Navigating the Hard Market in Tree Care Insurance: What Business Owners Need to Know

Author, Rory Anderson, Partner, Account Executive, Rancho Mesa Insurance Services, Inc.

The tree care industry has always carried a unique set of risks, but in today’s insurance climate, business owners are facing challenges unlike anything they have seen before. What used to be a straightforward cost of doing business has evolved into one of the more complex and expensive aspects of running a company. Nearly every major coverage line is feeling rate pressure, stricter underwriting standards, and fewer carriers willing to take on the exposure.

This environment is what the industry calls a hard market. Knowing why this is happening and how it impacts your business is essential to navigating it successfully.

Auto: The Leading Cost Driver

Commercial auto has become the biggest pain point in insurance programs for tree care companies. Premiums are rising sharply due to:

• Vehicle costs - new trucks, parts, and repair expenses have jumped significantly

• Medical bills - post-accident treatment continues to escalate year after year

• Nuclear verdicts - jury awards in the millions, even for relatively routine accidents, have made insurers more cautious and aggressive with rate adjustments.

In response, many carriers are raising rates substantially and, in some cases, reducing coverage. For contractors that rely heavily on vehicles, this is creating major financial strain.

General Liability: The Long Tail of Claims

Tree care companies are also feeling pressure on general liability coverage. Carriers are dealing with:

• Rising medical costs for bodily injury claims

• Inflated property damage payouts as materials and labor costs climb

• Claims that appear years after work is completed. For example, if a company trims a tree and years later a storm brings it down, liability may still trace back to the original contractor.

These realities have not only led carriers to raise premiums, but also scrutinize operations more closely, sometimes declining to offer quotes on accounts they would have considered in the past.

Umbrella: Following the Trend

Because umbrella liability sits directly on top of auto and general liability policies, the pricing inevitably follows those trends. As underlying rates climb, umbrella coverage has become more expensive, and carriers are regularly reducing limits. This makes it difficult for companies to secure the higher levels of protection they need.

Workers’ Compensation: No Longer a Safe Haven

For years, workers’ compensation provided a soft landing spot in an otherwise tough market. That has changed.

The 2025 pure premium for class code 0106 (tree care) has increased 12% from $9.91 to $11.24. Pure premium is the baseline rate set by the state that reflects the expected cost of claims for a given class code, before carrier expenses, fees, and profit are added.

The primary drivers of this increase are rising medical costs, a surge in cumulative trauma claims, and higher wages which increase claim payouts since lost wages are a core part of workers’ compensation benefits.

Tree care companies that once relied on stable workers’ compensation programs are now seeing noticeable increases on this critical line of coverage.

Positioning Your Company for Success

While companies cannot control market cycles, they can influence how carriers view their risk. Strategies include:

• Strengthening safety programs - documented safety practices lower both claim frequency and severity.

• Prioritizing fleet management - clean driving records, ongoing training, and telematics can make your auto risk more attractive.

• Start early - the more lead time your broker has, the more leverage you will have with carriers.

• Choose a specialist - generalist brokers often miss industry nuances. A broker who understands tree care can align your program with carriers who know the risks.

The hard market is reshaping how insurance works for tree care companies. Rising rates and limited capacity are real challenges, but businesses that invest in safety, plan ahead, and partner with knowledgeable advisors can still secure strong and competitive programs. Now is the time to approach insurance with a proactive, not reactive, strategy.

For assistance navigating the hard market, contact me at randerson@ranchomesa.com or (619) 486-6437.