“Having a driver screening process is tantamount to risk reduction,” says Shipp. This can include checking references, drug testing, conducting a background check, and reviewing driving records. It is not uncommon for insurance compa- nies servicing the tree care industry to turn down companies if a faulty driver may provide an exceptionally high risk. Doherty also suggests hiring more ex- perienced drivers, preferably over the age of 25. When applying for insurance, be pre- pared for a lot of dialogue with the poli- cy underwriter. They will want to know about safety protocols, ongoing train- ing, certification, and accreditation. “If an underwriter has no idea what you are doing for training, why would they consider favorable rates or even offer a company a quote?” Fain asks.
Auto accidents are among the leading causes of fatalities for tree care professionals.
Hiring practices is another area that has become tightly interwoven with insurance. Oen, a rigorous hiring pro- cess can help keep costs down.
A supplemental questionnaire might also be required to answer questions regarding the tree care company’s safe- ty program, vehicle maintenance, driv- er training and formal safety training, Blackman adds. Good accounting and bookkeeping be- come paramount in tracking these met- rics. These can also be used to show in- surance companies that companies can make premium payments on time and not have any lapses in coverage. “[This can be] just as bad as having bad claims,” says Shipp. Another way for a business to prove its worth is to implement technology and other solutions meant to offset high-level risks from one of the cost- liest components of tree work: auto accidents. These can include using GPS trackers or dashboard cams in work vehicles, such as those offered by Samsara , which specializes in fleet management. With one eye on the driver and another on the road in front, dashboard cams may be a worthy investment to help defend companies from ”nuclear” and “thermo- nuclear” verdicts up to $10 million .
Insurance 101 Here are the most common insurance coverages in the tree care industry.
General liability Considered the “first line” of coverage for most businesses, general liability covers general risks, such as damage to property or injuries sustained while on a property. Workers’ compensation This provides coverage for lost wages, medical expenses, and rehabili- tation costs to employees who become hurt or ill during their job. It also pays death benefits to the families of workers who are killed on the job. Property This insurance protects a business’ physical assets, such as damage to buildings, equipment, and any other assets of value within the workplace. This coverage also protects against damage sustained during a weather event or fire. Automobile liability and physical damage This can include auto liability to cover work-related injuries or damage caused by you to others, and auto physical damage, which can include acci- dents, fire, or theft. Professional liability This can protect arborists if they accidentally kill a tree or cut down the wrong one. Pollution Examples for this kind of insurance include things like accidentally spilling hydraulic fluid on someone’s lawn or leaks from trucks. Cyber Protection against data leaks, credit card hacking, employee information leaks, hacking of computer software used in jobsite machines, and ransomware attacks. Umbrella Provides additional coverage for general, auto liability, and employer liability up to $5 million.
44 | ArborTIMES Winter 2024
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