Do you want to know the cost to insuring a pressure washing business? If YES, here are 7 best general liability insurance policies for pressure washing businesses. Power washing businesses are known to clean the exteriors of buildings, structures, or other objects by shooting pressurized water against the surfaces to remove dirt, dust, loose paint, mildew or mould.
Some pressure washers have detergents added to the water stream, either from the water holding tank or as the water leaves the pump. Operations are generally conducted off premises at job sites. Pressure washers are known to work with pretty powerful equipment.
The high-powered machines transform water into a powerful force that can remove mould, mildew, paint, and even concrete from surfaces. These businesses also provide their pressure washing services to a wide range of clients and they may have a commercial space that they work out of and employ a crew, too.
Do Pressure Washing Businesses Need Insurance Cover?
The answer is YES! No matter the amount of effort you make to ensure that you are using the safest strategies and that you are providing the best services, accidents can still happen. For instance, a member of your crew could shatter windows while pressure washing the side of a building, or someone could trip and fall over your equipment while you are in the middle of a service.
Note that when these types of incidents happen, you are responsible for any damages. You also have to consider the fact that someone could file a lawsuit against you at any time; for example, someone might allege that you failed to complete a service you said you would provide. Be it true or not, the cost of hiring a legal team to defend you could be astronomical.
Have it in mind that if you are faced with incidents like these – or others, you could end up in serious financial trouble. The cost of repairing damages, medical bills, and legal fees can be quite expensive, to say the least, and having to pay for these expenses out of your own pocket can potentially bankrupt you.
However, with the right pressure washing business insurance, you can avoid the financial turmoil because instead of paying these expenses out of your own pocket, your insurance company will help to cover the cost. Howbeit, insurance safeguards you from financial devastation, which is exactly why it is one of the most important investments you can make for your pressure washing business.
6 Necessary General Liability Insurance Policies for a Pressure Washing Business
Have it in mind there are numerous factors that will ultimately affect the type of insurance that pressure washing businesses need to carry. These factors include the location the business operates from, the size of the business, and the specific types of services the business provide. Nonetheless, with that said, there are specific forms of coverage that all power washers need:
- Coverage Amount: $2 million
- Annual Premiums: $350 to $800
If as a result if a job a client sues your business claiming that you damaged their property while you were pressure washing, whether or not you did, you will incur some costly fees. The cost of hiring a legal defence team in and of itself is high; coupled with the fact that you may be held liable for the damages and have to cover the cost of the repairs and possibly additional damages.
Note that commercial generally liability insurance will protect you from this type of situation, and other similar scenarios, especially, because it offers protection for third-party injury and property damage claims.
2. Commercial Equipment
- Coverage Amount: $10,000 to $100,000
- Annual Premiums: $380 to $1,000
In the power washing business, you are bound to rely on much equipment to get the job done, and it will probably cost you a good sum, too. Additionally, you move it around from location to location; it is stored at your shop, it is transported in your commercial vehicles, and it is on the job site, too. Irrespective of where your equipment may be, if it is damaged or stolen, commercial property insurance will pay to repair or replace it.
3. Workers Compensation Insurance
- Coverage Amount: $500,000
- Annual Premiums: $2,000 to $4,200
Note that if you employ a crew of 15 people or you only have 3 employees working for you, you are also going to need to invest in workers’ comp insurance. In the United, or during the cause of your business operation an employee suffers an injury or illness, the provider of this type of policy will cover the cost of any necessary medical care, as well as wages the employee loses while he or she is unable to work.
4. Commercial Auto Insurance
- Coverage Amount: $1 million
- Annual Premiums: $1,500 to $4,200
Note that even if you have a personal auto insurance policy, you are still going to need to carry commercial auto insurance. Why? – Because your car’s personal policy excludes vehicles that are used for business. If you or an employee is involved in an accident while travelling to a job site, this type of coverage will pay for any damages that may occur.
5. Inland Marine Insurance
- Coverage Amount: $10,000 to $100,000
- Annual Premiums: $180 to $1,500
Inland marine insurance is a kind of property coverage that follows your equipment as it moves between work sites or is stored in an off-site facility. Commercial property insurance only covers items at the location listed on the policy.
Aside from covering your business’s physical assets away from your main location, inland marine acts much like commercial property. It covers similar perils, such as fire, wind, theft, and vandalism, and it can be written on an actual cash value or replacement value basis.
6. Umbrella Insurance
Umbrella insurance extends the limits of your other liability policies, which means it picks up where the others fall short. For example, if you have a general liability limit of $400,000 but your power washing business has legal fees of $450,000, umbrella insurance covers the remaining $50,000.
- Coverage Amount: $1 million
- Annual Premiums: $400 to $1,500
7. Business Owner’s Policy
- Coverage Amount: $2 million
- Annual Premiums: $750 to $1,300
How to Get General Liability Insurance Coverage for a Pressure Washing Business
Acquiring the right Power washing insurance for your business can be a relatively inexpensive way to protect against a loss so severe it puts you out of business. If you need reliable coverage for your power washing business, below are steps to consider.
a. Know your risks and what you need
Your clients or even employees can slip on wet floors, be accused of theft or incomplete work, and damaged equipment are just some of the many risks power washing businesses face daily. Acquiring the appropriate insurance policies should be the cornerstone of your risk management strategy.
b. Consider the deductibles
Note that when choosing your cleaning business insurance policies’ deductibles, think about how much you can comfortably afford to pay out of pocket if you file a claim. Have it in mind that policies with higher deductibles have lower premiums but can cause financial stress during the claims process. Policies with lower deductibles typically charge higher premiums but ensure that you will pay a smaller amount if you file a claim.
c. Overestimate your coverage needs
In the United States, many small cleaning companies operate on tight budgets, and it can be tempting to buy the minimum insurance coverage to save money. However, keep in mind that lawsuits can cost hundreds of thousands of dollars, so it is safe to have more coverage than you think you will ever need.
You should also consider bolstering your coverage with umbrella insurance, which is also known as excess liability insurance. This supplemental policy kicks in after your business reaches the limits of its liability coverage and can help protect you from paying the costs of an expensive lawsuit out of your own pocket.
d. Carefully read the fine print in your policy and ask questions
Note that less expensive power washing business insurance policies may come with terms such as limited coverage, delayed payouts, or low premiums that increase later. So, when acquiring insurance, carefully read the policies to ensure there are no gaps in your coverage so there will be no surprises if you file a claim. If you are unsure about any terms, ask your insurance agent to clarify them before you sign.
How much does it Cost to Get the Best Insurance Policies for a Pressure Washing Business
Your pressure washing business insurance cost is the sum of all your yearly premiums. Nonetheless, businesses with similar insurance needs can end up paying different rates because insurers look at a variety of factors to determine premium.
Best Companies and Providers That Offer Affordable Insurance for Pressure Washing Businesses
When you are looking for pressure washing business insurance, you have two options: work with a broker or go directly to the carrier. Each has its advantages, so our list includes both.
Travelers provide a pressure washing business owner’s policy that automatically includes $25,000 of coverage for employee dishonesty. Note that this valuable inclusion makes Travelers the ideal choice for business owners who want an affordable BOP and coverage for an employee’s criminal behaviour. Travelers also offer coverage to new ventures, making it a great option for start-up cleaning businesses.
ii. Simply Business
This is another online reputable insurance broker that can give pressure washing business owners multiple quotes after they complete just one application. Its application is simple, and the quotes come within minutes and include a breakdown of the coverage details.
Although Simply Business can offer both general and professional liability policies to cleaners, the company is an ideal choice for cleaning businesses with high-risk operations, like pressure washing. Simply Business partners include carriers that can write policies for these hard-to-insure businesses.
Markel is well known as a specialty insurer that offers strong options for cleaning contractors because of the broad range of policies it offers. Cleaning contractors can go to Markel for commercial property insurance that includes equipment breakdown coverage.
They can also tailor their coverage with endorsements to cover debris removal, outdoor signs, and pollutant cleanup. Markel also offers inland marine and commercial crime insurance, as well as liability coverage for janitorial service businesses.
This company is better known as an online insurance broker that helps businesses get quotes from more than one carrier through a single application. This makes it ideal for business owners who want to shop around for the right coverage without spending a ton of time completing applications with different insurers.
A Pressure Washing Business can get a business owner’s policy (BOP) and workers’ compensation starting at $39 per month, plus they can choose from a wide array of other key coverages like inland marine and commercial auto. Surety bonds are also available through CoverWallet.
Whether you work on exteriors, interiors, or both, pressure washing business owners should extensively consider Hiscox for a straightforward online experience and affordable coverage. The company identifies the cleaning industry as a top industry, which means it has experience with cleaning business risks and can offer quality protection at a competitive price.
General liability insurance from Hiscox starts at $350 per year or $22.17 per month, and business owners can opt for a monthly payment plan for no extra charge.