an easy way to measure
"exposure". More employees spending more time on jobs = higher likelihood of an accident.

Are you applying any pesticides? If so, that is a separate endorsement on the general liability (at least that is required in Ohio).

Workers comp will also be necessary. You are fortunate that you can shop that around. In Ohio, we are forced to buy that through the State. The cost of this will also likely be tied to payroll.

Obviously, automotive liability insurance on your vehicles.

Those are bare-bones minimums...you shouldn't run a business without. People do, but they are idiots.

It would also be wise (in my opinion) to have fire/theft/vandalism insurance on your property and equipment. If you have loans on any of that, the bank will probably require it - they need their money even if your chipper burns up. Kinda like comprehensive insurance on an automobile. Most states require liability (so you can cover the damage you cause to somebody else), but it is up to you whether you want to pay your insurance company to cover your car in an accident that you cause. In a business setting, you need to think about how the business will earn money if you loose your equipment. Most equipment will likely be covered under what is called "Inland Marine Insurance".

 

[ATH]

Also, what do you do if someone is stuck up a tree and must be rescued? I know there are classes but I have tried speaking to local types and they all shrug and say something like 'pray', 'use the bucket truck' or 'call the fire department.'

well....those are all good answers! You should have a second competent climber on site ready to perform the rescue. Classes and training will prepare you/them for that situation.

I don't do it, but think it is a good idea: Run a second rope in the tree when you are setting up to climb. This is only there to be used in a rescue situation. Talk to the fire department - they may or may not be trained in rope rescue.

Finally...I highly recommend joining TCIA (and ISA). TCIA can provide a lot of this information and help you find the training and/or other resources you need. I think both TCIA and ISA memberships are essential for professional tree care operations. ISA does a better job teaching the science of trees and tree care (especially if you have a good local/state chapter) while TCIA is more the 'business end' and safety of the industry.

 

[AGoodSteward]

Commercial businesses around here all have policies mandating that anyone working on their site be covered up to 1/2 million. Some are 1mil. A few are 3mil. Bring a copy of your policy to the bid. Put it in your advertising. It is worth it.

 

[Tenderfoot]

You should really be talking to an insurance agent familiar with business insurance...not just listening to a bunch of schmucks on the innerwebs. There are some things that are State or locality specific - so check with locals to see if you need licensing and what insurance is required to obtain those licenses.

Having said that...this schmuck will share what I have!:

Start with general liability. I wouldn't go less than a million dollar policy. The price of this will increase with your payroll. The reason is that is an easy way to measure
"exposure". More employees spending more time on jobs = higher likelihood of an accident.

Are you applying any pesticides? If so, that is a separate endorsement on the general liability (at least that is required in Ohio).

Workers comp will also be necessary. You are fortunate that you can shop that around. In Ohio, we are forced to buy that through the State. The cost of this will also likely be tied to payroll.

Obviously, automotive liability insurance on your vehicles.

Those are bare-bones minimums...you shouldn't run a business without. People do, but they are idiots.

It would also be wise (in my opinion) to have fire/theft/vandalism insurance on your property and equipment. If you have loans on any of that, the bank will probably require it - they need their money even if your chipper burns up. Kinda like comprehensive insurance on an automobile. Most states require liability (so you can cover the damage you cause to somebody else), but it is up to you whether you want to pay your insurance company to cover your car in an accident that you cause. In a business setting, you need to think about how the business will earn money if you loose your equipment. Most equipment will likely be covered under what is called "Inland Marine Insurance".

That is all good points. I was looking at a what the agent i spoke to calls a 'business owners policy'. Workman's comp, liability, auto, equipment and an umbrella policy rolled into one. I will be getting loans so covering equipment is mandatory.

I wish to avoid pesticides as it requires more specialized equipment and training I do not want to buy at this time. The real advantage of training is the insurance thing. I would get a break on insurance if everyone had been trained by some sort of known organization. That cost needs to be figured out (me and a hired hand) for climbing and rigging. The climbing I am not as worried about, but the rigging needs to be done right. I need to learn how to be a better groundy as well as a climber. Right now the plan is to partner with my friend and we both train together and as we grow, hire a third set of hands. I think that if we have no employees, and are both partners, we may be given somewhat of a break. Too much stake in the company to take risks.

I am very concerned about rope rescue. Rescues will be simple(ish) if a ladder or bucket can be brought to them, but the back yard trees where no equipment can be brought in concern me.

Commercial businesses around here all have policies mandating that anyone working on their site be covered up to 1/2 million. Some are 1mil. A few are 3mil. Bring a copy of your policy to the bid. Put it in your advertising. It is worth it.

Agreed. I was looking at about a million or two in liability, depending on the cost, and 500/1mil/500 on the truck(s). Insurance is not a place I wish to cheap out. So far nothing I have looked into is worth cutting costs on, other then my take home income for the first couple years.