Yes, it will damage the cable and cause you problems if not fixed. Not just to the cables, it might start a fire with the tree if dry, etc.I do not want to remove the limb. Am I right to worry that the insulation on the line will be damaged by movement due to wind?
But listen to @Megawatt 's advice and contact the supply company - he is one of the well-regarded USA members of this (predominantly UK) electrical forum so knows the rules applying to your situation better than any of us.