Insurance Comparison
General Liability vs BOP for Tree Service Companies
Compare standalone general liability with a business owner's policy (BOP) to determine which package delivers the best value for your tree service operation.
| Dimension | General Liability (GL) | Business Owner's Policy (BOP) |
|---|---|---|
| What's Included | Covers third-party bodily injury, property damage, and personal/advertising injury only. | Bundles general liability with commercial property and business interruption coverage in one policy. |
| Average Monthly Cost | Approximately $138/month ($1,651/year) for tree services. | Approximately $181/month ($2,170/year) for tree services — but includes property coverage. |
| Property Coverage | Not included. Must purchase commercial property insurance separately. | Included. Covers your office, shop, stored equipment, and business personal property. |
| Business Interruption | Not included. No protection if a covered loss shuts down your operations. | Included. Pays lost income if a covered peril (fire, storm) forces you to suspend operations. |
| Customization | Highly customizable. You choose your exact limits, deductibles, and endorsements. | Less flexible. BOPs come with preset coverage bundles, though endorsements can be added. |
| Eligibility | Available to virtually all tree service companies regardless of size or revenue. | Some carriers restrict BOPs to companies under certain revenue or employee thresholds. |
| Equipment Coverage | Does not cover your own tools or equipment. Requires separate inland marine policy. | May include limited coverage for business personal property (tools in your shop) but typically not equipment in transit. |
| Certificate of Insurance | COI shows general liability limits only. Clients may require additional coverage proof. | COI shows both GL and property limits, which can satisfy more client requirements in one document. |
| Best For | Solo operators, mobile-only crews with no office or shop, and companies that already have property coverage. | Tree service companies with a physical location (office, shop, yard) that need property and liability in one package. |
| Inland Marine / Equipment in Transit | Not included. Tools and equipment on your truck or at job sites are not covered. | Not typically included. Despite the property component, you still need inland marine for equipment in transit. |
What's Included
General Liability (GL)
Covers third-party bodily injury, property damage, and personal/advertising injury only.
Business Owner's Policy (BOP)
Bundles general liability with commercial property and business interruption coverage in one policy.
Average Monthly Cost
General Liability (GL)
Approximately $138/month ($1,651/year) for tree services.
Business Owner's Policy (BOP)
Approximately $181/month ($2,170/year) for tree services — but includes property coverage.
Property Coverage
General Liability (GL)
Not included. Must purchase commercial property insurance separately.
Business Owner's Policy (BOP)
Included. Covers your office, shop, stored equipment, and business personal property.
Business Interruption
General Liability (GL)
Not included. No protection if a covered loss shuts down your operations.
Business Owner's Policy (BOP)
Included. Pays lost income if a covered peril (fire, storm) forces you to suspend operations.
Customization
General Liability (GL)
Highly customizable. You choose your exact limits, deductibles, and endorsements.
Business Owner's Policy (BOP)
Less flexible. BOPs come with preset coverage bundles, though endorsements can be added.
Eligibility
General Liability (GL)
Available to virtually all tree service companies regardless of size or revenue.
Business Owner's Policy (BOP)
Some carriers restrict BOPs to companies under certain revenue or employee thresholds.
Equipment Coverage
General Liability (GL)
Does not cover your own tools or equipment. Requires separate inland marine policy.
Business Owner's Policy (BOP)
May include limited coverage for business personal property (tools in your shop) but typically not equipment in transit.
Certificate of Insurance
General Liability (GL)
COI shows general liability limits only. Clients may require additional coverage proof.
Business Owner's Policy (BOP)
COI shows both GL and property limits, which can satisfy more client requirements in one document.
Best For
General Liability (GL)
Solo operators, mobile-only crews with no office or shop, and companies that already have property coverage.
Business Owner's Policy (BOP)
Tree service companies with a physical location (office, shop, yard) that need property and liability in one package.
Inland Marine / Equipment in Transit
General Liability (GL)
Not included. Tools and equipment on your truck or at job sites are not covered.
Business Owner's Policy (BOP)
Not typically included. Despite the property component, you still need inland marine for equipment in transit.
What Tree Service Companies Need to Know
Tree service company owners often wonder whether a standalone general liability policy or a bundled business owner's policy (BOP) is the better choice. The answer depends largely on whether you operate from a fixed location. If your business runs entirely out of trucks with no office, shop, or equipment yard, a standalone GL policy is usually sufficient for your liability needs — and you can pair it with inland marine coverage for your tools and equipment.
A BOP makes more financial sense when you have a physical location to protect. The bundled pricing is almost always cheaper than buying general liability and commercial property as separate policies. A typical tree service BOP runs about $181 per month compared to $138 for GL alone plus $80-$120 for a separate property policy. The business interruption coverage included in a BOP is also valuable — if a fire destroys your shop and you cannot operate for weeks, business interruption pays your ongoing expenses and lost income.
One common misconception is that a BOP covers everything. It does not. A BOP will not cover your workers' compensation, commercial auto, or equipment in transit. Your chainsaws, chippers, and bucket trucks on the road or at job sites still need inland marine coverage. And a BOP's property component typically covers business personal property at your premises, not mobile equipment.
For most established tree service companies with a shop or office, the BOP is the better value. For lean startups and mobile-only operations, standalone GL keeps your costs lower while you build revenue. Either way, your GL limits should be at least $1 million per occurrence and $2 million aggregate — the minimum most commercial and municipal clients require.
Frequently Asked Questions
Does a BOP replace the need for workers' compensation?
No. A BOP bundles general liability and commercial property but does not include workers' compensation, commercial auto, or inland marine coverage. These must be purchased separately.
Can I add inland marine to my BOP?
Yes. Most carriers allow you to add an inland marine endorsement to your BOP to cover tools and equipment in transit. This is often cheaper than buying a standalone inland marine policy.
Is a BOP available if my tree service does over $1 million in revenue?
Some carriers cap BOP eligibility at $1 million or $3 million in revenue. Larger operations may need to purchase a commercial package policy (CPP), which offers similar bundled coverage without the size restrictions.
Do I need a BOP if I work out of my home?
A home-based tree service can still benefit from a BOP if you store equipment at your residence. Homeowner's insurance typically excludes business property and business liability.
Will a BOP cover damage my crew causes to a client's property?
Yes. The general liability component of a BOP covers third-party property damage, such as a crew member dropping a limb on a client's fence or driveway.