Best Insurance for a Pressure Washing Business
The most common and comprehensive type of pressure washing 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 pressure washing business isn’t legally required to carry general liability insurance, operating without it is extremely risky. If your pressure washing business is sued, you could face fees totaling hundreds of thousands of dollars (or more).
Cost of General Liability Insurance
The average pressure washing 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 pressure washing business to other professional industries using the graph below:
Several factors will determine the price of your policy. These include your:
- 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.
Common Situations That General Liability Insurance May Cover for a Pressure Washing Business
Example 1: To clear the stubborn grime from the grooves in a concrete surface, you use your highest-intensity nozzle. You accidentally drop the hose, and the pressured stream passes over your client’s hand, producing a laceration that requires medical attention. In the event you are found responsible, general liability insurance would probably cover any damages you are asked to pay.
Example 2: Your employee is pressure-washing a client’s expensive modern vehicle, but he underestimates the potency of the water stream. While focusing on the front bumper, he cracks the surface and leaves a very noticeable dent. Due to the car’s specialized modern build, replacement parts and repairs for the damaged section amount to a sizeable claim. If your company is held liable, it is likely that general liability insurance would be able to cover some amount of what you owe.
Example 3: A new employee in your business is using an electric pressure washer to scrub the dirt and grime from a farmer client’s pig crates. Due to an interior electrical fault, an exposed metal surface on the washer becomes energized. It comes into contact with pooling water from the crates and starts a fire, destroying a large chunk of the client’s barn and livestock pens. In a case like this, general liability insurance would assist your company in covering lawsuits or settlements resulting from the accident.
Check out our review of the Best Small Business Insurance Companies.
Other Types of Coverage Pressure Washing 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.
Commercial Property Insurance
As a business that thrives on its use of complex specialized equipment, commercial property insurance is a must-have. Different washer units and their accessories, like spray nozzles and motor/electrical components, will be expensive to replace or repair. This policy will allow pressure washing businesses to protect some of their most important equipment investments. Fire, storms, explosions, and vandalism are commonly covered in commercial property insurance policies.
Your business will need a storage center for its equipment and vehicles, and this insurance will also cover any owned real estate on which you maintain your important supplies. Fires and destructive weather are examples of what may be covered by your commercial property insurance with regard to real estate.
Commercial Auto Insurance
You’ll need reliable transportation for your pressure washing equipment, and that usually means trucks or vans. For any business that uses vehicles on public roads, commercial auto insurance is required by the state. Your vehicles will be essential assets to company productivity, so skipping auto insurance is out of the question. This policy will cover a variety of damages to vehicles, and potential items for coverage can include standard cars, trucks, or even trailers.
In addition to the policies outlined above, there are a few other types of coverage your pressure washing business may require depending on certain aspects of your operations. Some of these might not apply to you, so be sure to ask your agent which policies are right for your business.
Workers’ Compensation Insurance
A pressure washing business may start small, but as it grows, a compensatory policy for employees will become a priority. In some states, part-time or full-time employees will legally require a business to take out a workers’ compensation policy. This covers a range of on-the-job mishaps, including those resulting in medical intervention, disability, or death. High-pressure washing units require careful, professional handling in order to meet safe working standards. Even if you trust your employees, a good compensation policy is ultimately in everyone’s best interests.
A pressure washing business cannot function without its expensive service equipment. It is natural to give your employees easy access to the utility storage locations in which you house washing units, company vehicles, and other valuable items. However, in the event that an employee abuses their company access to steal your equipment, crime insurance is a smart way to recoup the losses incurred as you replace the stolen goods.
This policy may also cover employee dishonesty along the lines of deliberate property damage, theft of securities, or even the direct theft of money by accounting staff or similar office workers.
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 pressure washing 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.
Business Insurance Is the Best Way to Protect Your Business
If you're starting a new business, then you need business insurance. It's as simple as that. The protection offered by an LLC will protect your personal assets, but your business's assets are still open to liability in the case of a lawsuit or other loss.
Be sure that everything you've built is safe by getting business insurance.
Pressure Washing Business Insurance FAQ
Can I buy business insurance online for my pressure washing business?
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.
What is included in a business owner’s policy?
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.
What is the difference between business insurance and general liability insurance?
"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.
Do I need insurance before I start a pressure washing business?
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.
Will insurance protect my pressure washing business from everything?
Not necessarily. Certain exceptions may be written directly into your pressure washing business insurance policy, and some perils may be entirely uninsurable.
Is general liability the same as business owners?
A general liability insurance policy covers only liability losses. A business owner's policy covers both liability and property losses.
How do I choose the best general liability insurance?
The best general liability coverage for your business really depends on the amount of coverage you’re comfortable with and how often you expect to file a claim. A relatively safe business with a very low risk of accident or legal liability could opt for lower premiums with higher deductibles.
However, if you are in an accident or injury-prone industry or are making advertising claims about the effectiveness of your service or product, you may wish to consider more extensive coverage. We recommend using a digital insurance provider like Next Insurance.
Do I need business insurance if I already have an LLC?
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.