The Risks of Hiring Uninsured Tree Service Contractors

If you have a large tree in your yard that covers your entire yard with its branches, this would be a very dangerous sign in a storm, so first choosing a tree service company that quotes you a very low price can be a detrimental mistake for homeowners, especially when they do not have adequate insurance to cover the damage. See our guide on how big a tree has to be before removal gets complicated and pricier.

Why Insurance Matters in Tree Work

In Canada, several jobs are dangerous, such as tree removal and trimming. So it is very important to hire an insured tree removal company because workers often work in dangerous situations, such as climbing to great heights and handling heavy equipment like chainsaws.

If you don’t want to bear high expenses, it is very important to hire insured tree removal companies in case of accidents.

The Hidden Costs of “Saving Money”

If you are hiring an uninsured contractor who is charging less than others, they are not doing any favors, and you are taking on a huge risk. So, below we discuss what you are liable for when you hire one of these contractors in Alberta.

Personal Liability for Worker Injuries

You’re liable when any worker falls from a tree on your property during work, if he’s not insured, you will cover his injuries, sufferings, wages and medical bills, which will cost you hundreds of thousands. There is healthcare covered in Canada, but these claims are still very costly.

You will face consequences because homeowner’s insurance may not cover workers’ injuries working on your property, especially when you hire someone who does not have proper WCB (Workers Compensation Board) coverage.

Property Damage Without Recourse

You may face property damage, such as roof damage, car damage and fence demolition, when removing a tree. Heavy equipment can damage driveways and underground utilities during freezing winds in Calgary.

If you don’t want to pay bills that are likely caused by damages from an uninsured contractor, hire an insured one to prevent this.

Damage to Neighboring Properties

You could face disputes with neighbors and expensive legal battles when your tree falls on a neighbor’s property while doing tree work and your tree company is not insured. The neighbor’s insurance company will charge you for the cost.

Incomplete or Abandoned Work

An uninsured contractor will abandon the job halfway, leaving the property in a dangerous condition. They work on thin margins; therefore, they do not carry any bonds or insurance.

No Professional Standards or Accountability

Uninsured companies do not carry insurance, which is why they do not meet certain standards. Professional companies have proper equipment, training and established businesses. Look for someone with ISA certification as an additional standard to check for.

What Insurance Coverage Should Calgary Tree Contractors Have?

Always verify the company before hiring them; don’t trust their words.

• WCB (Workers’ Compensation Board) Coverage: required in Alberta for businesses with employees, covering medical costs and lost wages if workers are injured on the job.
• Commercial General Liability Insurance: It covers third-party property damage and bodily injury, typically up to $2 million.
• Commercial Auto Insurance: covers business assets, such as vehicles and equipment used in work.

A credible contractor will easily provide current insurance certificates, which you can check directly from the insurance company and a WCB clearance letter, which can be checked at wcb.ab.ca.

The False Economy of Low Bids

Uninsured companies always bid lower because they don’t pay for insurance or WCB coverage, so most likely you are not paying less, but you are taking the risk that nothing will go wrong.

The best or most economical choice is to pay a bit more for an insured contractor or tree removal company rather than an uninsured one, which could cost you hundreds of thousands of dollars in the event of an accident. See our guide on tree removal services cost, process and what to ask to understand what a fair quote looks like.

Red Flags That a Calgary Contractor May Be Uninsured

These warning signs will help you identify an uninsured contractor:

• Refuses to provide proof of insurance or WCB clearance
• Mostly bids lower than other contractors in Calgary.
• Demands only cash payments
• Only have an online presence, no physical business.
• Pressuring to start work without a written contract.
• Hesitates to provide references or past project locations.
• Don’t have marked personal vehicles.
• Don’t have a GST number or business license.

Protect Yourself: Due Diligence Checklist for Calgary Homeowners

Always check before hiring a service contractor in Calgary:

1. Request and verify current insurance certificates and WCB clearance
2. Check their WCB account status at wcb.ab.ca using their account number.
3. Contact insurance companies to confirm coverage is active
4. Verify business registration with Alberta Corporate Registry.
5. Read Google reviews and check local Calgary forums.
6. Get at least three written estimates from different contractors.
7. Ensure you have a detailed written contract.
8. Never pay the full amount upfront (10-30% deposit is standard)
9. Verify the contractor’s physical business address in Calgary.
10. Ask for references from recent Calgary projects.

Calgary-Specific Considerations

In Calgary, there are conditions that make proper insurance more critical:

• Chinook winds can create unpredictable conditions during tree removal.
• Mature tree canopies in established neighborhoods like Mount Royal, Elbow Park and Britannia require experienced professionals.
• Power line proximity in older Calgary communities increases the risk of electrocution.
• Winter tree removal requires specialized equipment and training.
• City of Calgary permits may be required for some tree work; licensed contractors know the requirements.

The Bottom Line for Calgary Homeowners

Every Homeowner in Calgary should avoid taking a risk of hiring an uninsured tree removal company, because their homes are their largest investments and they want to protect them by hiring properly insured and WCB-covered companies.

Verifying Insurance before hiring a tree removal company is your first priority to avoid future disputes.

Ready to find a fully insured, WCB-covered tree service professional in Calgary? Our verified Calgary tree service professionals carry proper insurance and WCB coverage, ensuring customer satisfaction. Get a free Quote now to get professional tree removal services from Calgary Tree Works.