What Types of Insurance Do You Need as a Pest Control Operator?
Posted on Mar 29, 2018
Owning a pest control business carries a certain degree of risk. One of the tools you have at your disposal to mitigate those risks is insurance. Of course, not all insurance policies provide the right level of protection to meet your needs. Below you will find various types of insurance coverage you need as a pest control operator.
What Types of Risks do Pest Control Operators Face?
All businesses face some risks. Among the most common risks are the following:
- Data breaches
- Employee theft
- Fire
- Lightning
- Storms
- Wind
Your business in the pest control industry faces a few more risks than the average business. Some of these risks are related to the chemicals used to perform your job, and others are related to the inherent risks in your line of work.
This means that you need to take extra care when exploring options for insurance coverage to make sure you’ve accounted for some of the unique risks your business poses, such as:
- Exposure to harmful chemicals and materials.
- Employee or personal injuries while carrying out job duties (falls, noxious fumes, respiratory illnesses, etc.).
- Environmental risks associated with the use or misuse of chemicals and pesticides.
- Damage to customer property.
- Professional liability risks.
- Auto accident risks (especially when transporting harmful chemicals that may leak).
As you can see, there are a variety of risks related to your business that even the most conscientious and professional pest control operators may encounter.
One Size Does Not Fit All
The unfortunate truth is that many insurance companies offer standard business policies that are designed to meet most of the needs of the masses while offering very little in the way of specializations for specific business needs.
Pest control operators have unique and specific insurance protection needs that will not be met by a standard Business Owner’s Policy (BOP). You do need the general protection the BOP provides, which includes the following with most providers:
- Property Insurance
- Building and Contents Insurance
- General Liability Coverage (in limited amounts)
- Business Interruption Insurance
Some BOPs offer additional protection for businesses, but most business owners need protection not offered by the BOP policy. In the pest control industry, you certainly need more than the coverage typically offered in a universal policy like this.
What Policies Work Best for Pest Control Operators?
While you do need the protection offered by the standard Business Owner’s Policy, you also need a wide range of additional insurance protection, many of which are designed to offer legal and financial protection as well as protection for your vehicles and equipment. The following are among common insurance products for pest control businesses and operators:
- Pollution and Fumigation Liability. Pesticide operator insurance like this helps protect you and your business if the chemicals you use cause a pollution event.
- Professional Liability. In this industry, the policy is known as Care, Custody, and Control Liability.
- Business Auto Insurance. Because your job is to go to locations where pests are, you need business auto coverage to protect your business, your vehicles, and your drivers.
- Electronic Data Coverage. Sometimes referred as Cyber Liability Insurance, if your business operates online, stores customer information on computers, or uses the Internet at all, you are at risk of being hacked. This insurance protection provides liability protection, data recovery protection, and more for your business if you become a victim of a data breach.
- Tools and Equipment Coverage. Protects against the loss of owned, borrowed, rented, and leased tools and equipment.
- Umbrella and Excess Liability Coverage. This type of insurance for pest control operators kicks in once your other liability coverage limits have been exhausted. Because pest control operators face greater risks of lawsuits and liability, it is an essential asset in your insurance portfolio.
- Workers Compensation Insurance. Legally required in most states if your business meets the certain criteria and highly recommended for any business that has employees.
- Inland Marine Coverage. Protects tools and equipment, including chemicals and supplies, during transport.
- Pest Inspection Damage Liability Coverage. Sometimes, the inspection process for pests can cause damage to properties. While the damage may be unintended, it can be equally costly to repair. This pest control insurance protection helps cover your legal fees, settlement costs, or judgments against your business to cover the costs of repairs.
When it comes to pest control business insurance, you can’t afford to take unnecessary risks. Work with an independent insurance agency to find the policy that best meets the needs of businesses in your industry as well as the unique needs of your business.
