Before delving into how insurance works for a dumpster rental business, it is important to have a clear idea of what the dumpster rental business is all about.
Basically, a dumpster rental business is a company that provides dumpsters for rent to individuals, businesses, and construction sites to temporarily store and dispose of various types of waste and debris.
These businesses typically offer a range of dumpster sizes to accommodate different project needs, from small residential cleanouts to large construction and demolition projects.
When anything happens to anyone as a result of your business activities, the person has the right to file for a claim, and that is where insurance policy coverage for the dumpster rental business comes into play. In general, an insurance policy protects your dumpster rental business from lawsuits and claims.
For example, if a customer or staff member gets injured within your business premises, or your dumpster gets damaged or falls off the truck and damages someone’s property, the insurance company will pay for the damages as long as the coverage is active, and premiums are paid regularly.
Best Insurance Policy for a Dumpster Rental Business
General Liability Insurance
General liability insurance offers liability insurance coverage that helps protect a business from claims that come as a result of bodily injuries, equipment damage, fire outbreak, or property damage to others within your business premises making general liability insurance cover highly suitable for a dumpster rental business.
Also, general liability insurance covers legal defense costs, including attorney fees, court costs, and settlements or judgments in lawsuits against your business.
Apart from the fact that a general liability insurance policy is essential for all businesses, in most jurisdictions in the United States, it is compulsory for businesses to have general liability insurance coverage.
Cost: On average, general liability insurance costs about $1057 annually or $88 a month in the United States.
Commercial Auto Insurance
Commercial auto insurance is important if your business owns or operates a fleet of vehicles for delivering and picking up dumpsters. Interestingly, you cannot operate a dumpster rental business without having delivery, and pickup trucks.
Basically, commercial auto insurance covers accidents, damage to your vehicles, and liability in case one of your drivers gets involved in an accident while on his way to deliver or pick up dumpsters, and of course, the driver must be at fault before commercial auto insurance can be activated.
Cost: Small businesses including dumpster rental businesses pay an average premium of $147 per month, or about $1,762 annually, for commercial auto insurance in the United States.
Commercial Property Insurance
The fact that you must have a warehouse or storage facility to keep your dumpsters means that it is mandatory to have commercial property insurance coverage for the business. A commercial property insurance policy covers damage to your business premises (your warehouse or storage facility), dumpsters, equipment, and inventory in and around the commercial property. Interestingly, some commercial property insurance policies can also cover your office equipment especially if the office is not in the same premises as your warehouse or storage facility.
Cost: Generally, commercial property insurance costs an average of $756 annually or approximately $63 per month in the United States.
Workers’ Compensation Insurance
The only reason why the owner of a dumpster rental business should not consider buying Workers’ Compensation Insurance is if they don’t plan to hire employees and want to run the business themselves.
Unfortunately, it is almost impossible for one person to run a dumpster rental business. In essence, if you have plans to hire employees to work for or with you, then you must make provisions for workers’ compensation insurance.
Besides, workers’ compensation insurance is typically required by law in the United States for all businesses that have employees.
Cost: The average cost of workers’ compensation insurance is $936 per employee, per year, or $78 per month in the United States.
Inland Marine Insurance
Inland Marine Insurance is a specialized form of insurance coverage that is designed to protect against the loss or damage of certain types of property or assets that are not typically covered by standard property insurance policies. Despite its name, Inland Marine Insurance has little to do with actual marine (ocean or water) exposures.
Instead, it primarily covers property that is movable or in transit, both on land and in some cases, temporarily stored off-site. It is particularly relevant for businesses that deal with property that frequently moves or is at risk of damage during transportation.
You can see that inland marine insurance perfectly fits into the dumpster rental business, and you should have a budget for it.
Cost: The cost of inland marine insurance coverage depends on the value of your business property, among other factors.
Small businesses pay an average premium of $29 per month, or about $350 annually, for inland marine insurance in the United States.
Each of the insurance policy coverage discussed above has limits they can cover, and as such if a catastrophic incident or a major lawsuit occurs, you can become stranded, and the business can become wrecked.
But if you have umbrella insurance, you can escape such incidents. An umbrella insurance policy provides additional liability coverage beyond the limits of your primary liability policies (e.g., general liability and commercial auto insurance).
For a dumpster rental business, an umbrella insurance policy is valuable when a natural disaster like a hurricane, or tornado et al strikes your business, or if your business is exposed to an incident that may lead to a major lawsuit.
Cost: The cost of commercial umbrella insurance varies based on your level of risk and how much coverage you buy, among other factors. Small businesses pay about $40 per month for each $1 million of umbrella coverage.
Environmental Liability Insurance
Come to think of it, dumpsters are used by individuals, businesses, and construction sites to temporarily store and dispose of various types of waste and debris.
Given the nature of waste and potential environmental impact, it is ideal for a dumpster business to subscribe to environmental liability insurance.
An environmental liability insurance policy helps cover the costs of cleanup and legal defense in case your business is held responsible for environmental damage caused by waste materials.
Cost: The average environmental liability insurance cost in the United States is $140 a month or $1,680 a year for a $1 million liability insurance.
Insurance Companies That Offer Such Policy Covers
XINSURANCE offers solutions to insurance for waste haulers and trash collection businesses. With XINSURANCE, you will have the customized coverage you need through their all-in-one approach.
By reviewing your operations and experience level, the company will provide insurance solutions made to fit your needs.
So no matter the situation, no matter the risk or history, they are here to help you take out the trash. Please note that XINSURANCE does not provide worker’s compensation.
2. NEXT Insurance
NEXT Insurance packages typically include General liability, Contractors’ E&O, Commercial auto, Workers’ compensation, Tools and equipment, and Commercial property. You can contact them to get a quote for your dumpster rental business.
3. The Hartford
Hartford is the 13th-largest property and casualty insurance company in the United States. It sells products through a network of agents and brokers and has also been the auto and home insurance writer for AARP members for more than 25 years.
The Hartford is known for offering tailored insurance solutions for small and midsize businesses, including those in the waste management and dumpster rental industry. The Hartford provides general liability, commercial auto insurance, and business property insurance.
4. Progressive Commercial
Progressive offers commercial insurance policies, including general liability and commercial auto insurance, suitable for dumpster rental businesses. Progressive Commercial provides customizable coverage options to meet specific business requirements.
5. Liberty Mutual
Liberty Mutual Group is an American diversified global insurer and the sixth-largest property and casualty insurer in the United States.
Liberty Mutual is a well-established insurance provider that offers a wide range of commercial insurance options, including general liability, property insurance, and commercial auto coverage, which can be suitable for dumpster rental businesses.
6. Travelers Insurance
Travelers Insurance is known for its commercial insurance offerings, including policies for contractors and waste management companies, but may also work with dumpster businesses.
If you need comprehensive coverage for liability, property, and equipment for your dumpster rental business, then you may want to consider Travelers Insurance.
CAN over the years as an insurance company has been at the forefront when it comes to providing commercial insurance coverage for a variety of industries, including waste management and dumpster rental businesses. CAN may offer customizable insurance solutions to address the specific risks of your business.