Material Change

A material change is any modification to your business that would have influenced the carrier's original underwriting decision. For tree service companies, common material changes include adding crane-assisted removal services, starting chemical or herbicide application, expanding into land clearing or utility line work, significantly increasing your workforce, purchasing new high-value equipment, or beginning operations in a new state.

Your policy requires you to notify your carrier of material changes. Failing to do so can give the carrier grounds to deny a claim. If you told the underwriter you only handle residential pruning and removals under 50 feet, then take on a commercial land-clearing project with 100-foot trees and a crane, and a loss occurs on that job, the carrier may argue the risk was materially different from what they agreed to insure.

The obligation runs both ways. Your carrier must also notify you of material changes to your policy — such as adding an exclusion, modifying a coverage form, or changing the terms of your cancellation clause. These changes typically take effect at renewal, but mid-term endorsements can also introduce material changes. Always read endorsements your carrier issues mid-term; do not assume they are routine administrative updates.

Best practice for tree service companies: establish a quarterly check-in with your agent to discuss any operational changes. Did you buy a new chipper worth $80,000? Add it to your inland marine policy. Did you hire five new climbers? Update your payroll estimate to avoid a large audit bill. Did you start taking jobs requiring work over water? Your carrier needs to know. Proactive communication protects your coverage and builds a stronger relationship with your underwriter.