Pests pose severe risks to homeowners and businesses, leading to potential health hazards and property damage. That’s why pest control contractors are always in high demand.
According to IBISWorld, there’s a heightened demand for extermination and prevention services in Canada, with industry revenue expected to grow, increasing an annualized 6.2% to $2.2 billion over the five years to 2023.
But despite knowledge, experience, and training on effectively managing and eradicating vermin, liability insurance for pest control businesses and contractors is essential for safeguarding their assets and reputation following insurable losses, damages, and allegations of wrongdoing.
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What Liability Risks Do Pest Control Businesses Face?
Your customers rely on you to rid their properties of irksome insects (mosquitoes, bed bugs, cockroaches, termites, ants, cluster flies) and rodents (mice, squirrels, rats). However, accidents and mistakes do happen in any line of work, and for pest control professionals, the risks are amplified when using pesticides, poisons, and chemicals.
It’s not just creepy crawlies and rodents that pest control contractors are up against. They also have to contend with liability risks, including:
- Third-party property damage to a customer’s property, such as flooring, furniture, and landscaping, while applying pesticides and other control measures.
- Third-party bodily injuries to customers, neighbours, or passersby because of exposure to harmful chemicals that cause them to become ill or if they trip over your equipment while you’re working.
- Environmental contamination of soil and water at your customer’s property or nearby properties because of an accidental spill or improper disposal of pesticides leads to a pollution liability claim or lawsuit. For pest control businesses based in Ontario, they’re required to carry a minimum of $1 million of pollution liability coverage.
- Professional negligence allegations or errors made during assessments, consultations, and treatments.
- Theft of or vandalism to tools and equipment you need to do your job.
- Auto accidents involving a company utility van or a personal vehicle you use for work.
- Breach of contract allegations claiming you failed to fulfill your contract obligations with a customer.
What Does Pest Control Business Insurance Cover?
There are different factors about your business to consider that can help guide you when determining what your insurance policy should contain.
Think about the work you perform for your customers, who your customers are (residential, commercial, industrial), the chemicals and tools you use, and the safety measures you adhere to to avoid accidents and mistakes.
Here are five types of insurance every pest control contractor or business should have:
1. General liability insurance covers you for third-party bodily injuries and property damage to a customer’s premises or residence.
2. Professional liability insurance covers professional negligence claims, mistakes and omissions you make, or failure to deliver a service as promised.
3. Pollution liability insurance pays for damages to properties or customers’ health because of toxic substances you use to clear a building of insects or rodents.
4. Tools and equipment insurance pays to repair or replace your transportable tools and equipment if lost, stolen, or vandalized.
5. Commercial auto insurance covers you if you’re involved in a car accident. Don’t rely on private-passenger car insurance to cover you for accidents involving a vehicle used for business purposes, as it’s not designed to do so. Each province has mandatory coverages and limits for auto policies, but you can bolster your protection by adding optional protection such as collision or upset insurance and comprehensive insurance.
Get in touch with us if you have questions, and speak to a licensed Zensurance broker about pest control insurance and what coverage limits your policy should have.
How to Get Pest Control Liability Insurance Fast
Getting a low-cost, customized pest control insurance policy and certificate of insurance is easy with Zensurance.
Start by filling out our online application for a free quote. Our friendly, experienced brokers will shop our partner network of over 50 insurers to get a policy that suits your needs and budget.
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