General Liability Classification for Tree Care Contractors: Ground Work Is Still Tree Work
Author, Rory Anderson, Partner, Account Executive, Rancho Mesa Insurance Services, Inc.
Many tree care contractors are familiar with the ability to split workers’ compensation payroll between tree care and landscape codes when specific conditions are met. This has led some contractors to believe the same approach applies to general liability, particularly when trimming small shrubs, fruit trees, or clearing small trees and brush from the ground. While this assumption is understandable, workers’ compensation and general liability are governed by different classification systems. Applying workers’ compensation logic to general liability classification is one of the most common reasons tree care contractors experience unexpected additional premium at audit.
General liability classifications are governed by the Insurance Services Office (ISO), and ISO class code 99777, Tree Pruning, Trimming, Repairing or Spraying, is intentionally broad. The code explicitly includes tree work performed from the ground, as well as work performed from ladders, by climbing, or using bucket trucks. It also includes incidental chipping, debris removal, stump grinding, storm cleanup, and the removal of a small number of trees. Under ISO rules, the determining factor is the nature of the operation being performed, not whether an employee leaves the ground. If a contractor is hired to perform tree work, that exposure must be reported as 99777 regardless of tree size or elevation.
For a tree care contractor, ground-related tree work should not be treated as landscape work for general liability purposes. If the scope of work involves pruning, trimming, removal, or care of trees, including ornamentals or fruit trees, the operation is considered tree work under ISO classification rules. Ground-based tree work does not become landscape exposure simply because it resembles landscaping. General liability auditors are not focused on whether an employee leaves the ground. Instead, they are focused on what the business does. If a company is licensed as a tree contractor, markets itself as a tree care company, and is hired to perform tree work, that exposure is considered tree operations for general liability purposes.
This does not mean landscape classifications are never appropriate. Tree care companies with a separate landscape maintenance division may properly use landscape general liability codes for crews performing standalone landscape services such as mowing, planting, irrigation repair, or general groundskeeping. However, once a crew is dispatched for tree-related operations, regardless of size or whether the worker leaves the ground, that payroll must be reported under 99777. Understanding this distinction upfront helps tree care contractors avoid audit surprises and ensures their general liability program accurately reflects their operations.
Reach out to me if your tree care or landscape company has encountered challenges with general liability and/or workers’ compensation audits. Having a resource that understands these key distinctions can provide deeper understand and clarity in this often confusing space. I can be reached via email, randerson@ranchomesa.com or by phone at (619)-486-6437.