Quick answer: A Florida tree-service company is at the center of a federal coverage dispute after a tree it cut allegedly caused a fire with about $2 million in damage. Its insurer, an Ohio-based company, asked a Florida federal court to declare that it does not have to defend the contractor. The case is a reminder that general liability insurance for Florida contractors is only as strong as the policy wording, the application answers, and the notice given after a loss.
What Happened in the Florida Tree Service Fire Case?
According to a Law360 report published September 15, 2025, the insurer filed a declaratory judgment action in the U.S. District Court for the Middle District of Florida. It asks the court to rule that it has no obligation to defend the tree service in an underlying lawsuit tied to the incident. The tree service was reportedly cutting down a tree when a fire started, causing roughly $2 million in damage. A funeral services business connected to the matter is also named as a defendant in the insurer’s suit.
These are allegations and requests in a court filing, not a final ruling. We have not seen a decision, and the facts may be disputed. The case is useful as a real-world example of how quickly a liability claim can turn into a second fight over whether coverage exists at all.
What Is a Declaratory Judgment Action in Insurance?
A declaratory judgment action asks a court to decide the rights and duties of the parties under a policy before or while the underlying claim proceeds. Insurers file them when they believe a policy exclusion, a late notice, or a misstatement means they owe no defense or indemnity. In Florida, the duty to defend is generally decided by comparing the allegations in the complaint with the policy language, so wording matters a great deal. For general background, see the Florida Office of Insurance Regulation and the Florida Department of Financial Services consumer resources.
Why Contractor Liability Coverage Gets Disputed
- Classification and operations: Policies are priced for the work described on the application. Tree removal near structures, crane work, or burning debris can be rated and treated very differently from routine landscaping.
- Exclusions: Contractor policies may carry exclusions or limitations for certain hazards, subcontracted work, or particular operations.
- Late notice: Waiting to report an incident can give an insurer grounds to contest coverage.
- Inadequate limits: Even when coverage applies, a $1 million per-occurrence limit may not cover a $2 million loss. Read our guide on how low insurance limits can bankrupt your business.
What Florida Contractors Should Do Now
- Describe operations accurately. List every service you perform, including high-risk work, on your application and at each renewal.
- Review exclusions with your advisor. Ask specifically about fire, subcontractor, and hot-work or equipment-related limitations.
- Carry umbrella or excess liability. Property fire losses can exceed primary limits quickly.
- Report incidents immediately. Notify your agent and carrier as soon as an incident occurs, and send suit papers right away.
- Collect certificates of insurance from subcontractors and confirm they name you as an additional insured where appropriate.
What Property Owners and Managers Should Check
If you hire contractors, verify their coverage before work starts. Ask for a current certificate of insurance and confirm the limits, but remember a certificate is not the policy. Require additional insured status and check your own property policy for how a third-party-caused fire loss would be handled. Condo and community associations in particular should review vendor requirements; our overview of Florida condominium association responsibilities is a good starting point, and our post on hurricane contractor fraud covers vetting vendors after a storm.
Frequently Asked Questions
What is the duty to defend in a Florida liability policy?
It is the insurer’s obligation to provide a legal defense when a lawsuit alleges facts that may fall within coverage. It is usually broader than the duty to pay a judgment.
Can an insurer deny coverage after a fire loss?
Yes, if it believes an exclusion, a policy condition, or a misrepresentation applies. Policyholders can dispute the position, and courts decide the outcome.
Does general liability insurance cover fires a contractor causes?
Often it can cover property damage to others caused by covered operations, but exclusions, classification issues, and limits can change the result.
How much liability insurance should a Florida contractor carry?
It depends on the work and contracts. Many contractors pair a primary liability policy with umbrella limits. A licensed advisor can size coverage to your exposure.
Review Your Contractor Insurance With Highlight Risk Services
Do not wait for a claim to learn what your policy says. See what we do, meet our team, explore more on our blog, or contact Highlight Risk Services for a coverage review.
This article is for general information, discusses allegations in a pending court matter, and is not legal or insurance advice.
Source: Law360: Insurer Asks Court To Deny Fla. Tree Co.’s Coverage After Fire.