Choosing a tree service company that is fully insured is one of the most important features that you must consider.
Fact 1. Trimming and removing trees is undeniably dangerous work.
Fact 2. Accidents happen.
If the tree service industry is so precarious, you would think that ALL tree companies would naturally have insurance. But lo and behold, many companies do not! “Why wouldn’t they?” you may wonder. Well, due to the dangers of the industry, insurance rates are extremely high. Some tree business owners simply do not want that high of an expense because if they did have insurance, it would cut drastically into their profits. Therefore, it isn’t always the best idea to settle with the lowest bidder, especially if there is a huge difference between bids.
Here is an example scenario. You need a tree removed, so you collect bids from three different tree care companies.
Company #1 quotes $3,000.
Company #2 quotes $3,500.
Company #3 quotes $1,200.
As you can see, the $1,200 quote that you received from Company #3 is drastically lower than the other companies. Too drastic of a difference! Yes, from a financial standpoint, it is the most appealing. But there is a hidden reason why they can afford to charge so little. It could be that they pay their employees “under the table,” so they don’t have the payroll taxes and all the other expenses that go hand-in-hand with payroll. It could be that they are inexperienced and unknowingly underbid the project — which will not result in a good outcome for them, but also for the customer. We’ll touch on that later in this article. It could also be that they are not insured, so consequently, they do not have the expenses that the other companies have to consider when drafting your quote. It could also be a combination of all the above mentioned. That is just a bad recipe for additional disaster if disaster were ever to hit!
What type of “disasters” could happen on a tree project? The most common mishap would be property damage. Sometimes, even with the most experienced and skilled companies, limbs fall in an unexpected direction, damaging whatever is situated below, such as fences, roofs, sprinklers, landscape, and hardscape. In the worst-case scenarios, a person can get injured or even fatally injured. If anyone is injured on your property, then you, as the property owner, could be held liable IF the injured worker was not covered by insurance. So, please ensure that any tree worker you contract to work on your property is properly insured as a safety precaution for everyone.