The 6 Important Types of Business Insurance for Septic Tank Services
Nearly a quarter of the US population relies on septic tank services like yours to clean and maintain a septic tank system. Preventative maintenance is the key to a long-lasting system - properly cared-for septic tanks can last a lifetime. But if a homeowner neglects to hold up their end of the bargain and calls a septic system service like yours - well, we're sure you've seen what happens.
The point is this: Your business needs "preventative maintenance" too. It's called a business protection plan, which pairs effective risk mitigation techniques with a solid business insurance plan to ensure that your company's assets are properly secure for its operational life.
It can be difficult to know where to begin with building a small business insurance plan, so insureon has made it easy. Below are the six types of small business insurance that we recommend to septic servicers like you...
An insureon agent can help you adjust the above policies so that you end up with a customized business insurance plan. Each year, you and your agent can reassess your policies and adjust them to match any changes in your company so you're always covered by proper protection.
General Liability Insurance for Septic Tank Services
General Liability Insurance is designed to help septic tank service business owners protect their businesses from some of the common third-party claims that are often filed against small businesses: those that allege property damage, bodily injury, and personal injury. Take a look a couple examples of General Liability claims that could happen to your business...
- One of your septic servicers accidently releases waste products onto the client's property, and they sue for damages.
- After cleaning a client's septic tank, methane gas starts venting into the home, which causes serious health issues for the family. They sue for medical expenses.
If you own or rent a piece of commercial property, General Liability Insurance can also protect you in the event that someone should injure themselves while visiting due to a slip, fall, or a similar mishap. In any case, your General Liability Insurance can help you pay for the resulting legal expenses, like defense, settlements, judgments, and other court-related costs.
Commercial Property Insurance for Septic Tank Services
Owning a septic tank service comes with many property risk exposures, which is why a Commercial Property Insurance plan is essential for adequate coverage. Your Commercial Property Insurance plan can cover...
- Common Perils. This includes fires, thefts, and some weather damages, like those caused by tornadoes and thunderstorms. If one of these unfortunate events befalls your septic service and damages your business equipment, tools, or commercial property, Property coverage can help you repair or replace it.
- Your Client's Property. You, like most cleaning-service professionals, spend a lot of time on your clients' property handling their stuff. Your Property Insurance can help you pay for the damages, should you or an employee break or destroy your clients' property while it's in your care.
- Contract Penalties. Your Property Insurance can help you pay for expenses related to missing a contracted deadline.
Septic servicers should also strongly consider adding a Supplemental Property Insurance Coverage Endorsement, or SPICE, to their policies. Designed with cleaning-service professionals in mind, your SPICE can offer additional specialized coverage. One of the most valuable SPICE coverages is the one that protects your business equipment while it's in transit or with you on the job at a client's house. A standard Property Insurance policy can't cover these items once they leave your business's premises, and your Commercial Auto Insurance can't cover them either. Your SPICE can also add extra protection for incidents like employee theft and forgery. Ask an insureon agent for more information about SPICEs.
Business Owner's Policies (BOPs) for Septic Tank Services
Many septic tank services qualify to have their owners purchase a Business Owner's Policy (BOP) instead of separate General Liability and Property Insurance policies. These BOPs, like all package policies, offer business owners a discounted rate for the same (or better) coverage. Most BOPs automatically come with replacement-value Property coverage, which is typically more expensive on a standard policy because it allows you to replace damaged properly for its current market price, not a percentage of its value.
In order to qualify for a BOP, your insurance provider must classify your septic tank service as "low-risk" for General Liability and Property Insurance claims. To find out for sure if your septic service qualifies for a BOP, contact an insureon agent.
Commercial Auto Insurance: Protecting a Septic Cleaning Service's Vehicles
There are certain inevitable automobile exposures when you own and operate a tanker truck. Thankfully, a Commercial Auto Insurance policy can help you address these issues. In addition to the risks associated with owning and driving any vehicle - collisions, accidents, vandalism, theft, and weather damage - the tanker drivers of your septic service face a few unique risks...
- Rural roads. Your septic servicers primarily work in rural areas and must often drive on narrow, winding roads. These roads are often difficult to navigate, and even trained, experienced drivers are susceptible to accident and injury when driving under these conditions.
- Tanker spills. Tanker trucks have been known to overturn. In addition to vehicle damage and bodily injuries, when a tanker truck overturns there is the additional risk of sewage seep and spillage. Your drivers should be trained in proper cleanup procedure to minimize damage and insurance claims.
An effective Commercial Auto Insurance policy will protect you in the event of one of these accidents by helping you pay for medical expenses, vehicle repair, and legal costs in the event of a lawsuit. And if you haven't already, read the Property Insurance section above to learn more about how a SPICE can protect your business equipment while it travels with you to a jobsite.
Workers' Compensation Insurance for Septic Tank Services
Workers' Compensation Insurance is a coverage every septic tank service owner should carry. Your employees work hard and workplace injuries and illnesses can occur. Take a look at a few risk exposures in your industry that might result in a Workers' Compensation claim...
- Employees regularly lift heavy hoses and equipment, resulting in strains and other injuries.
- Older septic tanks can collapse, resulting in injuries.
- Methane gas could be released from a tank that doesn't vent properly, causing asphyxiation.
Should one of your employees sustain one of these illnesses or injuries, your Workers' Compensation Insurance will help pay for related medical expenses. Typically, this coverage allows injured or ill employees to collect a portion of the wages they lost while recovering as well.
As you may know, Workers' Compensation Insurance is regulated by your state government, and the exact requirements of your coverage may vary. Most states require employers to at least carry coverage for full- and part-time employees, but don't forget to check out our guide to Workers' Compensation regulations to be sure.
Umbrella Insurance: Extra Liability Protection for Septic Tank Service
Umbrella Insurance is an affordable way for septic tank service owners to buy extra liability protection for their businesses. This coverage increases the protection power of multiple policies - like General Liability and Hired & Non-Owned Auto Insurance - all at once. It kicks in when a particularly expensive claim maxes out the limits of your primary policy.
Small-business owners without Umbrella Insurance are responsible for making up the difference themselves - whether they have to sell off business equipment or dip into personal funds to do it. It's unlikely but not impossible that an expensive claim can exceed your policy's limits. Imagine what would happen if methane gas started venting into a client's home after your service. This gas is extremely toxic, and could easily result in death - and a General Liability claim that exceeds your coverage limit.
Umbrella Insurance generally costs only a few hundred dollars each year, but adds coverage to your insurance plan $1 million at a time.
Get Small Business Insurance Quotes for Your Septic Tank Service
Are you ready to start building your business insurance plan? Start off by securing small business insurance quotes for your septic tank service with the help of an experienced insureon agent. Alternatively, you can go online and fill out our easy electronic form to have these quotes sent via email.