Author, Rory Anderson, Partner, Account Executive, Rancho Mesa Insurance Services, Inc.
Whether you have a consulting arborist on staff or not, every tree care company has a professional liability exposure. Your general liability policy will likely exclude professional liability claims. A misdiagnosis of tree disease, damage to property, or an injury resulting from an error or miscalculation can be extremely costly. So, it is important to understand the risk, then make a decision on whether or not you would like to transfer that risk by purchasing a professional liability policy.
Many tree care companies have certified arborists on staff that offer consulting and expert advice related to the health, safety, and management of trees. This type of work clearly has the highest need for professional liability insurance to cover any errors or incorrect advice that leads to financial loss, property damage, or bodily injury. A professional liability insurance policy would help protect the arborist by covering legal defense costs, settlements, or judgements if the arborist is found liable for errors or omissions related to their consulting work.
If you do not have a certified arborist on staff and you are simply performing tree care contracting work, you still have exposure to professional liability. General liability policies are in place to cover third party property damage and bodily injury that occurs as a result of your work. They do not, however, cover your work itself. If your tree care business removes the wrong tree or the tree that you pruned died from over-pruning, and your client sues for the cost of the tree and emotional distress, you would need faulty workmanship coverage to cover your work. For many of these instances, you may choose to absorb these costs internally; but, if the mistake was on a mature and rare tree, paying out of pocket may severely impact your balance sheet.
Although there are more examples, these are the two main professional liability exposures that tree care companies face. In a field as specialized as tree care and arboriculture, protecting your business is crucial.
Talk with your insurance agent about purchasing a professional liability policy to transfer your risk and give yourself peace of mind, knowing that you are covered for any unexpected or unpleasant surprises.
If you have any questions, please reach out to me at (619) 486-6437 or randerson@ranchomesa.com.