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What is junk removal insurance?

Junk removal insurance is a set of coverages designed to protect your company from the unique risks associated with junk and debris removal. Whether you work with individual homeowners, contractors, or other organizations, this coverage safeguards your business.

Hauling items is hazardous work, and property damage, employee injuries, and vehicle accidents are common risks. The right insurance coverage ensures that a single mishap doesn't jeopardize your business's financial stability, providing peace of mind and allowing you to focus on doing the best job you can.

What junk removal insurance includes

Junk removal insurance would typically cover you in the following areas:

• Commercial general liability (CGL): Also known as ‘slip-and-fall’ coverage, this is essential. It protects your business if you are found legally liable for bodily injury to a third party or damage to their property. For example, if an employee accidentally damages a client's wall while moving a heavy item, this protection would cover the repair costs.
• Commercial property: This protects your physical assets, such as your office, storage units and equipment (like dollies and tools), from risks like fire, theft or vandalism.
• Tools and equipment: This covers the repair or replacement of essential tools and equipment, whether they’re lost, damaged, or stolen. The coverage is offered regardless of whether your tools and equipment are in storage, at a client’s location or in transit on a vehicle.

Recommended add-ons for junk removal insurance coverage

While the basic coverage may seem comprehensive enough, there are numerous other protections that you may want to consider, including these:

• Professional liability: Also called errors and omissions (E&O) insurance, this protects you from claims pertaining to professional errors or negligence, during or after the work is completed. For instance, if, after your work is completed, a client claims that your junk removal work wasn’t thorough enough, having resulted in financial losses for them, you might be facing legal action. Your E&O insurance would cover the costs associated with the claim and potential lawsuit.
• Commercial auto: Your personal car insurance will not cover accidents that happen while performing business activities. This policy covers your trucks and other vehicles used for junk removal.
• Pollution liability: This covers cleanup costs and liability claims if you transport hazardous materials, like old paint or electronics, that cause contamination.

Common types of junk removal insurance claims

Here are some examples of the kinds of claims junk removal businesses tend to file:

• Third-party property damage: While removing furniture from a home, you accidentally scratch your client's hardwood floor, necessitating pricey repairs. Your general liability coverage would help you cover those, including any legal fees.
• Auto accident: While travelling to a dumpsite, your truck collides with another vehicle, and you (or your employee or subcontractor) are deemed at fault. Commercial liability insurance would pay for the damage caused to the other vehicle.
• Improper disposal: You dispose of hazardous waste at an unauthorazied dumpsite, causing the local authorities to fine you. Such fines are typically thousands of dollars, meaning that they can make a big dent in your earnings. That’s where pollution liability coverage can come in handy.

How much does junk removal insurance cost?

There’s no flat rate that we can quote when it comes to junk removal insurance, given how customizable your coverage can be. That said, depending on the size of your junk removal business, your premiums may range from $700 to $2,000 per year.

Some of the factors that may impact your insurance premium include:

• Type of coverage: Basic policies with standard coverage will cost less than comprehensive policies with multiple add-ons.
• Coverage amount: The higher the coverage limits on your policy, the more you will have to pay.
• Location: Rates differ between provinces and individual districts due to factors such as crime, claim frequency and so forth. If you work in a high-theft area, your equipment is more likely to be stolen, which can increase your premiums.
• Business size and revenue: The bigger your junk removal business is, which includes your revenue and team size, the more expensive your insurance will be.
• Experience level: If you’ve been in business for a long time and you have a stellar track record, then you’re likely to qualify for better rates.
• Claims history: If you have recently filed a claim, then there is a high chance that you’ll file another one in the future. Insurers take this into account and adjust their premiums accordingly. As you might expect, more claims in the past equal to higher premiums in the future.

How to get the cheapest junk removal insurance rates

Finding cheap junk removal insurance doesn’t mean you have to compromise on coverage. Here are some tips to get the best rates:

• Shop around: Don't settle for the first offer. Comparing quotes from multiple providers is the best way to ensure you're getting a competitive rate.
• Bundle policies: Combining CGL and commercial auto coverage with the same provider can earn you discounts.
• Increase your deductible: Choosing a higher deductible reduces your premium. However, make sure that you can comfortably afford the out-of-pocket expense if you need to file a claim.
• Maintain a good record: A track record of safety and few-to-no claims can lead to lower premiums over time.