Insurance question

[goatchin]

A while ago, a man i sold some firewood to asked if i would cut trees from his woodlot behind his house for firewood. I asked him on if the trees were valuable trees for selling or if they were "low quality/junk" trees-he said a mix, but I finally got out of him that he just wants to have the low quality trees taken out to improve the stand. I referred him to the forester/cruiser (not sure the term for him), he marked the trees when we had our woodlot logged back in the fall of '06. I told him that this man would be able to mark the low quality trees that would be for firewood-the forester would know what to look for as far as tree quality/value.....so after my background situation and on to my question.

What type of insurance should i have if I/property owner decides to go on w/ the project? Liablity?? not sure as to what i would need as far as insurance/legal protection. If we decide to go on w/ the project i would draw out a contract.....what should i have in the contract??-how the price would be set????

thanks for any help yall can offer me on the insurance end and the contract end of my question.

 

[lxt]

Truth is!! if you need to ask about insurance & contractual information It could be assumed that you are not in business. Therefore I would say let a Pro. take care of it, the cost for insurance may be more than what the job will pay!!

chances are you are biting off more than you are capable of doing!!, you may end up destroying more of the "valuable trees" than you save.


JMHO

LXT...............

 

[toscottm]

Insurance & Contract

Goatchin,

It sounds like you are asking about 'risk management' using insurance and contracts. To manage risk, you must first know what risks you wish to manage. Are you aware of the liability risks that are involved in this project?

No disrespect, however it is sensed that you are thinking of 'damage or injury' risks only during the workmanship that is to be performed. It is suggested that you recognize that the 'inventory' and marking presents an 'errors & omissions' risk, should the client (property owner) allege that his stand has not been improved (and possibly unimproved). Recognition for the error & omission risks related to the 'consultation' aspects of arboriculture work are often neglected.

This coming Friday (February 15th), I will be presenting a seminar at the International Society of Arboriculture (Ontario Chapter) conference on the subject of errors & omissions. If you are interested in a copy of the material, send your e-mail address and this will be forwarded.

As to your question, good risk management would involve:

Contract

- agreement with the property owner that provides good detail of the work
- agreement with the consultant you brought in to do the inventory
(the consultant agreement should include an 'indemnification' clause in your favour

Insurance

- carry commercial general liability and errors & omissions coverage


For more information about liability risks and insurance protection for arborists, see: www.treesure.ca

Best Wishes!

Scott

 

[goatchin]

scott

i'll PM you my email addy in a bit. thanks

Before I i do any of the insurance stuff and contracts I want to have the home owner actually walk me through his wood lot (haven't seen it yet other than just the very edge) to see what type of conditions im gonna deal w/.

He says there arent very many acres to the wood lot, but what im more concerened w/, as you guys are too, is if the woods havent been thinned/logged in a while, then the trees are going to be very close and increase the damage risk to other trees. the other concern is if my equipment can bring the wood back out. I dont believe the woodlot has any ravines or the such (i've looked at a topo map of the area), mostly down hill slope to where i would have the "landing/proccesing area".


Thanks for the help...I'm still in the brainstorming/planning stages right now.

 

[ATH]

I am learning here, so nobody take what I say as 'the way it is'...

In this specific case, isn't goatchin relying on the consulting forester to actually make the decisions that will improve the woods? The forester maked the trees, goatchin is just going to act based on those decisions.

If the landowner had a contract with the forester, wouldn't the burden of errors and omission insurance fall on the forester? My initial reaction would be that goatchin should have the landowner/forester have their own contract, then goatchin should get his own contract with the landowner. Now he just needs liability (and workers comp if he has anybody working for him), right?

I could see if goatchin subcontracted with the forester, he would be facing more risk...

 

[toscottm]

Ath

Yes, you are quite right. If the homeowner and the consulting forester deal direct, this removes the arborist from these aspects of 'errors & omissions' (however there are others that might still present risk to the arborist but this is another point). If the arborist takes on the 'full job' and provides consultation to the homeowner via a sub-contracted forester, from the homeowner's perspective, the arborist provided the work and is legally responsible (in may aspects of life and business we are subjected to 'vicarious liability' that may arise from the actions of those that act on our behalf).

You are making an excellent point and asking excellent questions!