Insurance Coverage for Tree Workers / Companies. How much is enough? Interesting question, the first one I guess should be does my tree service contractor have insurance and if not what are the risks? Well, let’s look at some interesting fact we pulled up on internet. Now having said that, we have not been able to verify them.
“It should also be noted that the arborist job is listed as the 5th most dangerous job in North America. Adding to these statistics, a fact that: 87% of tree care companies do not properly train their employees* 65% of tree care companies are not properly or adequately insured** 93% of tree care companies do not carry workers compensation***” These are pretty sobering statistics. Are they right, maybe not, but regardless there is obviously a big gap in what is going on versus what you need! First let’s point out one important item, and it must be stressed that this is according to precedence of Ontario law as we have seen it in newspaper articles. It must also be noted that this is NOT for tree workers, but for any contractor on your property. If a contractor on your property causes damage or injury to you, somebody else, your property or your neighbours then the contractor’s liability insurance should cover it. That seems reasonable, however if they are not carrying insurance or inadequate insurance then your homeowner policy will come into effect. It should also be noted that the same may happen if they contractor has insurance, but is not covered for the particular work being performed. The same can be said of workers compensation, if a worker is injured onsite and there is not workers compensation, the homeowners policy may be required to cover the claim. Now we are not legal experts or advisers, but have been in discussion with lawyers and accountants who have stated this on many occasions. Therefore for our own purposes we are assuming this is accurate, and that we carry proper insurance coverage to cover you on all work. That being said, do all contractors carry adequate insurance? First it should be noted that the arborist job is the 5th most dangerous job in Canada, the article above states North America. However, Tree Canada had an article in 2011 which stated the same statistics for Canada. That being said, depending upon a company’s history, insurance can be expensive. Consequently some will choose to purchase small amounts of insurance, or maybe even forego insurance at all. The highest risks are with very small, individually run companies which are part time. Tree work, in particular removals, has a lot of part time works who are also performing a full time job. Many of this work as firefighters, hydro workers or police officers as full time jobs (as many of these jobs have flexible hours of work and provide time for employees to run side businesses). The major issue here is really twofold. First many of these individuals do not have adequate or professional training to perform many
of the tasks at hand. Secondly, because of the low volume of work performed many do not carry adequate insurance. When you consider a tree is very capable of taking out at least two homes at once, along with potentially vehicles, pool damage, etc the liability can be high. There have been tree damage claims well over one million dollars on record, which is why municipalities usually require a minimum of $5 million in coverage. Worker compensation is another item, which a huge number of tree workers do not have. Larger companies are almost always set up as incorporations, and one can be fairly certain that they carry proper workers compensation coverage for all employees. So how do you protect yourself? Fairly easy actually, but you have to know what to ask for. Let’s pick the three items on the list above, even though one is not related directly to insurance it can still have a very important and direct consequence on the safety employed and how well the job will be performed. Training – this can range from the safety of workers, to those of bystanders. And is usually what we think of. It can also however cover how well the job is performed, if proper and professional and current techniques are utilized for all tasks. Training can be provided by several companies, Aboriculture Canada being one of the largest in Ontario. A good basis to use to determine training is if the company has at least one ISA Certified Arborist on staff, as part of the certification process covers Tree Worker Safety. This relates to working in and around a tree, the equipment used in tree trimming or removals and the general safety or worksite and bystanders. A good way to ensure that this training is in place is to look for ISA Certified Arborists, as they not only have been trained but also must have ongoing training in place. Insurance – you can always ask if a person is insured, but how do you know that is correct. You can ask to see their policy, but how do you know it has not lapsed? There are only really a couple of ways to know for sure. • Ask for a Certificate of Insurance – this is provided by the broker directly to you • Check for TCIA (Tree Care Industry Association) Membership as TCIA verifies insurance and workers compensation coverage for all members. • Check for TCIA Accreditation – as this also provides verification of all three items. Workers Compensation – in Ontario workers compensation is not required by a single business owner, providing they DO NOT hire anybody else. However, many tree companies which are very small try to get around this and have themselves own a company and sub-contract out to a couple of others (each who have their own companies). The issue here is if a company hires a sub-contractor then either the subcontractor must be covered by their own workers compensation, or they must be covered by the one hiring them. If the sub-contractor is covered by their own workers compensation, then the hiring company must have a worker’s compensation clearance certificate. Unfortunately many do not even know they are breaking the law! We have a lot of information, now, what do you do? What can you do and what should you do? First you need to protect yourself and your property, from risk, harm and danger. This includes yourself, your family, property and neighbours. Keep in mind your property also includes your trees.
The first think you should do is find an ISA Certified Arborist. Start with companies who advertise ISA Certified Arborists. Then verify their claims, all ISA Certified Arborists must have their arborist certification number, and it should be displayed on their website (if they make claims of certified arborists on the site). If not check with the ISA International website, or call us. We would be more than happy to assist you in validating a credential, and showing you how. The second thing is to validate insurance and workers compensation. If the company is a member of TCIA then this is already done for you, relax. If no ask for their broker to send you a Certificate of Insurance, and for their Ontario WSIB (Workers Compensation) Account Number. If you need more, call us, we can help you verify WSIB accounts online with the account number. Verify the work the company is doing is listed on the Certificate, and ensure they have at least $3 million dollars of coverage, preferably $5 million. Finally, if you can find a company with a CTSP (Certified Treecare Safety Professional) then BONUS. This company is a member of TCIA, and has taken the level of training to the next level!! And the grand conclusion!! If you can find a TCIA Accredited company, look no further. This is essentially the absolute highest level of confidence in a tree company that exists. Currently there are zero accredited companies in Ontario. Good Luck, Keep Safe and Protect Yourself, Your Family and Friends!! www.simcoemuskokatreeservices.ca Simcoe Muskoka Tree Services Inc. Serving Simcoe County and Muskoka