How Much Does Junk Removal Business Insurance Cost? 2025 Rates

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 usually costs around $1,200 to $1,800 per year, which works out to about $100 to $150 per month. This is only an estimate, your actual cost could be higher or lower. 

If you run a junk removal business, having the right insurance is important to protect your company, your employees, and your customers. The price can vary depending on factors like the size of your business, the number of employees, and the services you offer. 

Here are some of the biggest cost drivers:

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

Knowing these factors can help you figure out what insurance your junk removal business really needs and plan for the actual costs of keeping it protected. 

Average Junk Removal Insurance Costs For Coverage Types

The cost of junk removal insurance can vary depending on the type of coverage you choose. Different policies protect your business in different ways, such as covering accidents, injuries, or damage to property. Let’s have a look at the main types of junk removal insurance, so you can understand what to expect and decide which coverage is right for you. 

• 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 insurance is one of the most important types of insurance for a junk removal business. It protects your business if something goes wrong while you’re working. 

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.

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

Having general liability insurance gives you peace of mind because accidents can happen even when you’re careful. 

Policy limits: $1 million per occurrence and $2 million aggregate.

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on average annual premiums for junk removal businesses as reported by both small and large insurance agencies. Figures reflect typical coverage needs for liability risks such as property damage, customer injury, and environmental concerns. Actual premiums will vary depending on factors like business size, claims history, employee count, and regional risk exposure.

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 is a type of insurance that combines several coverages into one plan, making it easier and often cheaper for small businesses. For a junk removal business, a BOP usually includes general liability insurance and property insurance. 

Some BOP’s often include business interruption coverage, which helps cover lost income if your business has to stop working due to events like a fire or other damage. 

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.

Policy limits: $1 million per occurrence and $2 million aggregate.

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on average annual Business Owner’s Policy (BOP) premiums for junk removal businesses, incorporating state-specific liability environments, property coverage needs, and payroll ranges typical of both small independent haulers and larger multi-truck junk removal companies. Actual premiums will vary depending on your business’s size, claims history, number of employees, and insurer underwriting practices.

Workers’ Compensation Insurance

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

This policy is designed to protect your employees if they get hurt or sick while working. For a junk removal business, this could include injuries from lifting heavy items, using equipment, or accidents while driving to a job site. 

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

In many states, having workers compensation is required by law, and even when it’s not, it’s a smart way to keep your employees and business safe. 

Each state sets rules for policy limits, but generally, workers compensation covers medical expenses and a portion of lost wages, often without a fixed maximum. 

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on average annual Workers’ Compensation premiums for junk removal businesses, incorporating state-specific base rates, employee classifications, and payroll ranges typical of both small independent haulers and larger multi-truck junk removal companies. Actual premiums will vary depending on the size of the business, number of employees, claims history, and insurer underwriting practices.

Commercial Auto Insurance

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

Commercial auto insurance is a type of insurance that protects the vehicles you use for your junk removal business. Whether it’s a truck, van, or trailer, this insurance helps cover damage, accidents, or injuries that happen while the vehicle is being used for work. 

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

Since personal car insurance usually doesn’t cover business use, commercial auto insurance is essential for keeping your vehicles and business safe. 

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on average annual Commercial Auto Insurance premiums for junk removal businesses, incorporating state-specific base rates, vehicle usage patterns, and payroll ranges typical of both small independent haulers and larger multi-truck junk removal companies. Actual premiums will vary depending on the number of vehicles owned, driving records of employees, business mileage, claims history, and insurer underwriting practices.

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 protects the tools and equipment you use for your junk removal business. This can include things like hand tools, power tools, and other equipment needed to do your job. 

It’s especially helpful for small businesses that rely heavily on their equipment, as replacing tools out of pocket can be very expensive. 

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.

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on average annual Contractor’s Tools and Equipment Insurance premiums for junk removal businesses, incorporating state-specific liability environments, equipment replacement costs, and payroll ranges typical of both small independent haulers and larger multi-truck junk removal companies. Actual premiums will vary depending on the size of the business, number of employees, claims history, and insurer underwriting practices.

Professional Liability Insurance

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

Professional liability insurance (sometimes called Errors and Omissions Insurance) protects your business if a customer claims you made a mistake or were negligent while providing your services. For a junk removal business, this could happen if you accidentally damage a client’s property or fail to complete a job as agreed. 

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.

Having professional liability insurance gives your business extra protection against costly claims. 

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on average annual Professional Liability Insurance premiums for junk removal businesses, incorporating state-specific liability environments, employee classifications, and payroll ranges typical of both small independent haulers and larger multi-truck junk removal companies. Actual premiums will vary depending on the size of the business, claims history, number of employees, and insurer underwriting practices.

Commercial Umbrella Insurance

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

Commercial umbrella insurance is extra coverage that protects your business if you face a very large claim or lawsuit. It works on top of your other insurance policies, like general liability, commercial auto, or workers compensation. 

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.

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on average annual Commercial Umbrella Insurance premiums for junk removal businesses, incorporating state-specific liability environments, coverage limits, and payroll ranges typical of both small independent haulers and larger multi-truck junk removal companies. Actual premiums will vary depending on your business’s size, claims history, number of employees, and insurer underwriting practices.

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 protects buildings and structures while they are being built or renovated. For a junk removal business that also handles demolition or construction cleanup, this insurance can cover damage to  buildings from things like fire, storms, or accidents during the construction process. 

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

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on average annual Builder’s Risk Insurance premiums for junk removal businesses, incorporating state-specific liability environments, project values, and equipment coverage ranges typical of both small independent haulers and larger multi-truck junk removal companies. Actual premiums will vary depending on the size of the business, claims history, number of employees, and insurer underwriting practices.

Junk Removal Business Insurance Costs By Provider

Junk removal business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: These estimates are based on average annual premiums for junk removal businesses, considering both small and large agencies. Coverage typically includes general liability, workers’ compensation, commercial auto, property insurance for trucks and equipment, and pollution liability (for hazardous materials). Actual premiums will vary depending on business size, number of employees, fleet size, services offered (residential vs. commercial junk hauling), claims history, and coverage limits.

What Factors Impact Your Junk Removal Insurance Costs?

The cost of junk removal insurance can vary widely from business to business. Let’s look at what factors affect your premiums and understand what drives the price of your 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

Insurance is an important part of running a junk removal business, but it can be expensive. The good news is there are ways to lower your insurance costs without sacrificing protection. 

Here are some practical ways to lower your junk removal insurance costs:

1. Bundle Your Policies

Buying multiple types of insurance (like general liability, commercial auto ,and workers compensation) from the same company can often get you a discount. 

2. Increase Your Deductible

Choosing a higher deductible means you pay more out of pocket if something happens, but your monthly or annual premiums will be lower. 

3. Shop Around

Get quotes from multiple insurance companies. Different insurers offer different rates, and comparing them helps you find the best deal.

4. Pay Annually Instead Of Monthly

Many insurance companies give a discount if you pay for the full year upfront instead of in monthly installments. 

5. Implement Safety Measures

Training employees, using proper safety equipment, and following safety guidelines can reduce the risk of accidents, which may lower your premiums.