If your goal is to own a small business that has the power to improve the curb appeal of commercial and residential properties, starting a pressure washing company is a good idea. In fact, this is a growing industry, as the market size increased by 9.4% within five years. As you look into getting started in this growing field, you might have already considered the basics, such as buying pressure washing equipment and obtaining a business license. But one necessity that some business owners don’t think about is business insurance. In particular, you need to protect yourself and your customers with pressure washer liability insurance. As you begin researching this type of insurance, take a look at some questions you might think of, followed by the answers you need before you make a decision.
What Does General Liability Insurance Cover?
General liability insurance is just one type of business insurance coverage, but it’s often considered among the most important because of how many situations it can cover. This is especially helpful when you work with powerful equipment on someone else’s property, since you’ll want to ensure you have a policy that will pay for any expenses incurred if you ever make a mistake while working.
When you get pressure washer liability insurance, your policy will cover the following:
- Bodily injury, in case you or an employee hurts a customer or passer-by on the job
- Property damage, which kicks in if your pressure washing equipment damages the customer’s house, car, business property, or other belongings
- Damage to property rented to you, as long as the damage was not intentional
- Advertising injury, which covers you if you’re accused of false advertising or using a photo of a customer’s property without permission
- Libel or slander, in case another business claims you’ve harmed their reputation and sues your company as a result
No matter how careful you are, there’s always a chance you or your equipment could accidentally injure a person or damage the property you’re working on. This is why it’s essential that you get pressure washer liability insurance.
And this is just the bare minimum, as you should also obtain coverage that protects your pressure washing equipment, company vehicles, employees, and more. As you start researching the liability coverage you need for your pressure washing company, you will have the option to add more types of insurance to your business policy to protect your customers, employees, and your company as a whole.
Do I Have to Get Pressure Washer Liability Insurance?
Small business requirements vary by location, so you should research the laws in your city and state as you start your pressure washing business. In many areas, when you offer a service to the public in exchange for money, you’re required to get an insurance policy with general liability coverage to financially protect you and your customers.
In some cases, it’s not the city or state that requires insurance, but the customer. For example, most projects associated with the government require the companies they work with to have business insurance. So, if you don’t have the right coverage, you risk missing out on some lucrative projects.
Even customers not associated with the government often look for insured companies to hire simply to protect themselves and their property in case something goes wrong during the job. They want to ensure that if you accidentally damage their house, car, business property, or other valuable belongings, you have an insurance policy that can pay for repairs. As such, if you can’t tell them you have pressure washer liability insurance, you won’t get their business. This is why even if you aren’t technically required to get coverage, it’s strongly recommended that you do.
What Happens If I Don’t Get Pressure Washer Liability Insurance?
If your area requires you to get business insurance and you refuse to, you could find yourself unable to get a business license or take on new customers until you show proof of insurance. Even if there is no insurance requirement in your city, you will likely miss out on getting work from individuals and businesses that are only willing to hire insured pressure washing companies.
The potential to miss out on work is only one way that a lack of insurance might cost you money. Another way is when you make a mistake on the job and have to pay out of pocket. Considering that medical bills and property repairs can cost thousands of dollars, even one mistake can bankrupt your business.
After all, if a customer trips over your pressure washer’s power cord and ends up in the hospital, you will be responsible for their medical bills and lost wages if you don’t have insurance. Similarly, if your pressure washer damages their house, you’ll be expected to pay for repairs. If you don’t have the money, your customer could sue you, requiring you to incur legal fees in your defense. Getting a pressure washer liability insurance policy is a simple way to avoid all of these unexpected costs as a business owner.
How Much Does Liability Coverage Cost?
If you’re worried about the price of insurance for your pressure washing business, it’s helpful to know that it’s likely more affordable than you think. In fact, it’s possible to get a $1 million policy for $500 to $1,000 per year. Your total cost will depend on your location, deductible, company size, and other factors.
But you can typically find a good deal by getting quotes from a few insurance companies. This is especially the case if you bundle several coverage options, such as through a business owner’s policy (BOP) that includes general liability, business income, property damage, and other types of insurance. So, if you’re looking for a way to protect your pressure washing business without going over your budget, start getting quotes from trusted business insurance companies today.