Why must a tree service be insured, and what happens if they're not?

Tree work is dangerous, and the danger does not stay with the crew. A limb can go through your roof or your neighbor's windshield. A climber can fall in your backyard. When that happens, someone pays, and the only question is whether it is the tree company's insurer or you. That is why insurance is the first thing to check, ahead of price, reviews, or how good the truck looks.

What insurance should a tree service have?

Two policies, minimum. General liability pays for damage the company causes to property, yours or anyone else's. A common minimum for a legitimate tree company is $1,000,000 per occurrence, which sounds like a lot until you price a new roof, a crushed car, and a neighbor's fence from one bad drop. Workers' compensation pays medical costs and lost wages for an employee injured on the job, and in most states it is legally required once a company has employees. A company that runs trucks and chippers should also carry commercial auto. Sole operators sometimes skip workers' comp legally because they have no employees; that is fine only if the person quoting you is the only person who will ever be on your property. Insurance is a large part of why the trade charges what it does; see what tree services charge per hour and why.

What happens if an uninsured tree worker gets hurt on my property?

The claim comes to you. Workers' compensation exists so that an injured worker's bills are paid without a lawsuit. When there is no policy, the worker, or the worker's family after a fatality, still has medical bills and lost income, and the property owner who hired the uninsured crew is the obvious target. Your homeowners policy might defend you, might pay, might exclude it, or might pay and then raise your premium or decline to renew. A few hundred dollars saved on a cheap quote is not worth that exposure. If the company cannot show workers' compensation, the honest advice is to hire someone else.

What is a certificate of insurance and how do I read it?

A certificate of insurance, or COI, is a one-page summary of a company's active policies, issued by its insurance agent. Ask the company to have its agent email the certificate to you directly. A certificate the company hands you could be from a policy that was canceled the week after it was issued; one that comes from the agent today reflects the policy today. On the page, check four things. The insured's name should match the company name on your quote, not a different company or a person. The coverage types should include general liability and workers' compensation, each with a policy number. The limits should be listed, with general liability commonly at $1,000,000 per occurrence. The policy period should include the date of your job. To go one step further, call the agent's number on the certificate and ask whether the policy is in force.

Is bonded the same as insured?

No, and the phrase "licensed, bonded and insured" hides the difference. A surety bond is a promise, backed by a bonding company, that the contractor will do what the contract says; if the company takes your deposit and disappears, or fails to finish, you can claim against the bond. Some cities require a bond before they will issue a tree permit. A bond does nothing when a limb lands on your roof or a climber falls, because those are accidents, not broken promises. Insurance covers accidents. A company that leads with "bonded" and goes quiet when you ask for the insurance certificate is telling you which one it actually has.

Does my homeowners insurance cover a tree company's mistakes?

Sometimes, and you do not want to find out. If an uninsured crew drops a limb through your roof, your own policy is the next place the claim goes. You pay your deductible, your claims history now shows a loss, your premium can rise at renewal, and some policies limit or exclude damage caused by contractors you hired. The clean way to avoid all of this is to confirm the company's general liability before the crew shows up, so their insurer is first in line. What your own policy does and does not pay for when a tree comes down is on does homeowners insurance cover tree removal? The rest of the vetting, including license and credential checks, is on how do I know a tree company is legit?, and a company that refuses to produce a certificate is the first item on the red flags list.

Not yet independently reviewed. General information, not legal or insurance advice. Figures are typical US ranges for planning purposes, not quotes.