Pest Control Insurance: Types, Costs & How To Determine Which Is Best for Your Business

‍

Risks are inevitable in any business. But the pest control business comes with unique risks inherent in a service that involves special chemicals and extermination techniques.

Pest control business insurance is one of the best ways to minimize risk, and having adequate coverage is essential. But with the different types of insurance to choose from, as well as the variety of policies available, how can a pest control business owner know if they have the best insurance to cover all their needs?

We’re glad you asked! 

In this guide, we’ll discuss: 

• Why you need insurance for your pest control company
• Pest control insurance requirements
• Types of pest control insurance; and 
• How pest control insurance can benefit your business

Why Do I Need Pest Control Insurance?

Every business confronts risks, like:

• Fire
• Storms
• Lightening
• Data breaches
• And more

Pest control business owners face these common risks, along with many others that are particular to their unique type of work. 

When considering insurance for your pest control business, you will want to find insurance that covers things like:

• Employee injuries 
• Exposure to harmful materials and chemicals
• Client property damage
• Auto accidents
• Environmental risks
• Professional liability risks

If your company doesn’t carry the right insurance or adequate coverage, incidents like an unfortunate accident or misapplying chemicals can leave you footing the bill yourself.

Having pest control insurance is also a good business move. 

Many clients require pest control professionals to carry commercial general liability insurance in order to be hired. Having ample insurance coverage may give you a leg up on your competition. 

While taking care of your pest control insurance needs, don’t neglect your pest control software needs. Cedar Pest Software’s features, tools, and modern interface streamline your processes, helping you provide the best service to your customers.

‍

How Much Does Pest Control Insurance Cost?

The average cost of pest control insurance varies depending on factors like:

• Type of insurance
• General liability 
• Commercial auto 
• Workman's compensation 
• Commercial property
• Employee liability
• Age of the business
• Location
• Accident history
• Credit history
• Deductible amounts
• Number of employees
• Limits (per-occurrence and general aggregate limits)

Most pest control companies will want to have the following types of insurance (more detail on these below):

• General liability 
• Commercial auto 
• Workman's compensation 
• Commercial property
• Employee liability

Each of these types of insurance comes with its own deductible, limits, and coverage amounts, which can drastically affect the cost. In general, though, you may find the following average costs for these types of insurance:

• General liability - $400 to $700 per year for $1 million per occurrence
• Umbrella insurance - $600 per year
• Commercial auto insurance - $1500 to $1800 per year (depending on the number of vehicles)
• Commercial property insurance - $1000 to $3000 per year

The cost of workman's compensation insurance can vary depending on the number of employees and type of policy. More expensive workman's comp policies may have bonus accident policies that offer 24-hour, on- and off-the-job benefits. 

Purchasing a business owner’s policy may simplify the purchasing process. These policies bundle different types of coverage together (i.e., general liability and commercial property insurance) for a discounted price.

‍

5 Common Types of Insurance for Pest Control Companies

Depending on the … 

• Size of your business
• Number of employees
• Type of equipment your business uses

… you may need several types of insurance policies to be optimally covered. 

Below, we’ll take a look at five common types of pest control insurance and how they can benefit your business.

‍

#1: Comprehensive General Liability

As a pest control company, your work occurs on someone else’s property, so general liability insurance is a must. 

General liability protects your business in the case of:

• Bodily injury to a client
• Damage to the client’s property
• Damages due after completed work

Most comprehensive general liability policies offer coverage of $1 million per incident.

‍

How Can Comprehensive General Liability Benefit a Pest Control Company?

Without general liability insurance, you may be responsible for expenses incurred when:

• A client slips and falls due to a chemical spill
• A worker accidentally tears the ductwork while examining a crawl space
• An outlet fire occurs days after a technician sprayed pesticide on an electrical outlet; or
• A technician stains a client’s furniture with an extermination spray

Accidents happen — and can be costly. General liability insurance can protect you from costly expenses when unforeseen events take place.

‍

#2: Commercial Automobile Liability

Pest control companies rely on their vehicle fleets to get technicians to their job sites. Since your vehicles are used for business purposes, you should cover them with a commercial automobile liability policy.

States have different policy requirements, but commercial automobile policies protect the vehicle and the driver in the case of an accident. They also protect your business if you or an employee cause injury to someone else.

The cost of commercial auto insurance will depend on:

• The number of vehicles
• What the vehicles are used for
• Vehicle values
• And more

Automobile liability policies usually come with coverage like the following:

• $1 million combined single limit per state for medical/personal injury; and
• $1 million uninsured/underinsured motorist

‍

How Can Commercial Automobile Liability Benefit a Pest Control Company?

Having commercial automobile liability insurance can benefit you if your work vehicle is stolen or involved in a crash. 

If your work truck hits another vehicle and causes injury, the policy will cover medical care as well as damages to property or the other vehicle.

Obtaining commercial auto liability coverage is only one aspect of pest control fleet management. Cedar Pest provides the tools that make fleet management an easy task with our pest control software.

‍

#3: Workman’s Compensation

In most states, workman's compensation is required. But even if it isn’t required in your state, you’d still be wise to carry this coverage.

Workman's compensation insurance covers costs for medical expenses or lost wages if an employee is injured or killed on the job. Without workman's comp, you, as the business owner, may be responsible for expenses related to their medical care.

In the unfortunate event a worker files a lawsuit against you, the workman's comp policy would pay for court costs, attorney’s fees, and settlements. (See Employer Liability below.)

‍

How Can Workman’s Compensation Benefit a Pest Control Company?

Pest control workers confront risks every day — from dealing with dangerous chemicals to hazards around a client’s home.

Workman's comp insurance is the best way to protect yourself and your employees when an employee:

• Needs to go to the hospital after inhaling noxious chemicals
• Trips over debris in a client’s yard and breaks his arm
• Requires physical therapy for an injury due to repetitive motion

‍

#4: Commercial Property Insurance

Commercial property insurance is vital to protect not only your business’s buildingf but also your equipment and tools that may be damaged or stolen.

Commercial property insurance covers:

• A building you own or lease
• Tools, supplies, equipment, furniture, and inventory inside the building
• Expenses to continue your business in the case of a disruption in business

Pest control business owners invest in essential tools like:

• Sprayers
• Traps
• Repellents 
• Chemicals

Though these items may be stored in your building, they are most often hauled in the work vehicle. To make sure these supplies are covered while in transit, you may want to consider inland marine insurance. 

The cost of commercial property insurance can vary depending on factors like:

• Location
• Occupancy (number of employees and clients in the building)
• Type of equipment
• Age of building
• Safety measures practiced

‍

How Can Commercial Property Insurance Benefit a Pest Control Company?

So many things that are out of your control can happen to cause damage to your property. In the event of …

• Fire
• Theft
• Vandalism
• Storm
• Natural disasters
• Water damage; or
• Other perils

… commercial property insurance can help you stay in business and get things back in functioning order.

‍

#5: Employer Liability

Employer liability insurance provides protection in the event of a lawsuit by an employee. 

Most of the time, employer liability coverage is part of a workman's compensation insurance policy. In some states, however, business owners may be required to purchase this policy separately.

Employer liability insurance is used for four types of claims:

1. Third-party lawsuits by employees due to injury or illness on the job
2. Loss of consortium lawsuits by spouses claiming loss of marital benefits due to injury or illness to their spouse (employee)
3. Consequential lawsuits by non-employees affected by the illness or injury of an employee‍
4. Dual-capacity lawsuits

‍

How Can Employer Liability Benefit a Pest Control Company?

If an employee is injured on the job and believes the workman's compensation benefits are inadequate, they may sue you. If you have employer liability insurance, it can help cover costs related to the lawsuit — expenses that can quickly add up.

‍

Additional Pest Control Insurance You May Want To Consider

In addition to the most common insurance policies discussed above, you may also want to consider the following policies for more comprehensive coverage:

• Cyber liability insurance - If your business is on the internet, you are at risk of being hacked. This insurance can help you by providing liability and data recovery protection.
• Pollution and fumigation liability - This type of insurance policy can offer protection if the chemicals you use cause pollution issues.
• Pest inspection damage liability - If your company damages a client’s property during an inspection, this type of policy can cover the costs to repair the damage.‍
• Umbrella and excess liability coverage - This coverage kicks in when you’ve exhausted your general liability benefits.

‍

Further Steps To Protect Your Pest Control Business

Beyond being prepared by having the most comprehensive liability insurance for pest control businesses, you can take some proactive steps to lower risk. Safety precautions and procedures can go a long way to ensuring the safety of your employees.

Take care to instruct your employees in the following safety procedures (and insist on compliance):

• Always use personal protective equipment (PPE), including:
• Bee suits
• Full-coverage face masks
• Gloves
• Boots
• Respirators
• Ladder safety 
• Wildlife trapping 
• Treating animals in accordance with the law
• Proper chemical use

No matter what methods you use in your pest control business or how you ensure safety, pest control software can make running your pest control easy and seamless.

‍

Cedar Pest: Modern Pest Control Software for Peace of Mind and a Competitive Edge

At Cedar Pest, we know the pest control industry — and we know what pest control business owners need to operate their businesses successfully. Our modern software is designed to make your life easier.

We are committed to creating tools and solutions to improve your daily operations and customer experience.

With features for …

• Scheduling and routing
• Payment processing
• Customer management; and
• Reporting 

… you can have everything you need to streamline your business right at your fingertips.

Request a demo today to find a plan that’s right for your pest control business.

‍

‍