Jim Colton
ArboristSite Lurker
Heads up... You might just think you are insured. Hopefully you are. Details on my learning curve below.
I am just getting started primarily as a Stump Grinder and have been shopping Commercial Liability Insurance. What I am discovering might be an indication you all should consider.
Stump Grinding insurance gets quoted in three categories apparently:
1. Excavation. For a sole proprietor with no employees this can run from $10,000-$20,000 annually. It might be required in Texas if excavating which seems to be defined as disturbing soil more than 16" below grade.
2. Tree Services including Arborists and Tree Removal. For a sole proprietor with no employees this might run from $2,000-$4,000 annually. There could be limits and exclusions you have not considered as discussed later.
3, Landscaping. For a sole proprietor with no employees this can run from $600-$2000 annually. Many of these policies specifically exclude Stump Grinding even though the agent may still sell you the policy. Some might cover tree trimming from the ground with a pole saw or felling without climbing. If you are aware of a policy like this that does cover stump grinding operations, please let me know.
I got my first quote Friday for a Tree Services including Arborists and Tree Removal Commercial Liability policy. The policy specifically covered Stump Grinding along with above grade work beyond my anticipated scope of work.
Then I read the coverage limits. Before sending me the proposed policy the agent had quoted me a 1-million-dollar policy over the phone then sent me a bill for $2,884 to pay to lock in coverage for one year. I advised the agent I would wait until I read the coverage and exclusions before I made any commitment. She follows up with the proposed policy for $50,000 coverage rather than the million she quoted me. But wait... There is more... The policy excludes all work where I have not received written confirmation that the 811 locate has been completed. Texas 811 requires a locate if I excavate and they define excavate as work 16" below grade. I don't grind that deep, so I am seldom required to call first or at all. But wait... There is more... They also exclude coverage for any utilities that are not shut off at the property line. In my 30 years in construction related industries I can't recall being on a job where the site utilities were all disconnected other than comprehensive site demolition. Effectively the (million dollar) insurance policy I was offered would cover me for $50,000 in damages to property and injury to individuals as long as a locate was documented in writing and utilities were disconnected at the street before I started work. I quit reading at that point but would not be surprised to discover individuals injured might lack coverage if they were closer than 100' from my grinder or were not wearing PPE or had missed the mandatory event specific safety training. Aargh...
Takeaway is to check your coverage and exclusions you might have an expensive policy that covers almost nothing you do. Some folks might want a super cheap policy that provides an excuse for claiming they are insured. Others might be paying for Excavation when they only need Tree Services or for Tree services when they don't climb or work from ladders. Nothing above is legal advice Just for entertainment and educational purposes only. Your mileage may vary.
Please advise if you do have a Landscaping policy that does cover stump grinding. I would love to move to the more affordable category. Any good references for insurance are appreciated. I anticipate connecting with a Tree Services policy in the $2500-3000 range but have not found that quite yet.
Please share if your claim for any loss has been denied or if you have a great policy.
I am just getting started primarily as a Stump Grinder and have been shopping Commercial Liability Insurance. What I am discovering might be an indication you all should consider.
Stump Grinding insurance gets quoted in three categories apparently:
1. Excavation. For a sole proprietor with no employees this can run from $10,000-$20,000 annually. It might be required in Texas if excavating which seems to be defined as disturbing soil more than 16" below grade.
2. Tree Services including Arborists and Tree Removal. For a sole proprietor with no employees this might run from $2,000-$4,000 annually. There could be limits and exclusions you have not considered as discussed later.
3, Landscaping. For a sole proprietor with no employees this can run from $600-$2000 annually. Many of these policies specifically exclude Stump Grinding even though the agent may still sell you the policy. Some might cover tree trimming from the ground with a pole saw or felling without climbing. If you are aware of a policy like this that does cover stump grinding operations, please let me know.
I got my first quote Friday for a Tree Services including Arborists and Tree Removal Commercial Liability policy. The policy specifically covered Stump Grinding along with above grade work beyond my anticipated scope of work.
Then I read the coverage limits. Before sending me the proposed policy the agent had quoted me a 1-million-dollar policy over the phone then sent me a bill for $2,884 to pay to lock in coverage for one year. I advised the agent I would wait until I read the coverage and exclusions before I made any commitment. She follows up with the proposed policy for $50,000 coverage rather than the million she quoted me. But wait... There is more... The policy excludes all work where I have not received written confirmation that the 811 locate has been completed. Texas 811 requires a locate if I excavate and they define excavate as work 16" below grade. I don't grind that deep, so I am seldom required to call first or at all. But wait... There is more... They also exclude coverage for any utilities that are not shut off at the property line. In my 30 years in construction related industries I can't recall being on a job where the site utilities were all disconnected other than comprehensive site demolition. Effectively the (million dollar) insurance policy I was offered would cover me for $50,000 in damages to property and injury to individuals as long as a locate was documented in writing and utilities were disconnected at the street before I started work. I quit reading at that point but would not be surprised to discover individuals injured might lack coverage if they were closer than 100' from my grinder or were not wearing PPE or had missed the mandatory event specific safety training. Aargh...
Takeaway is to check your coverage and exclusions you might have an expensive policy that covers almost nothing you do. Some folks might want a super cheap policy that provides an excuse for claiming they are insured. Others might be paying for Excavation when they only need Tree Services or for Tree services when they don't climb or work from ladders. Nothing above is legal advice Just for entertainment and educational purposes only. Your mileage may vary.
Please advise if you do have a Landscaping policy that does cover stump grinding. I would love to move to the more affordable category. Any good references for insurance are appreciated. I anticipate connecting with a Tree Services policy in the $2500-3000 range but have not found that quite yet.
Please share if your claim for any loss has been denied or if you have a great policy.
