How Much Does Junk Removal Business Insurance Cost? 2025 Rates

In 2025, U.S. junk removal businesses can expect to pay between $1,200 and $1,800 annually for comprehensive business insurance, averaging $100 to $150 per month. The primary cost drivers are business size, location, services offered, employee count, coverage limits, claims history, and chosen deductibles.

How Much Does Junk Removal Insurance Cost?

Junk removal insurance typically costs between $1,200 and $1,800 per year, or about $100 to $150 per month. This is just a general estimate, your actual cost may be more or less. Factors like business size, number of employees, and services offered all play a role. A basic one-truck operation will usually pay much less than a larger company.

Every junk removal business faces different risks, which affect insurance rates. Hauling hazardous waste or entering customer homes can increase your premium. The way you dispose of junk, recycling, donating, or dumping, also matters. Higher-risk activities mean more coverage, and therefore, higher business insurance costs.

Your location is another major factor in pricing. Businesses in high-crime or high-traffic areas often pay more. The type of equipment you use and your driving history also influence costs. Insurance companies look at all of this to customize your coverage and premium.

Here are some of the biggest cost drivers:

• Number of employees (affects workers’ comp and liability)
• Property size and value (affects commercial property coverage)
• Past claims history (insurers charge more if you’ve filed claims)
• Business interruption coverage and other add-ons

Understanding these variables can help you better estimate your insurance needs and prepare for the real costs of protecting your junk removal business.

Average Junk Removal Insurance Costs For Coverage Types

When it comes to protecting your junk removal business, different types of insurance cover different risks. Understanding the average cost, coverage details, and what influences pricing for each policy type can help you build a more effective insurance plan. Here’s a closer look at the major coverages most junk removal businesses need.

• General liability insurance: $100 per month
• Business owner’s policy: $110 per month
• Workers’ compensation insurance: $260 per month
• Commercial auto insurance: $180 per month
• Contractor’s tools and equipment: $14 per month
• Professional liability insurance: $79 per month
• Commercial umbrella insurance: $76 per month
• Builder’s risk insurance: $110 per month

General Liability Insurance

The average cost of general liability insurance for a junk removal business is about $100 per month.

General liability covers third-party bodily injury, property damage, and advertising injuries. For example, if a junk removal worker accidentally damages a customer’s fence while hauling items out of their yard, this policy would help pay for the repairs. It can also cover legal fees if the customer decides to sue. This protection is essential for everyday accidents that can happen on the job.

Typical policy limits are $1 million per occurrence and $2 million aggregate.

Factors that influence the cost include the business size, location, customer traffic volume, previous claims history, and any subcontractors or additional insured endorsements.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $110 per month for a junk removal business.

A BOP bundles general liability insurance with commercial property insurance. It protects against customer injuries, property damage, and loss or damage to your business equipment and property. For example, if a fire breaks out in your storage area and damages your junk removal tools, truck parts, or office space, the BOP would help cover the repair or replacement costs. It’s a convenient and cost-effective way to protect both your operations and physical assets.

Typical policy limits are $1 million per occurrence and $2 million aggregate for liability, with separate property coverage limits based on the value insured.

Cost factors include the property value, location risk (such as flood or crime rates), business revenue, and whether you opt for actual cash value or replacement cost coverage.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a junk removal business is around $260 per month.

Workers’ comp covers medical bills, rehabilitation, and lost wages for employees injured on the job. For example, if an employee cuts their hand while handling broken furniture during a junk pickup, workers’ comp would cover the cost of stitches, any follow-up treatment, and a portion of their income if they need time off to heal. This ensures your team is protected and your business stays compliant with labor laws.

Policy limits are regulated by each state, but typically include medical costs and a percentage of lost wages without a set cap.

Premiums are influenced by the size of your payroll, the type of work employees perform, your claims history, and any implemented safety programs.

Commercial Auto Insurance

The average cost of commercial auto insurance for a junk removal business is about $180 per month.

Commercial auto insurance covers vehicles owned or used by the business for accidents, theft, vandalism, or damage. For example, if one of your drivers backs the junk truck into a parked car while leaving a job site, this policy would help pay for the repairs to both vehicles and cover any third-party injury claims. It’s essential coverage for businesses that rely on trucks or vans for daily operations.

Factors influencing the cost include the number and type of vehicles, the value of vehicles, and your claims history.

Contractor’s Tools And Equipment

The average cost of contractor’s tools and equipment insurance for a junk removal business is about $14 per month.

Contractors tools and equipment insurance covers the repair or replacement of tools and equipment used in your business if they are lost, stolen, or damaged. For example, if someone breaks into your junk removal truck overnight and steals your power saws, hand tools, and loading equipment, contractor’s tools and equipment insurance would help pay to replace the stolen items. Without this coverage, you’d have to pay out of pocket to get back up and running.

The cost of contractor’s tools and equipment coverage depends on the value of your tools and equipment and the type of work you do.

Professional Liability Insurance

The average cost of professional liability insurance for a junk removal business is about $79 per month.

Professional liability insurance (also called Errors and Omissions Insurance) protects your business if a customer claims you made a mistake, gave bad advice, or didn’t do the job properly, and it caused them a financial loss.

For example, if a junk removal company forgets to clear out a basement as promised, and the customer misses a deadline to rent or sell the property, they might sue for damages. Professional liability insurance would help cover legal costs and any compensation owed to the customer.

The cost of professional liability insurance depends on things like how much coverage you want, how big your business is, and the kind of junk removal services you provide.

Commercial Umbrella Insurance

The average cost of commercial umbrella insurance for a junk removal business is about $76 per month.

Commercial umbrella insurance gives your business extra protection by adding more coverage on top of your existing liability policies (like general liability or commercial auto). It kicks in when the costs of a claim go over the limits of your other insurance.

For example, if your junk removal truck causes a major accident that injures several people, and the medical and legal costs go beyond your commercial auto insurance limit, umbrella insurance would cover the extra amount. Without it, your business would have to pay the difference out of pocket.

The cost of commercial umbrella insurance mainly depends on how much extra coverage you choose to buy.

Builder’s Risk Insurance

The average cost of builder’s risk insurance for a junk removal business is about $110 per month.

Builder’s risk insurance is a special type of property insurance that covers buildings and materials during construction or renovation. It protects against damage from things like fire, theft, vandalism, or storms while the work is still in progress.

For example, if your junk removal business is building a new office or storage facility, and a storm damages the unfinished structure or materials on-site, builder’s risk insurance would help pay for repairs or replacements. This coverage only lasts during the construction period.

The cost of builder’s risk insurance depends on how much the building is worth, including the cost of materials and labor.

What Factors Impact Your Junk Removal Insurance Costs?

Junk removal insurance premiums are carefully calculated by underwriters based on your business’s risk profile. Factors like the type of junk you remove, the areas you work in, the number of employees, and your past insurance claims all affect how much you’ll pay for coverage.

Type Of Junk Removal Services

The kind of junk you haul affects your insurance cost. Businesses that remove heavy construction debris or hazardous waste usually pay more than those handling household or office cleanouts. Riskier jobs mean higher premiums.

Disposal Methods

If your business deals with dangerous materials or dumps waste in high-risk areas, your liability risk goes up. Proper disposal and recycling can help lower your risk and possibly reduce your premiums.

Location

Working in big cities or high-crime areas can raise your insurance costs. Businesses in safer, suburban areas with fewer claims tend to pay less for coverage.

Size Of Your Operation

The more trucks, employees, and job sites you manage, the more chances there are for accidents or damage. Bigger teams also mean higher workers’ compensation costs.

Equipment And Property Value

Expensive tools, trailers, and storage spaces increase the cost of property insurance. If you rely on power tools or vehicle attachments, you may want extra coverage for equipment breakdown or theft.

Policy Limits And Deductibles

Higher policy limits give you better protection but cost more. Choosing a higher deductible can lower your monthly premium, but you’ll pay more out-of-pocket if something goes wrong.

Claims History

If you’ve had many past insurance claims, insurers may charge you more, seeing you as a higher risk. A clean claims record can help you qualify for lower rates or discounts.

How To Lower Your Junk Removal Insurance Costs

Running a junk removal business  is expensive, but your insurance bill doesn’t have to break the bank. While you can’t eliminate the need for coverage, you can take smart steps to reduce your premiums without sacrificing protection. Here are some practical ways to lower your junk removal insurance costs:

1. Bundle Your Policies

One of the easiest ways to save is by bundling multiple policies. Most insurers offer a Business Owner’s Policy (BOP) that combines general liability and property insurance at a lower rate than if you bought them separately. If you also need workers’ compensation, bundling both through the same provider can lead to additional discounts. Not only does this simplify your paperwork, but it also makes your coverage more cost-efficient.

2. Ask About Discounts

Insurance companies often reward businesses that commit to a policy long-term. Ask your provider if they offer multi-year discounts for signing a two- or three-year agreement instead of renewing annually. You might also qualify for lower rates if you pay your premium in full instead of in monthly installments.

3. Implement Safety Measures

Accidents can be costly for both your junk removal business and your insurance company. Taking steps to make your work safer can help lower your insurance premiums over time. For example, training employees on proper lifting techniques, using safety gear like gloves and back braces, keeping trucks and tools well-maintained, and making sure job sites are free of hazards can reduce the risk of injuries. Fewer accidents mean fewer claims, and that can lead to lower insurance costs.

4. Create A Safe Working Environment

A strong safety program can help lower workers’ compensation costs for your junk removal business. This includes training employees on proper lifting techniques, safe handling of heavy or sharp items, using protective gear, and keeping work areas clear and organized. Having clear emergency plans and regular safety checks also helps. Fewer accidents mean fewer claims, which can lead to lower insurance premiums over time.

5. Adjust Your Deductible

Your deductible is the amount you pay out of pocket before insurance coverage kicks in. Choosing a higher deductible can significantly reduce your monthly premiums. Just make sure you can comfortably cover that amount if a claim arises.

By taking these steps, you not only save money but also make your business a safer, and more resilient business.