Specialized coverage so you don’t get swarmed.
Pest control & extermination business insurance provided by Rue Insurance.
Pest control and extermination businesses often overlook exposures that can pose serious risks to their businesses, employees, property, and environment. Working with a specialist can help fill those gaps in coverage.
Introduction to Exposures
We have specialized programs that allow us to be experts for our clients. One class of business we excel in is Pest Control and Exterminators. While no two pest control businesses have the same controls and exposures to risk, here are six risks that can affect your pest control company:
Property coverage is an exposure for real property, such as any owned buildings and other tangible assets owned by the business. When developing your risk profile, underwriters evaluate Construction, Occupancy, Protection, Exposure. In the insurance world, we refer to this as COPE.
- Construction is the location of the building, how it was built, when it was built, and the quality of the systems within the structure.
- Occupancy is who occupies the building and how the structure is being utilized.
- Protection refers to the protections in place to prevent loss. Examples of this could be the sprinkler systems and the responsiveness of the local fire department.
- And finally, Exposure, which is the risks of areas surrounding the building. For example, is the property within a flood zone? Is it built near a shoreline at risk of being damaged by tropical storms?
By knowing COPE, you can understand how underwriters analyze the risks posed to your property and your business. Working with an insurance specialist will help you and your business procure a more comprehensive insurance plan.
Liability coverage provides protection against claims resulting from injuries and damage to people and property. This covers legal cost and payouts for which you may be found liable. When evaluating pest control companies, underwriters look at the processes and safety measures in place. The responsible use and storage of chemicals are key to getting the best premium possible for your business:
- Are chemical applications done to manufacturer’s specifications?
- Are flammable chemicals labeled and stored in approved containers and spaces?
- Is the storage for chemicals properly secured?
By keeping chemicals in a well ventilated area or in separate locations from the offices or garage, you protect your assets and employees in case of a chemical spill or fire. Posting warnings near the chemical storage and treatment spots keep your business in compliance with the law, and show that your company handles risks responsibly. By limiting your exposures to these risks, you can Be Ready with Rue.
Inland Marine (Equipment) Exposures
Pest control companies require a multitude of specialized equipment. These tools can be the lifeblood of the company and are always on the go. However, that means they can be misplaced, damaged or stolen. Being without your tools can have a serious impact on your business. That’s why you want to make sure your specialized tools are covered by a specialized inland marine policy. Inland marine insurance is insurance for property in transit or stored at a site other than your main business location.
Working with an advisor that understands your business makes the insurance buying process easier. Even better, having a proactive advisor such as Rue Insurance, can help you implement the right coverages and programs to protect your company and lower your costs. For example, training employees to make a final sweep of job sites can prevent equipment from being left behind. By protecting your equipment on the move, you can be better protected with Rue.
Being a successful pest control company means spending quite a bit of time on the road. Traffic congestion, distracted driving and everyone in a rush increases the potential for an accident, even if your travel radius is small. Adding to this exposure are the specialized chemicals that extermination companies often transport. A small fender bender could turn into an environmental nightmare if the wrong chemicals are released.
However, when you work with a proactive advisor such as Rue Insurance, we can help you implement the right coverages and programs to protect your company and lower your costs. Running background checks, reviewing MVRs and implementing a vehicle maintenance program are just a few examples of programs that Rue can help you put in place.
These programs not only reduce the potential for a claim, they can lead to lower insurance costs and help make you a best in class insured. By qualifying your drivers and keeping your vehicle in great condition, you can Be Ready with Rue.
Environmental or pollution insurance policies fill coverage gaps for exclusions that are listed in liability or property insurance policies. Without this coverage, you are leaving your business open to financial loss should an incident occur.
Pest control companies operate with chemicals that can be considered pollutants if spilled or used in the wrong manner. Damages and clean up expenses related to a contaminant spill or accident are typically excluded under a standard lability policy. An environmental liability policy is an easy way to protect your business from financial loss should an incident occur. If you store large amounts of chemicals or utilize specialized vehicles with large tanks, your risk is much greater.
Workers Compensation Exposures
According to New Jersey law, businesses with employees – except for those covered by federal programs – are required to carry workers’ compensation insurance. However, there’s more to workers compensation than just carrying the state mandated minimum policy.
Workers Compensation helps not only cover medical fees, but lost wages from work-related injuries. This protects your business from financial risk and assists with indirect costs, like loss in productivity and the replacement and training of new exterminators.
Some examples of injuries that can occur to an exterminator on the job are:
- Contamination from chemicals used to treat pests
- Incidents with the pests your business was called in to exterminate
- Falls from elevated platforms
One problem that we have come across is when a claim occurs due to an operation that the business specifically stated on its application that it did not perform. Take the example of a fall from an elevated platform. If at the time of the application, your business states that you do not work on ladders or roofs and someone falls off of a ladder, you could be placing your business at risk of misrepresentation. This can result in the cancellation of the policy, and worse yet, a potential penalty or criminal charges for fraud.
By having an engaged and immersive conversation with us from day one, that continues at the time of renewal, we can continue to accurately represent your business and its operations on the market, and decrease the chance of a claim being denied due to outdated or incorrect information.
Reach out to us at Rue to get a comprehensive review of your existing coverage. We want to help you identify those gaps in coverage and make recommendations before a loss occurs, so you can make an informed decision of how you want to protect your business and handle your risk.
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