Junk Removal Insurance Misconceptions
What is the insurance needed for junk removal business operations? Simply put, there are three kinds of insurance you will need to obtain. The first is general liability insurance. The second is commercial auto insurance. Finally, the third is worker’s comp insurance. With these three types of coverage, your junk removal business will be able to mitigate risks and be protected in the case of a variety of different problems. For example, a car accident involving your truck will be covered by your commercial auto insurance. In the case of accidental damage to the customer’s property, you can use general liability insurance. And, of course, worker’s comp will handle the medical expenses of an injured employee.
This all seems simple enough, but there are a few misconceptions regarding insurance that we want to take a look at. Some of these misconceptions might even be ones that you currently believe. Junk Removal Authority is here to shine some light on them. Let’s see if you walk away surprised.
General Liability Insurance Covers Less than You Think
Let’s say you’re hauling a heavy wardrobe out of a customer’s house and to your truck. Along the way, you’re going to have to take it down a flight of stairs. You bring the right equipment, and you bring several pairs of hands, but despite everything, everything somehow goes wrong. The wardrobe tumbles down the stairs, damaging the steps and the hardwood floors. Thankfully, nobody was injured—aside from the customer’s house. So, what sort of insurance will cover these damages? General liability insurance, commercial auto insurance, or worker’s comp?
If you answered general liability insurance, you may be surprised to hear that you’re incorrect. Believe it or not, because you were hauling the wardrobe to your truck, these damages would actually be covered by your commercial auto insurance! In fact, all damage caused when moving an item to your junk removal truck falls under your commercial auto policy.
Does this mean general liability insurance is useless? Not really. General liability insurance will cover you in a scenario where you’re not moving an item to your junk removal truck, but cause damage while maneuvering around the customer’s home. So if a customer needs you to adjust the position of a refrigerator, and you wind up taking out their drywall, that’s where your general liability policy kicks in.
Don’t Rely on an Individual Auto Policy
Not everyone running a junk removal business has a big, custom-made junk removal truck. Some of you out there are using a pick-up truck and a trailer. However, don’t fall into the trap of thinking that an individual auto policy will be enough to cover you. You might wind up having a rude awakening, and it won’t be cheap.
Let’s say the same scenario involving the wardrobe happens again. You go to file a claim under your individual auto policy, and… it’s denied! You can imagine the nightmare of having to pay for damage repairs out of pocket. Doesn’t sound like fun, right?
However, it could be much, much worse. Picture this: an unfortunate car accident that totals your truck and sends somebody to the hospital. Now there’s a claim you really wouldn’t want to be denied. Don’t take unnecessary risks, especially when insurance is involved. Get a commercial auto policy so you can get the coverage you need!
We’ll end this with a friendly reminder. The insurance needed for junk removal business operations is there to protect you. It’s not a money sink. It’s an investment you make for the day that something bad does happen. You can’t afford to make misconceptions about something this important, so we’re happy we could clear a few of them up!
Junk Removal Authority is the leading authority on junk removal operations. We are based in Apex, NC, but we serve business owners all across North America. Visit our Education center for more free resources on the junk removal industry. Or, if you’re ready to level up, contact us for marketing and business consulting support.