Three Very Common Tree Company Misconceptions
best casinos for onlinep>Many are unaware that the tree care industry is one of the most dangerous professions. Because tree care workers are working with dangerous equipment at extreme heights, tree care work carries a heavy risk of serious injury or death.
A responsible tree care company should not only protect the health and well-being of your trees, but also protect their customers from any potential liability.
Below are three common misconceptions about tree care:
Misconception #1:
All insurance is created equal.
False! Insurance in the tree care industry is very expensive, especially worker’s compensation. Very often, many companies do not carry the proper insurance needed to protect the customer from liability. Some may even stretch the truth to try to convince the customer that they are covered, by saying that they are “fully insured,” when many are unsure of what coverage is actually needed.
Customers should be diligent to obtain certificates of liability prior to any work being performed. The certificate should come directly from the insurance company—not the tree company. (For some tree companies, it is much easier to create fake certificates that list “fully insured” on them, than it is to actually buy coverage. Some companies initially purchase coverage, only to let it expire and still carry the certificate around with them).
Insurance definitions:
Worker’s Compensation: This is the most expensive and the most necessary insurance. It covers injuries that tree care company employees may occur while on the job. There is no substitute for it! Without worker’s compensation, tree care companies are still legally required to pay for any injuries; however, most cannot and the customer is next in line to pay for them.
General Liability Insurance: This insurance protects the customer’s property. This insurance would pay the customer if a tree fell on their house; however, it does not cover injuries incurred by tree care workers, nor accidents involving any on-road vehicle.
Automobile Insurance: This insurance covers damages resulting from accidents involving on-road vehicles. It would provide coverage if a work vehicle knocked off a tree limb, or ran into a house or person.
Example of a tree care accident case:
Two tree workers are removing a tree in your front yard. One worker gets in a work truck to back up, but does not see the other worker hauling brush behind him. When he backs up, he knocks over the other worker, crushing him with the truck. In a panic, the driver quickly drives forward and hits the customer’s house, causing $15,000 damage to it.
Who pays?
The owner of the tree company only owns his truck and some equipment as his assets, which are worth a total of $9,000. He rents the house he is living in, and has no savings or retirement. The company does not have auto insurance or worker’s compensation, but does have a small general liability insurance plan (which the owner used to sell the work to his client as “fully insured”.) His general liability insurance will not cover any of the costs of the accident because it involves an on-road vehicle. The surgery and hospital bills for the injured employee total $87,000, not to mention lost wages, totaling $20,000, plus $15,000 for the repair to the customer’s house, for a total bill of $122,000.
This is what could happen:
1) The customer receives a letter from the tree company’s general liability insurance company, stating that they are not responsible for the claim, since it involved a vehicle that was not insured.
2) The customer receives a letter from their homeowner insurance company, stating that they will not pay for any damages done to the house, and any of the medical bills associated with the accident, because the customer was responsible for ensuring that the tree company they hired had the proper insurance before the job was started. (Many homeowners’ insurance policies require the homeowner to verify and confirm that the companies they hire have the proper insurance.)
3) The customer will receive a letter from the lawyer of the injured employee stating that the owner of the tree company has filed for bankruptcy and has only paid $9,000 toward the employee’s injuries, and that the employee is seeking to collect the remaining $113,000 from the homeowner, plus legal fees.
It is to be mentioned that there is very little defense for this type of lawsuit.
Misconception #2
I should go with the cheapest bid.
Some quoted prices seem too good to be true. Most likely they are. Customers should be very leery of companies that offer the cheapest prices. Most often than not, they are not properly insured, not properly hiring and training their employees or not properly trained themselves. This all means that they are more prone to accidents, and less likely to have the insurance to cover them.
What may start out as a “cheap” job, may end up costing much (much) more.
Misconception #3
One tree care company is just as good as any other.
Not all tree care companies are created equally. Don’t just hire someone who claims to be a “tree expert” or “tree doctor.” Check out their credentials. Be very leery of tree companies that claim they are fully licensed. There is no governing or regulatory body for the tree care industry in the state of Texas. So ask questions before you hire someone. Make sure that you are hiring a Certified Arborist who has practical knowledge of, and many years of experience with trees. Check to determine if they are affiliated with a reputable trade association such as ISA (International Society of Arboriculture) or TCIA (Tree Care Industry Association). You can check out their credentials or find an Arborist at the following link:
http://www.isa-arbor.com/faca/findArborist.aspx
Customers should also ask their tree care company about their knowledge of nationally recognized pruning standards. If the company seems unfamiliar with these standards, they should look elsewhere. Bad pruning and over pruning (such as “topping”) can create huge hazards:
http://www.treesaregood.com/treecare/topping.aspx
If the company you hire is doing any pest applications, make sure that they have a State Pesticide Applicators license through the Texas Department of Agriculture. Any company that provides pesticide treatments to your property, by law, must be licensed through the Texas Department of Agriculture. You can verify a company’s license by contacting the State Office:
Texas Department of Agriculture Licensing Department
license.inquiry@TexasAgriculture.gov
(877) 542-2474
Fax: (800) 909-8534