If you run a pressure washing business, getting insurance is something you shouldn’t overlook. Pressure washing insurance can protect against liability from accidental damage to customer property, bodily injury, loss of business equipment, and more. While it might seem like an unnecessary expense, it can prevent you from undergoing serious financial hardship if accidents occur.
General liability coverage is the most common type of insurance coverage, protecting against bodily injury and property damage. It typically runs from $1,000 to $2,000 per year, depending on the coverage limits and details of your business. Thimble is one of the insurance companies I recommend considering, as it has the flexibility to allow coverage on an as-needed basis, whether it’s by the job, hour, day, month, or year.
Pressure washing insurance costs
The amount you’ll spend on pressure washing insurance depends on the types of coverage you get and the details of your business. General liability insurance is something I consider to be a must-have, and will cost around $100 monthly according to Thimble. Below, I’ll cover the other types of insurance you may want to consider, as well as factors that can impact the price you pay.
Policy | Typical annual premium range | Purpose |
|---|---|---|
General liability | $1,000-$2,000 | Protects against claims resulting from bodily injury, property damage, or personal & advertising injury such as defamation |
Commercial auto | $2,400-$4,000 | Provides coverage against physical damage and bodily injury for business vehicles |
Hired/Non-owned auto | $500-$1,000 | Offers liability protection for vehicles that are used, but not owned, by your company |
Business equipment/Inland marine | $50-$200 | Offers protection to business equipment that could be damaged or stolen |
Property insurance | $600-$1,200 | Covers business property (such as a building or office) against physical damages, such as vandalism |
Workers’ compensation | $800-$2,000+ | Provides coverage in the event an employee is injured while working on the job |
Professional liability | $500-$800 | Protects against claims of monetary damages due to failing to provide services appropriately |
Factors impacting insurance costs & how to save money
At a high level, insurance costs are determined by your likelihood of filing a claim and the corresponding dollar amount the insurance company may need to pay out. Insurance companies have access to a wide range of data and statistical models to determine these items, and they consider many different aspects of your business, such as its industry, location, company size, industry experience, and more. Being aware of how insurance premiums are calculated can also help you save money.
How insurance costs are determined
Insurance companies can place different weights on various factors in calculating what premium to charge you. For this reason, you may get wildly different quotes for insurance coverage depending on a specific company’s appetite for risk and risk preferences. The following are common factors that insurance companies consider in determining premiums, such as a general liability premium:
- Industry: Industries each have their own unique risks that impact the expected likelihood of an accident and the expected monetary damages that might have to be paid out.
- Business size, location, & revenue: Companies with more locations, more employees, and those that generate more revenue generally have more frequent interactions with customers, raising the risk exposure of accidents and claims being filed.
- Hours of operation: All other things being equal, the longer a company’s business hours, the greater the chances of an accident occurring.
- Claims history: Companies with a history of filing claims are generally charged more. Insurance companies view this to be more risky behavior, and one that could potentially continue occurring should they decide to issue a new policy with that business.
- Coverage limits, types, and deductibles: The higher your limits and the more coverage types you choose, the higher your premium, as the insurance company could potentially be on the hook for a larger amount in the event of a claim. Since your deductible is the amount you must pay before the insurance company kicks in any money, smaller deductibles are often correlated with higher premiums.
How to save money
To make sure you’re not overpaying for pressure washing insurance, shop around and get quotes from at least a handful of different companies. While your premiums will be determined by some factors that are out of your control, focusing on what you do have control over can ensure you get the best deal and can use more of your hard-earned money to invest back into the company itself.
- Shop around for quotes: Companies each have different risk preferences. One company may charge higher premiums to discourage business in a particular line of work, while others may provide far lower rates.
- Choose the right coverages: Consider the business circumstances and risks you’re likely to encounter in determining the types and amounts of coverages to get. Avoiding unnecessary coverage is one easy way to avoid paying too much for insurance.
- Select the correct deductible: If you’re not at an elevated risk of having accidents occur and you can afford the rare instance of needing to file a claim, selecting a higher deductible can be another method of saving money on your annual insurance premiums.
- Check your eligibility for discounts: Discounts vary depending on the insurance company you select. For example, discounts may be available to those in select professional organizations or who have a particular license or professional certification.
Pressure washing insurance coverage types
With the potential risks involved with pressure washing, I recommend all pressure washing companies to consider getting some form of insurance — general liability insurance being at a minimum. However, I strongly recommend the following businesses to consider even more policies:
- Businesses that hire contractors
- Companies that have a fleet of vehicles for business purposes
- Companies with one or more physical locations
- Organizations competing for business in a highly competitive area
- Pressure washing businesses that operate regularly, year-round
Insurance needs will vary based on the details of your business. For instance, if you have a large number of employees or hire contractors, consider getting workers’ compensation insurance. Similarly, if you market against a large number of competitors, you may want to beef up your general liability coverage, as the likelihood of a defamatory claim being filed against you could be higher than normal.
The state you’re in may have laws and regulations requiring certain types of insurance. So even though you may not think you need a particular type of coverage, state law may require you to purchase it anyway.
General liability insurance is the one coverage you should not skip out on, as it protects you and your business from common accidents, like bodily injury and property damage. These could occur if customers accidentally trip over your equipment, or if you accidentally use the wrong settings on your pressure washer and inadvertently damage a customer’s property.
Depending on the type of injury or property involved, the financial liability to your business could be substantial. Without adequate coverage, you could even possibly be forced to file for bankruptcy if you’re otherwise unable to pay for the damages.
General liability insurance can also cover claims resulting from personal and advertising injuries. An example of this could be if a competitor believes that your marketing methods are somehow defamatory against their business, and they file a claim against you.
If you have vehicles that are used and owned by your business, you’ll need commercial auto insurance to protect against accidents that may occur. This insurance protects against liability resulting from damage to other individuals or property, as well as injuries that you yourself may sustain.
Examples of how this coverage could protect you include instances where another driver runs a stop sign and hits your vehicle. It could also protect if your vehicle is broken into, or if it’s damaged by a tree or hazardous weather conditions, like hail.
This coverage can be useful if your business uses vehicles for work, but does not own them. For example, if you have an employee use their personal vehicle to run to the store to pick up something for a pressure washing job, but they end up causing an accident, non-owned auto insurance coverage can protect your company if the other driver sues your company for damages related to that accident.
This coverage is often broken up into two categories depending on your use case. Hired auto coverage can be applied for vehicles that are rented or borrowed from someone who is not an employee, family member, or business partner. Non-owned auto coverage would apply for circumstances where the vehicle is owned by the employee or borrowed from a friend.
Your business equipment is key to allowing your company to conduct business and generate revenue. If it gets damaged and you’re unable to repair or replace it quickly, it could result in having to turn down jobs and lose income. For this reason, business equipment coverage can help ensure that you have the means to repair or replace business equipment that might get damaged.
If you have a physical location for your pressure washing business, you may want to consider property insurance to guard against damage to your company’s offices. This coverage protects against various forms of damage, such as physical damage or vandalism. It can also protect against damage from other events such as hazardous weather, flooding, and fires. Depending on the property insurance you choose, you may also get coverage for business contents.
If you’re looking to combine property insurance with general liability, consider getting a business owner’s policy (BOP). A BOP combines liability and property damage into a single policy, and choosing one can often save you money and help simplify the management of your insurance policies.
Workers’ compensation insurance offers protection in the event you or an employee of yours gets injured or ill while working. This can handle expenses related to things like hospital bills, lost wages from being unable to work, disability, and costs associated with rehabilitation.
One example of how this could help you is when an office worker develops chronic wrist pain as a result of typing on the keyboard constantly for multiple years. Here, the medical costs of getting it treated could be covered under workers’ compensation. Similarly, if an employee of yours becomes injured from a pressure washing job and is unable to work while recovering, workers’ compensation coverage could cover their lost wages.
Professional liability protects you in the event that a client claims you failed to provide the services you promised, which subsequently resulted in reputational or other monetary damages. This might occur if your pressure washing business failed to complete its services by the time it initially agreed to, or if it failed to complete a portion of the promised work.
If this subsequently resulted in your client experiencing harm to their reputation or otherwise losing money, you’ll definitely want to have one of the best professional liability insurance companies defending you.
Where to get pressure washing business insurance
You can get pressure washing insurance from insurance brokers or individual insurance carriers. Insurance brokers can save you time by allowing you to work with a dedicated specialist who will help you choose the best coverages based on your unique company circumstances and needs. However, it does come with some downsides, as you may not be able to directly handle the policy through the broker, and customer service hours may be limited.
If you’re unsure of where to start, I recommend beginning with our list of the best and cheapest general liability insurance companies. There, you can choose companies that are competitively priced, yet still offer outstanding features and quality of coverage.
Frequently asked questions (FAQs)
This can depend on your state. However, even if it’s not required in order to conduct business, I strongly urge you to get it, as it can protect you against financial hardships in the event of an accident. Even a single instance of accidental damage to an individual person or property could force a business into bankruptcy.
You can expect to pay around $1,000 to $2,000 per year for general liability insurance, though the amount can go lower or much higher, depending on your circumstances. However, you can also opt to pay for additional types of insurance depending on the circumstances you’re likely to encounter as a business. Note that premiums will vary based on your business and policy details. Some examples of this include your business location, payroll size, revenue, years of experience, coverage limits selected, coverage types, and deductibles chosen.
Pressure washing insurance can cover accidental damage to property and bodily injury. Depending on the type of insurance you get, it can also cover instances of damage to your own business property, equipment, and claims arising from personal and advertising injury.
Bottom line
Running a pressure washing business isn’t without its risks, as you could inadvertently cause damage to a client’s home or other personal property. Regardless of how small or large your pressure washing operation currently is, it’s important to protect its future against potential liability claims. I recommend Thimble for your insurance needs, given its flexibility in offering coverage by the hour, day, month, or year, perfect for all types of businesses.
