Monopoly

[Pgtree]

I recently started putting together a tree company in the Denver area. To obtain a license in the city of Denver you have to show proof of 500K liability insurance befroe you can take the written test. After you pass the written test, you have to trim a tree in the city and the city forester inspects your work before you can have the license.

I stared looking into insurance co's that will cover us arborists, seems the only one in the USA is the Hartford. Is this true? Do any of you have any other carriers, or is it truly a monopoly?

Do other citys have the same testing proceedures as Denver?

Pgtree

 

[Menchhofer]

There are other carriers. Pekin and CNA for example. Pekin seems to be the least expensive....

I hope the forester who checks the tree you trim is an arborist of some type, otherewise if you do trim the tree properly, he will have no idea what is going on..

 

[mikecross23]

Don't have to even be competent where I'm from to "get legit." People 'bout as sharp as a bowing ball could get liscensed.
The Dumbest bear in the bush could open a tree service here.
Never thought of it before, but I see that as a major flaw where I'm from.

I use Southeast Fidelity Corporation (SEFCO) for insurance. Not sure if they are a good co. or not. I found SEFCO by calling around to all insurance agents in my city and having them all get back to me w/ premiums. I told them what I was tring to accomplish, then offered the services I perform, and asked for a $100,000 dollars of coverage. I realize now I should have more coverage added when it's time for renewal.

 

[John Paul Sanborn]

You need to call around to different brokers, there are a number of underwriters, just need to find the right one.

I'm paying 1300 this year.

 

[Pgtree]

Thanks for the leads, believe me I will follow up on them. I did call two brokers in my area, they both said the Hartford is the only company. The hartford was 10K per year to cover for 1 mil. and 4 vehicles. Sounds like the other companies may be less.

The city forester here is a female, and she seems to be doing a good job thus far. In fact they just raised the bar a bit in the testing proceedures to weed out the hacks. I had a license here 10 years ago, and have been certified w/ ISA for 6 years, and they still are making me jump through the hoops, its a good thing. There are 167 licensed companies in Denver alone so I'm glad to see more vigorous testing.

Thanks again- Pgtree

 

[John Paul Sanborn]

Western Heritage out of Scotsdale AZ underwrites my policy.

The pool of companies is rather slim though. I had 2 companies drop out on me in the 4 years I've carried insurance.

 

[johncinco]

As a side arm of our company we help clients find coverage for all of their liabilty and P&C. Here is the answer I got back from our associate when I asked the question.
"Citizens will quote on this with us. Tree Removal Services is a tough GL class...we might entertain with a $1000 PD deductible on the liab as well as making sure the auto and liab are placed together. It's not a class where we try to be "cheap" on pricing since it's not a frequency of loss class but a severity.

Time in business and overall experience with this type of work is
critical...also the number of employees and frequency of turnover would play a part..."

I simply asked because I was curious to find out if there was really only 1 carrier. Once again, a well educated agent can prove they show their worth.

PS. This is in so way an offer or solicitation for coverage or insurance services. Simply an "aint that interesting" comment. JB

 

[Pgtree]

All input on this subject has been GREATLY appreciated. I contacted several more brokers yesterday and gave each explicit instructions to find someone other than Hartford. I will keep you all posted.

Pgtree

 

[treeman82]

I too would suggest going to a brokerage house and telling them you need tree insurance. Some places will tell you they can't help you.. others will be of a great help to you. I think the larger brokerage houses would be a better place to go. They are less personal unless you know somebody there, but they also have a lot more companies to choose from. I had tried the Hartford for the past couple years... they want at least 2 full time employees plus the operator. They also want a certain amount of payroll per year. Then on top of that they want I THINK at least 2 years experience. It MAY be 5 years. I could be wrong. They sound like they have the best prices from what I can understand.... however they also seem to be the most picky.

 

[treewhisperer]

pgtree,
there are several good insurance brokers in colorado that cover you for tree work, just make sure they understand what you are doing- climbing trees. once you leave the ground you enter into whole different type of coverage, otherwise they classify you as a landscaper and if you are out doing a job and up in a tree and break something they wont cover you. i have a buddy in boulder that has insurance through farm bureau- pretty reasonable.
as far as licences, we have a license program here in longmont, and have some quality people doing work because of it. in boulder they dont have a license (go figure boulder!!) and there are alot of guys with a pickup and chainsaw working off ladders down there.anyways once you licensed in denver the other surrounding cities should recognize that, and all you will have to do is pay a fee and they will issue you a license (lakewood, wheatrige).hope some of this helps!

 

[geofore]

ins.

So you are not mistaken for a lawnscraper when you ask for insurance. Arborist: NAICS# 561730 and/or SIC# 0783

 

[treeman82]

Farm Family will cover tree work supposedly.

 

[tophopper]

10k a year for 1 mill coverage and 4 vehicles? That is highway robbery!!

I currently use CNA, last year i looked into the Hartford and they were just simply more expensive for the same coverage.

I have a 2 mill liability policy, 1 mill coverage for auto including full coverage on my pickup and on my chip truck and chipper. I pay something like 3800. per year, my premiums are broken into 10 installments per year averaging about 390.00 per payment

 

[treeclimber165]

John5,
I just this week got a quote on liability insurance thanks to this thread and others. I asked about the auto coverage (since it expires in 3 weeks anyway) and they did not want it.
My quote through a local independant agent was $826.51 for $300K liability with $500 deductible. I'll find out which company they placed me with when I get in the office to pay them.

As a self employed subcontractor I don't see the need for more coverage than that. If I buy too much coverage, it might be viewed as a lawsuit target if the guy I'm working for causes mega damage and doesn't have enough insurance to cover it. I cannot envision being able to wreck more than a quarter million dollars worth of stuff in one cut even if I was trying!