Job Cost Estimator

Why is insurance charged separately?

Tree work is one of the most dangerous trades in the country. Our insurance premiums reflect that risk and must be passed through on every job:

• Workers’ Compensation — Required by NY law. Class code 0106 (tree pruning/trimming) averages ~$9 per $100 of payroll. One of the highest-rated trades due to aerial work risk.
• General Liability — Covers property damage to the client’s home, structures, vehicles, and landscaping. Typically $2,000–$4,000/year for tree companies (~3–5% of revenue).
• Disability Insurance — NYS-required disability and paid family leave coverage for all employees.
• Payroll Taxes — Employer’s share of Social Security (6.2%), Medicare (1.45%), federal & state unemployment (FUTA/SUTA). Mandatory on every dollar of labor.
• Commercial Auto — Covers bucket truck, chip truck, and fleet. Avg $2,000–$5,000/year; bucket trucks require $1–2M liability limits adding $500–$1,000/vehicle.
• Equipment / Inland Marine — Covers chainsaws, rigging gear, chipper, stump grinder — typically 2–5% of equipment value annually. Most tree companies have $50K–$250K in equipment.

These costs are real and unavoidable. We carry full coverage so you and your clients are protected.

If you don’t carry your own insurance, we are legally liable for you.

Under New York law, when you work on a job under our name or alongside our crew, we become the responsible party if something goes wrong. Here’s what that means:

• Workers’ Comp liability: If you or your crew members get injured on the job and you don’t have your own WC policy, NYSIF will charge the claim to our policy. Our carrier audits every year and retroactively bills us for any uninsured subcontractor payroll. A single injury claim can cost $50,000–$500,000+ and spike our experience modifier for 3 years.
• General Liability exposure: If your crew damages a client’s property — roof, driveway, fence, vehicle, power lines — and you don’t carry GL, the homeowner’s claim comes to us as the general contractor. One dropped limb on a car is $5,000–$30,000. A roof hit can be $20,000+.
• NY Construction Fair Play Act: New York presumes all workers on a job are employees, not independent contractors, unless you meet strict criteria including carrying your own insurance. If you’re working under our umbrella without your own policy, the state considers you our employee — and we owe WC, disability, unemployment, and payroll taxes on every dollar we pay you.
• NYSIF subcontractor monitoring: NYSIF actively monitors subcontractor relationships. During annual audits, they request a list of every sub used. Any sub without a valid COI on file = their payroll gets added to our premium at class code 0106 rates (~$9/$100). On a $10,000 sub job, that’s $900 in unexpected premium.
• Criminal penalties: Knowingly allowing uninsured workers on a job site is a misdemeanor in NY (up to $50,000 fine for first offense). With 5+ uninsured workers, it becomes a felony.

Bottom line: two options.

This isn’t about making extra money — it’s about not losing everything. One uninsured claim can shut down a tree company. We’ve seen it happen.