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Company insurance is intended to safeguard the financial assets of a business owner and is a crucial investment for a bespoke treehouse business.

Company insurance is intended to safeguard the financial assets of a business owner and is a crucial investment for a bespoke treehouse business.

This article will discuss the primary insurance coverage for custom treehouse firms, general liability insurance, as well as additional products that are appropriate for this industry.

Custom Treehouse Businesses Need General Liability Insurance

Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.

General liability insurance covers the following risks:

Physical harm

Damage to property

Medical expenses

Legal defence and decision

Personal and commercial harm

While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.


Example 1: A client enters your business, and while unloading a truck, an employee damages the customer’s automobile. The expense of fixing the customer’s automobile would be covered by general liability insurance.

Example 2: A youngster sustains an injury from a nail protruding from one of your treehouses. The child’s medical care would be covered by general liability insurance.

Example 3: A construction firm in another county believes your company name is identical to its own and sues you for copyright infringement. Your legal expenses in fighting the case would be covered by general liability insurance.

Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.

General Liability Insurance Cost

Custom treehouse firms in America typically pay between $300 and $800 per year for $1 million in general liability insurance.

The cost of your coverage will be determined by a number of variables. Among them are your:



Employees’ number

Per-occurrence restriction

The overall aggregate limit

You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.

Other Types of Coverage Required by Custom Treehouse Businesses

While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all custom treehouse companies should have are listed below.

Insurance for Commercial Property

If you own your administrative and production buildings, commercial property insurance protects them against a number of catastrophes such as theft, vandalism, and harsh weather. It covers the cost of repairing or replacing the physical structure of your building(s), as well as the cost of repairing or replacing any equipment and items stored within.

Insurance for Workers’ Compensation

Workers’ compensation insurance is required in most states for both part-time and full-time employees. This coverage covers your workers if they are hurt at work or get sick as a result of a workplace accident. It covers not just an employee’s medical expenditures and missed pay if they need time off to recuperate, but also any disability or death benefits resulting from a work-related accident.

Insurance for Product Liability

Product liability insurance protects items that are faulty or hazardous. If someone claims that a flaw in one of your bespoke treehouses hurt them, for example, product liability insurance would cover your legal expenses as well as any resulting damages.

Insurance for Professional Liability

If you advise consumers on the best sort of treehouse for their property, there is always the possibility that they may sue you if you make a mistake or fail to give important information. If you convince a client that a treehouse would not harm their tree, for example, professional liability insurance will cover any connected expenditures as well as your legal fees if they sue.

Insurance for Commercial Vehicles

Any car used mainly for business by you or your workers needs commercial auto insurance to safeguard the vehicle, driver, and others on the road in the case of an accident. Choose a policy that covers not just accident-related vehicle repair expenses and medical care for anybody harmed, but also enough coverage for any company equipment or supplies you transport in your cars.

Coverage Options for Custom Treehouse Businesses

In addition to the insurance listed above, your custom treehouse company may need other forms of coverage based on specific features of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.

Umbrella Insurance for Businesses

While most claims are covered by your general liability insurance policy, certain incidents or lawsuits may be so severe that they threaten to deplete the limits of your main coverage. Commercial umbrella insurance protects you from having to pay for legal expenses and awarded damages that exceed the limits of your main policy out of pocket.

Additional Security Measures for Your Company

Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.

With this in mind, here are a few steps you can take to better secure your company:

Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)

To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)

Keep your company licences up to date.

Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.

If your company is an LLC, you should check into LLC insurance.