Last Updated: May 30, 2024, 1:09 pm by TRUiC Team

Junk Removal Business Insurance

Getting insurance for your junk removal business is essential.

Junk removal businesses need to be protected against claims of things like violations of environmental regulations, negligence, and property damage.

For example, you accidentally break a piece of furniture while removing junk from a customer’s house, or a neighboring property claims that you damaged their premises while moving junk.

We’ll help you find the most personalized and affordable coverage for your unique business.

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Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Junk Removal Business

General liability insurance is — generally speaking — one of the most important insurance policies for junk removal businesses. 

Some of the risks general liability insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

It may be worth looking into some of the following policies in addition to general liability:

  • Commercial auto insurance: Since vehicles form an essential part of any junk removal business, this policy will be needed as it is a legal requirement in most states that commercial vehicles are insured.
  • Workers’ compensation insurance: Similarly, if your junk removal business employs workers, most states will obligate you by law to carry this policy to cover them financially in the event they are injured or fall ill due to a work.
  • Commercial property insurance: This policy protects your business’s investment in vehicles, tools, and other resources from damage caused by specific incidents (e.g., fires and natural disasters).

It is important to decide which of the following two categories of insurance providers best suits your junk removal business:

  • Traditional brick-and-mortar insurers — Includes firms like The Hartford and Nationwide.
  • Online insurers — Includes firms such as Tivly and Next.

Small businesses are typically advised to select online insurers as their policies balance affordability and reliability.

By comparison, traditional insurers tend to charge comparatively high prices due to their similarly high operational costs.

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Junk Removal Business Insurance Cost

On average, junk removal businesses in the US spend between $450 - $1,000 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a junk removal 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.

Graph showing average price of general liability insurance prices per industry

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Discover the best coverage at the lowest rate in our affordable business insurance review.

Common Situations That General Liability Insurance May Cover for a Junk Removal Business

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Example 1: While on a removal job in a client’s home, one of your employees accidentally drops a box of heavy junk on the client’s foot. If held liable for the client’s injuries, your business would probably have some coverage under a general liability insurance policy for damages incurred or a settlement reached outside of court.

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Example 2: An employee knocks over a water bottle during a junk removal session in a client’s home. The client slips on the spilled water and breaks her hip in several places. If you were found liable, general liability insurance would probably help cover some of the damages or any settlement reached between your business and the client.

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Example 3: One of your employees likes to make small talk with clients during jobs. He spreads stories about a competitor’s removal business, and the competitor gets wind of this. You are targeted with a lawsuit for slander. General liability insurance would likely cover legal costs related to the incident.

Other Types of Coverage Junk Removal 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:

Commercial Auto Insurance

A motor vehicle used for commercial purposes must be covered by auto insurance. Junk removal businesses will undoubtedly require trucks or other vehicles for the physical junk removal process. Commercial auto insurance will provide your business coverage in the event of auto accidents.

Workers’ Compensation Insurance

In most states, you are legally required to cover part-time and full-time employees with a workers’ compensation policy. This allows coverage for any worker who is injured on the job, protecting your business from losses from employee lawsuits and helping to assure compensation for injured workers. Disability and death benefits are also provided through workers’ compensation policies.

Commercial Property Insurance

If your junk removal business’ equipment, tools, resources, or commercial vehicles are damaged by disasters like fires or violent weather, a commercial property policy can provide coverage. This can save your business from drastic losses and steep costs of reinvestment.

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 junk removal 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.

Junk Removal 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.

Yes, since a junk removal business will likely face an inherently high level of risk by nature. As such, obtaining business insurance is essential before your company launches as it will safeguard its assets from the financial threat of these risks.

Not only this, specific policies, such as commercial auto and workers’ compensation insurance, will help your business maintain legal compliance with state laws.

Not necessarily. Certain exceptions may be written directly into your junk removal 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.