Commercial Insurance for Junk Removal Companies
Are you starting a junk removal business? Have you purchased insurance for your company? If not, it's very important to have commercial insurance to protect yourself and your company from liability and legal action. Whether you're removing trash, wood, unwanted furniture, large appliances, and electronics, your junk removal business will need commercial insurance.
It is important to educate yourself on the different types of insurance, this will ensure you are making the best decision to protect your junk removal business and assets. Being educated on the types of insurance needed for your state and your business can be a cost-saving move too.
Types of Insurance
BUSINESS OWNER'S POLICY (BOP)
A business owner's policy is a package of insurance policies wrapped into one. For your junk hauling business, you'll have a business owner's policy drawn up specifically for this type of company. Below are some of the problems/potential risks for which a business owner's policy offers protection:
Equipment failures: In order to move junk items that are large and heavy, junk removal companies require special machinery for this process. Unfortunately, equipment can fail and malfunction. For example, your trash compactor breaks. Instead of paying out of your pocket to repair it, a BOP can cover the cost of repairs or replacement.
Loss of electronic data: Common electronic files used by junk removal business such as customer contracts and subcontractor agreements can be corrupted or destroyed. Repairing or replacing these systems can be very expensive. BOPs are very beneficial in covering such costs.
Building repairs: Let's say your company experiences an extremely damaging fire. While you may be forced to close your building down for repairs, a business owner's policy can help cover the extra expenses. It can also compensate for the loss of income that occurs due to shutting down the company and an inability to serve clients.
BOP's typically include general liability and property insurance.
Anything can go wrong during the pickup process. General liability can protect you and your business from a broad range of unexpected problems, from damage to a customer's property to general repairs. For example, one of your trucks drop unwanted material onto a customer's property and causes damage. The customer's fencing is severely damaged and needs to be repaired. General liability insurance can cover these costs. Another example of general liability protection is paying for the medical costs when a customer is injured at your company's physical location. Your business can also be covered by general liability insurance if your junk removal company suffers financial loss due to fire and water leakage.
Commercial Property Insurance
Commercial property insurance covers the physical aspects of your junk hauling business such as office buildings, warehouses, and property fences. It also covers smaller assets on the inside of your building like office desks, file cabinets, tools, and other equipment. Commercial property insurance can protect your company from a loss caused by an accident, theft, or vandalism.
COMMERCIAL VEHICLE INSURANCE
Whether your junk removal company uses one vehicle or a fleet of vehicles, it's important to get commercial vehicle insurance. Your drivers run the risk of being involved in an accident, which could result in the harm of people and/or property. Without commercial vehicle insurance protection (your general business owner's policy won't cover vehicles), you and your company could face very expensive liability claims, which could possibly be enough to put you out of business.
If you own a junk removal company, then, chances are, your employees will have to lift some heavy equipment and could potentially be exposed to hazardous materials. This is why it's important to have worker's compensation insurance, in case an employee becomes injured or ill from working for your company. If you don't, you will be held liable for paying your employee's medical expenses and lost wages. You can also get in serious legal trouble for not having workers' compensation insurance. In most cases, having a workers' compensation policy will protect you from being sued.
It is required by law that your company has worker's compensation. The specific policies and details vary by state.
How To Get a Quote
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