How to Deal With Rising Insurance Costs in Your Junk Removal Business
Dealing with rising insurance costs can be expensive and frustrating, but it’s necessary for operating a junk removal business. After all, you can’t just drive a truck around without having it insured. Even so, the costs can be enough to make you balk. We’ve heard about an additional truck incurring an increased insurance cost of $18,000. That’s hardly pocket change.
So here’s the question: how are you supposed to come up with an extra $18K? How is a junk removal business supposed to take a hit this big and keep rolling forward? Learn with Junk Removal Authority and review the actions you can take below.
Increase Revenue Per Job
One of the first things you’ll need to do to adapt to increased insurance costs is to make more money per job. But how much more? That’s something you can figure out with a little bit of math.
For example, let’s continue to use the increased insurance cost of $18,000. Let’s also say that your business does a total of 1,000 jobs annually. Some quick division will tell you that you only need to earn an extra $18 per job to have enough money to pay off the insurance cost. Suddenly, scraping together the extra cash doesn’t seem like such an impossible feat.
Something also worth keeping in mind is that with an extra truck in your fleet, you can conduct more business. After all, you can get more appointments done in a week when you have multiple trucks to haul junk with. That means you may be doing more than 1,000 jobs annually. You may start taking on twice as much work—which means the amount of extra revenue you have to earn per job is actually lower than $18!
Play it Safe to Save Money
We all know that insurance companies like low-risk clients that are less likely to file claims. Because of this, there are “common sense” ways you can save money on insurance costs by playing it safe and making your business less of a risk for your insurance company.
A big thing to consider is who will be driving the truck. As a general rule, you should avoid hiring drivers under the age of 21, or with less than five years of driving experience. And you certainly shouldn’t hire a driver with points on their license. These are all red flags to your insurer, and they’ll happily take the opportunity to charge you more money.
Pick your drivers wisely, and don’t forget to emphasize the importance of safe driving to them. Train your drivers to obey the rules of the road and to drive defensively. After all, not getting into any accidents is a fantastic way to avoid making claims. Plus, if you go several years in a row with no claims, you’ll have lower insurance rates, giving you a distinct advantage over your competitors.
Keep Up the Good Work
Dealing with rising insurance costs can be aggravating, but your junk removal business has the resources it needs to make up the difference. Don’t forget that there is demand for junk removal services just about anywhere you are. So stick to the industry and play according to the rules of the game, even if that means coughing up extra money for insurance. Keep doing good work, get that extra truck, and with JRA at your side, your business will reach new heights.