California employers are required by law to have workers’ compensation insurance, even if they have only one employee, according to the state Department of Industrial Relations, and that includes a tree service with a crew. For tree work, the Workers’ Compensation Insurance Rating Bureau of California classifies the operation under 0106, Tree Pruning, Repairing or Trimming, and the classification and payroll together drive the premium.
This guide stays on workers’ compensation: the requirement, the official class descriptions, how premium is computed, and what the Contractors State License Board asks of licensed tree contractors. It states no premium rates, because rates change and depend on your classification and payroll. For the full California insurance picture, see our California cost guide and our California tree service insurance page. To price your crew, request a quote.
The California Requirement
The Department of Industrial Relations explains that workers’ compensation is a trade-off: employees receive medical treatment for on-the-job injuries no matter who is at fault and, in return, cannot sue employers over those injuries. Its employer information page states that, as a result, California employers are required by law to have workers’ compensation insurance, even if they have only one employee.
For a tree service, where climbing, chainsaws, and falling wood are daily facts, that coverage is the policy that pays medical care and wage benefits when a crew member is hurt. Our general guide explains whether tree service contractors need workers’ compensation in more detail, and our workers’ compensation coverage page describes the policy.
The WCIRB Class for Tree Work
California classifications are published by the WCIRB. Its classification entry for tree work gives the title as 0106, Tree Pruning, Repairing or Trimming, and states that the classification applies to pruning, repairing or trimming trees or hedges when any portion of the operations requires elevation, including but not limited to using ladders, lifts, or climbing.
The entry also says the classification includes cleanup, chipping, or removal of debris; stump grinding or removal and tree spraying or fumigating performed in connection with tree pruning, repairing or trimming; and the removal of trees that retain no timber value. Notice what that means for a typical California tree company: ground crews, shop and yard work, chipping, and many removals fall under the same classification as the climbers.
Work That Is Classified Somewhere Else
The same entry carves out four situations:
- Commercial timber harvesting is classified as 2702(1), Logging.
- Land clearing, including the removal of trees in connection with it, is classified as 2702(2), Land Clearing.
- Stump grinding performed for other concerns on a fee basis and not in connection with tree pruning, repairing or trimming at a particular job or location is classified as 3724(1), Millwright Work.
- Pruning, repairing or trimming when none of the operations at a particular job or location require elevation is separately classified as 0042, Landscape Gardening.
Those boundaries matter at audit. A crew that never leaves the ground on a given job is treated differently from one that climbs or uses a lift, and a stump-grinding business that does no pruning is classified differently from a tree service. Describe your actual work to your agent and ask which classification applies to each type of job.
How 0106 Compares With the National Class Code
Our class code 0106 guide explains the code from a national, NCCI angle. California uses the same four-digit number, but publishes its own wording through the WCIRB. We have not compared the national and California wording line by line here. For a California policy, the WCIRB text quoted above is the one to read, and your agent can confirm how your policy words the classification.
How the Premium Is Computed
The WCIRB states that one of the primary components of the rate an employer pays is determined by the classification code or codes to which its payroll is assigned. It also states that, other than specific exceptions in the California Uniform Statistical Reporting Plan, all money and substitutes for money earned during the policy period by covered employees and officers is included as payroll in the premium computation, including gross wages, salaries, commissions, bonuses, and overtime payments. Its payroll reference page lists how common types of pay are treated.
In plain terms: your classification and your payroll are the two inputs you control the accuracy of. Keep payroll records by role, so climbers, ground crew, and any office staff can be assigned correctly. We do not publish rates here, and a quote from your agent is the way to see what a policy costs for your payroll.
What CSLB Asks of Licensed Tree Contractors
If you hold a California contractor license, the Contractors State License Board adds its own workers’ compensation rules. Its licensing guide says contractors with employees must submit proof of workers’ compensation insurance or a certificate of self-insurance from the Department of Industrial Relations, while contractors without employees must submit an exemption.
CSLB’s exemption page says you cannot be exempt if you have employees or if the qualifier is a responsible managing employee, and it lists the C-61/D-49 Tree Service classification among those that cannot use the exemption. The guide says those contractors must carry coverage whether or not they have employees.
One point needs care. CSLB’s classification list shows D-49 Tree Service as now under C-49, but the exemption wording on both pages names C-61/D-49 and does not mention C-49. We cannot tell you how CSLB will apply it to a C-49 licensee, so confirm with CSLB and your agent before filing an exemption. Our guide to the C-49 license in California covers the broader license requirements.
Practical Steps for a California Tree Service
- Keep payroll records by job role and update them each term.
- Tell your agent about removals, stump grinding, and any ground-only jobs, so each is classified correctly.
- Collect certificates from subcontractors; our cheap tree service insurance guide explains why this protects your premium.
- If you are licensed, make sure the proof of coverage CSLB has on file matches your policy.
- Review the program as a whole; our guide to tree service insurance requirements shows how customers check coverage.
Frequently Asked Questions
Do California tree service companies need workers’ compensation?
The California Department of Industrial Relations states that California employers are required by law to have workers’ compensation insurance, even if they have only one employee. A tree service with crew members is an employer. Separately, the contractor licensing board has its own proof-of-coverage or exemption rules for licensed contractors, covered below.
What is the California workers’ comp class code for tree trimming?
The WCIRB classification is 0106, Tree Pruning, Repairing or Trimming. It applies when any portion of the operations requires elevation, such as ladders, lifts, or climbing. Pruning when no operation at a job requires elevation is separately classified as 0042, Landscape Gardening. Confirm the wording on your own policy with your agent.
How is workers’ comp premium calculated for a California tree service?
The WCIRB explains that the classification code assigned to payroll is a primary component of the rate, and that employee and officer earnings, including wages, overtime, and bonuses, count as payroll in the premium computation. This guide does not state rates. Your agent can quote them from your classification and payroll.
Does tree removal fall under the same California class code?
The WCIRB says 0106 also applies to the removal of trees that retain no timber value, along with related cleanup, chipping, and stump grinding done in connection with pruning. Commercial timber harvesting and land clearing are classified elsewhere. Describe your removals to your agent so the policy classification matches the work.
Can a California tree contractor claim a workers’ comp exemption?
CSLB’s exemption page says you cannot be exempt if you have employees, and it lists C-61/D-49 Tree Service among classifications that cannot use the exemption. CSLB’s own wording does not mention C-49, so confirm with CSLB and your agent before you file anything, especially if you are a sole owner.
The Bottom Line on Workers’ Comp for California Tree Service Companies
California requires employers to carry workers’ compensation, and tree work is classified under WCIRB 0106 with defined carve-outs. Keep payroll records accurate, describe each type of job, and check CSLB’s rules before relying on any exemption.
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