Last Updated: May 31, 2024, 7:07 am by TRUiC Team

Tree Stump Removal Business Insurance

Getting insurance for your tree stump removal business is essential.

Tree stump removal businesses need to be protected against claims involving things that could foreseeably occur and cause them significant financial damage, including property damage, negligence disputes, and employee injuries.

For example, an employee may happen to get injured while removing a tree stump — or they might accidentally damage a client’s property or garden while doing so.

We’ll help you find the most personalized and affordable coverage for your unique business.

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Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Tree Stump Removal Business

General liability insurance is — generally speaking — one of the most important insurance policies for tree stump removal businesses.

Some of the risks general liability insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

Having said that, it is important to note that not all tree stump businesses will be fully covered with just a general liability policy.

This means that — depending on your business’s unique risks — it may be a good idea to purchase additional coverage:

  • Workers’ compensation: This policy will cover your business from employee-related disputes, such as bodily injuries and wrongful terminations.
  • Commercial property: This will cover the cost of repairing and/or replacing your tree stump removal equipment if it happens to get damaged or stolen.
  • Professional liability: This will protect your business in the event that you or an employee commit a negligent act or omission that directly affects one of your customers.

You will also need to decide what type of coverage provider you will work with. There are two options available for small business owners:

  • Traditional brick-and-mortar insurers: This category includes reputable providers that have been operating for several decades (if not for over 100 years). Examples of brick-and-mortar insurers include The Hartford, Hiscox, and CNA.
  • Online insurers: These insurers use tools like AI in order to offer personalized coverage with no insurance agent; this allows them to be more affordable due to the lower overhead involved.

In most cases, we recommend going with an online insurer as a small business due to the lower cost.

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Cost of General Liability Insurance

On average, tree stump removal businesses in America spend between $400 - $1500 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a tree stump removal business to other professional industries using the graph below.

Several factors will determine the price of your policy. These include your:

  • Location
  • Deductible
  • Number of employees
  • Per-occurrence limit
  • General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.

A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

Graph showing average price of general liability insurance prices per industry

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Find the Best Rate

Discover the best coverage at the lowest rate in our low-cost business insurance review.

Common Situations That General Liability Insurance May Cover for a Tree Stump Removal Business

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Example 1: During a job, a large stump falls on your client’s driveway, cracking it.  They are asking for $19,000, claiming the entire driveway must be redone. Your general liability insurance would cover the cost to repair or replace the driveway. 

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Example 2: While visiting your facility, a customer falls and injures her back. She is suing your company for the cost of her medical expenses and additional damages. General liability insurance would pay for legal representation and awarded damages.

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Example 3: Your new landlord requires evidence of liability insurance. A general liability policy would help fulfill this requirement.

Other Types of Coverage Tree Stump Removal Businesses Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:

Commercial Property Insurance

A commercial property insurance policy is purchased to protect a business’ investments. Should a loss, such as a windstorm, theft, or fire occur, the policy would pay to repair or replace owned real estate, as well as any business-owned assets kept onsite. 

Inland Marine Insurance 

Most commercial property insurance policies exclude or limit coverage to business tools used offsite. To avoid any coverage gaps, it may be necessary to purchase an inland marine policy. Inland marine insurance covers business property, equipment, and tools that are damaged while off premises. 

Commercial Auto Insurance

If you or a team member is involved in an auto accident conducting business-related activities, commercial auto insurance can pay for the repairs to damaged vehicles, as well as medical expenses, liability claims, and lost equipment.

Workers’ Compensation Insurance

This state-mandated policy is a requirement for all business owners with employees. It offers medical coverage and a percentage of lost wages for workers who are injured while on the job.  If sued over the claim, the policy would also cover your legal representation costs.  

Commercial Umbrella Liability Insurance

If a lawsuit is brought against your company that becomes expensive and lengthy, your underlying general liability limits could be exhausted.  An umbrella policy takes over where the general liability insurance leaves off, keeping your personal and professional assets protected in a worst case scenario.

Crime Insurance 

Employee dishonesty, fraud, and forgery are excluded coverages on a standard policy. Crime insurance covers you for such a loss, reducing the chances of a gap in coverage.

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.

Here are several things you can do to better protect your tree stump removal business:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
  • Stay up to date with business licensing.
  • Maintain your corporate veil.

Tree Stump Removal Business Insurance FAQ

Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.

A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.

"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.

Yes. This is because you will not be able to predict when you will need it, and not having the right business insurance policies when they are needed can end up costing you thousands of dollars down the line.

Fortunately, most general small business insurance policies are also quite affordable.

Not necessarily. Certain exceptions may be written directly into your tree stump removal business insurance policy, and some perils may be entirely uninsurable.

Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.

An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.