How Much is Pressure Washing Insurance? Cost Considerations For Your Business
Insurance is vital for pressure washing businesses, and if you think you can skate by without it, you’re only setting yourself up for future bills and lawsuits. All it takes is one slip and fall, equipment malfunction, or employee injury, and suddenly, your business could be in harm’s way.
But if you’re just picking up your first clients or in between coverage, we understand that pressure washing insurance costs can be a stressor on your liability sheet. Many entrepreneurs are even tempted to find the cheapest pressure washing insurance possible to offset costs.
As experienced members of the pressure washing industry in Southeast Texas, we’re here to help you learn all about pressure washing business insurance costs. So, how much is pressure washing insurance in Texas?
Depending on your coverage, you can find quality liability insurance for around $2,000 to 3,000 per year, with add-ons for your equipment adding another $5,000 to $10,000 to your budget.
But if you’re regularly pressure washing commercial buildings for high-paying clients, going the extra mile to avoid cheap pressure washing insurance is a must. You’ll still be able to profit plenty without worrying about costly lawsuits or equipment replacement.
Learn all the factors affecting your insurance for pressure washing business costs below to find the perfect setup.
Do I Need Insurance for a Pressure Washing Business?
Making the jump into entrepreneurship is exciting but comes with many upfront financial requirements that feel daunting. How much does it cost to start a power washing business, including pressure washing insurance costs?
The costs can often exceed thousands of dollars before you get your first client. While there are wise ways to save on costs, like using equipment rentals at first, insurance is a different animal.
Legality of Pressure Washing Insurance in Texas
The Lone Star State has clear rules on insurance. All businesses in Texas require liability insurance for employees and commercial liability insurance for job sites. Therefore, pressure washing insurance in Texas is mandatory, and many clients won’t even let you begin work without showing proof of your insurance.
Protection Against Liability
Often, start-up entrepreneurs seek to save on pressure washing insurance costs to keep their overhead costs low. But it’s vital to weigh these costs against potential liability.
How much is pressure washing insurance going to cost your business?
Perhaps $1,500 for an entire year when you first get started.
Now, what if you, an employee, or a customer slips and falls because of your negligence?
You’ll be looking at tens of thousands of dollars in legal fees alone. Think about it–you’re dealing with high-powered equipment with ample force behind it, slippy surfaces, and the potential for unsafe practices by your employees or customers.
Just one fall, a faulty hose on your machine, or a tiny bit of extra force, you are suddenly being served a court summons by a lawyer.
But assuming you have something better than cheap pressure washing insurance, you can avoid this dilemma with the proper liability coverage.
Professional Credibility
When you first contact clients, it is crucial that you don’t show up with the cheapest pressure washing insurance possible. Many commercial clients, especially high-paying ones, won’t even consider companies with cheap pressure washing insurance, as the risk is too significant.
Spending a bit extra on pressure washing insurance costs will allow you to position your company as one that cares about getting the job done effectively and can be trusted with valuable property.
Factors Influencing the Pressure Washing Insurance Cost
So, how much is pressure washing insurance?
The answer will depend on several factors. Pressure washing business insurance costs are relative to where you are in your business journey, from the types of clients you service to the size of your staff and history of previous claims. Let’s break down each pressure washing insurance cost factor individually.
Business Size and Revenue
Larger companies feature additional equipment and staff, including more trucks and machines, all of which require insurance coverage.
Still, pressure washing insurance costs rising as your business expands is good–it means you have the revenue to afford expansion!
Types of Services Offered
Pressure washing companies have plenty of niches to service; the more you diversify, the higher your insurance costs will be. Specific jobs require different types of pressure washers, like small electric models for indoor jobs or large trailer-mounted gas machines for industrial settings.
Each machine requires equipment coverage. Additionally, higher-intensity jobs like industrial or maritime cleaning have a higher risk of injury, and your costs will increase accordingly.
Policy Length
How much is pressure washing insurance per month, compared to annually?
Insurance plans can have varied coverage options, from monthly to longer-term, covering three or more years. The longer your coverage, the lower your monthly pressure washer insurance cost.
Insurance companies view long-term customers as more stable and willing to discount your costs due to the guaranteed revenue.
Of course, if you’re just starting, a short-term plan could give you extra flexibility if you plan to expand, so paying a little more may be the way to go.
Coverage Limits
A crucial factor in any insurance plan is your coverage limits. The higher your limits, the more you must pay out of pocket for premiums. Coverage limits are the safety net of your insurance; a $100,000 coverage limit will ensure you don’t pay that amount from any lawsuit, while a $5,000,000 coverage limit works the same way.
On average, general liability will be around $1 or 2 million. If you go lower, you’re leaving yourself vulnerable to paying the remainder of lawsuits and claims, though you’ll also save on monthly premiums.
Location
Your service areas will also factor into your overall costs, especially if you have a central office. If you operate in high-risk areas prone to crime or natural disasters, you may be taking on extra risk in the eyes of insurers, increasing the premiums you pay for equipment coverage.
Claim History
Insurance companies operate on a “fool me once, fool me twice” mentality. If your business is in good standing and has no history of incidents, you’ll receive the best insurance prices.
However, any liability risk in your past, even at an individual level for you and your employees, and your premiums will rise significantly. This includes everything from property damage and slip-and-falls to worker’s comp claims for your staff.
Similarly, a longer operating history will also help lower your prices. Insurers still consider a new company risky, so expect pressure washing business insurance costs to decrease over time.
Deductibles
Deductibles represent the amount you must pay out of pocket before your coverage begins. This is standard for insurance companies; if you are willing and capable of taking on a bit of liability yourself, you’ll take necessary precautions to avoid risk.
Generally, the lower your deductible, the higher your premiums will be. Note that deductibles often range from $500 to $3,000, so you should weigh increased premiums against potential out-of-pocket payments.
How Much is Pressure Washing Insurance?
Now that you know all the factors that make up your premiums, let’s cover the costs you can expect. So, how much is pressure washing insurance?
General Liability Coverage
The bulk of your insurance coverage will be general liability. This covers everything from employees slipping (assuming they are wearing proper PPE, like non-slip pressure washing boots) to property damage caused by your machines, such as damage caused while pressure washing construction equipment.
The average cost is around $150 to $250 per month, leading to annual fees of $2-3,000.
Tools and Equipment Coverage
Your pressure washing equipment is the lifeblood of your business. The last thing you want is to invest in the best commercial pressure washer only to lose your machine to theft or damage.
Equipment coverage for large companies costs up to $10,000 per year but is often closer to $3-4,000 for startups. This allows you to not worry about pressure washer repair costs.
However, if you’re renting while you get started, you will instead pay rental insurance, which is often significantly cheaper.
Commercial Property Coverage
Finally, commercial property coverage is excellent if you have a physical office. Depending on your surrounding area, you may pay another $1,000 annually to protect your business against theft, fire, or vandalism.
A Word of Warning Against Choosing the Cheapest Pressure Washing Insurance
While it may be tempting to cut corners, protecting your vital business assets is critical, and the cheapest pressure washing insurance plans cannot handle it.
The Risks of Inadequate Coverage
Low coverage limit plans put your business at risk. If you are only covered for $100,000, but you or a staff member cause $500,000 in damage to the underlying surfaces on a client’s property, you’d still be on the hook for the remaining $400,000. This coverage gap could easily bankrupt your business.
Exclusions and Limitations
Plans with low premiums often contain hidden gaps in coverage that will sneak up on you at the worst possible time. For example, many plans do not cover certain types of accidents, such as chemical burns or damage from pressure washer streams, as this would occur due to your negligence.
These gaps will leave you open to risk and should be monitored closely.
Quality of Service
You get what you pay for with insurance. Low-quality insurance plans, including difficult claims experiences and poor customer support, are often frustrating. When disaster strikes, you need an insurer to have your back and take the stress away from your business.
Invest in Peace of Mind When Considering Insurance for Pressure Washing Business Costs!
While cheap policies seem nice on the balance sheet, you will more than pay extra expenses in terms of stress.
Instead, quality insurance policies will give you peace of mind as you begin your entrepreneurial journey, ensuring you are covered for all the scenarios that can arise while pressure washing.
Closing Thoughts on Pressure Washing Business Insurance Costs
Overall, pressure washing insurance is vital to your business’s success. A high-quality plan protects you against incidents, ensuring one accident or theft doesn’t bankrupt your business.
Insurance is just one part of the equation that gets your business off to a roaring start. You also need high-quality equipment!
Hotsy of Houston is the #1 place to find industrial pressure washers in Houston and across Southeast Texas. Our team of local natives has decades of experience in the field, providing you with the know-how needed to set you up for success.
We’ll work with you to determine the best equipment for your niches, like figuring out which half of the hot water vs cold water pressure washer is best for you. We have the best selection of industrial hot water pressure washers in Houston and industrial cold water pressure washers in Houston, each from Hotsy, the most storied brand in the industry.
You’ll also gain our insights on pressure washer sizing, including pressure washer GPM and pressure washer PSI. We’ll even help you decide between electric vs gas pressure washers depending on the job sites you typically service.
As the #1 home for industrial pressure washer rental in Houston, our team will walk you through how to rent a pressure washer, including how to use a pressure washer and all the rental fees and insurance costs.
Even after establishing your business, you can still come to us for short-term rentals for jobs outside your typical niche, such as pressure washer trailer setup for a large job site.
Beyond our pressure washer trailers in Houston, you’ll also have access to the best pressure washer accessories and pressure washer detergents from Hotsy. We’ll show you the best detergent for pressure washers for various stains and jobs, including how to add soap to pressure washers.
While our machines are built to last, you’ll also have access to the #1 home for industrial pressure washer repair in Houston, as we are the area’s only authorized Hotsy repair center.
If you enjoyed learning about insurance for pressure washing business costs, check out our blog for more helpful tips!
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Otherwise, if you’re ready to get your pressure washer business off to a fantastic start, talk to our team! Our guidance will help you do things correctly, building a foundation for future entrepreneurial success.
