Construction Cleanup Business Insurance
Every construction cleanup business needs insurance. Knowing which type of insurance you need and the best place to get it is the next step.
This article will cover the main types of business insurance and help you find the best construction cleanup business insurance.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Construction Cleanup Business
The most common and comprehensive type of construction cleanup business insurance is general liability insurance. We recommend general liability insurance as your first line of defense against a variety of the most general and commonly occurring claims.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
While a construction cleanup business isn’t legally required to carry general liability insurance, operating without it is extremely risky. If your construction cleanup business is sued, you could face fees totaling hundreds of thousands of dollars (or more).
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Cost of General Liability Insurance
The average construction cleanup business in America spends between $500-$1,500 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a construction cleanup business to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Common Situations That General Liability Insurance May Cover for a Construction Cleanup Business
Example 1: An employee uses the wrong chemical during clean up, causing extensive damage to the newly completed building. A general liability insurance policy will help to cover the costs of replacing the damaged materials, up to your policy limits.
Example 2: A visitor to the construction site trips and falls over the vacuum cleaner power cord while your employee is vacuuming a room. The visitor sustains injuries and requires medical care. Your general liability coverage will cover the costs of medical treatment for the injured party.
Example 3: One of your competitors decides to sue your company for libel based on an advertising campaign you recently ran. Your general liability policy should provide protection for personal liabilities such as libel, which means it should help cover the costs of defending yourself from the legal action of your competitor and the cost of paying a settlement if necessary.
Other Types of Coverage Construction Cleanup Businesses Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Workers’ Compensation Insurance
The laws in your state most likely require you to carry workers’ compensation coverage if you have employees working for you. There are several benefits of carrying workers’ compensation insurance, including covering medical bills for the treatment of work-related injuries for your employees and helping to cover lost wages for injured workers. It can also help pay for the medical care of workers who become ill due to their job.
Commercial Auto Insurance
Getting your employees, equipment, and supplies to the work site requires one or more company vehicles. Any vehicle used primarily for your business needs to be covered by commercial auto insurance. With this coverage, you have protection in the event of an auto accident. Your coverage will help pay for the repair or replacement of the vehicle, as well as medical care for injured employees and third parties.
Commercial Umbrella Insurance
Sometimes the limits of your general liability insurance may be exceeded, such as in an event where your company loses a lawsuit and is required to pay extensive damages. Commercial umbrella insurance is designed to start paying when the limits of your general liability policy are reached. It covers the extra expenses up to the limit of your umbrella policy.
Commercial Property Insurance
In the event of an accident, such as a fire, you could lose a large majority of your cleaning equipment and supplies. The cost of replacing these could be significant. Commercial property insurance will help cover these costs so you can get back to work as soon as possible.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your construction cleanup business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Construction Cleanup Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
You should invest in business insurance coverage for your business before your first interaction with a customer. Although the cost of insurance may seem high for a brand new business, it’s best to be proactive when it comes to protecting your assets. After all, you can’t buy insurance to cover a loss that has already occurred.
Not necessarily. Certain exceptions may be written directly into your construction cleanup business insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.