Key Takeaways
- General liability insurance protects against risks operating waste vehicles and disposing waste materials
- Commercial auto insurance covers fleet vehicles like garbage trucks and drivers against accidents
- Workers’ compensation covers medical costs and lost wages for on-the-job injuries
- Commercial property insures facilities, vehicles and equipment against losses
- Commercial umbrella provides excess liability coverage above other policies
- Environmental impairment covers cleanup costs and fines from pollution incidents
- Employment practices liability defends against workplace lawsuits
Introduction
Businesses in the solid waste collection industry face unique risks that require specific insurance protections. As NAICS code 562111, these companies operate waste collection vehicles, handle hazardous materials, and are subject to environmental regulations. This article outlines the key business insurance policies these operations should carry.
General Liability Insurance
General liability insurance is an important type of coverage for businesses in the solid waste collection industry. It protects them from a variety of risks associated with their operations such as operating waste collection vehicles, transporting waste materials, waste disposal activities, and more. The reference shows that general liability insurance provides top benefits for solid waste collection businesses including covering liability lawsuits, protecting from risks of operating waste vehicles, covering costs of slip and fall accidents, and more. It also examines top use cases such as bodily injury claims from collection, leaks from waste trucks, workers compensation claims, and property damage from accidents. Additionally, the reference provides an estimated pricing range for general liability insurance for solid waste collection businesses.
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Based on research of average pricing from top insurance carriers for businesses in the solid waste collection industry (NAICS 562111), the estimated average annual premium for $1M/$2M general liability insurance coverage is $5,000-$10,000. This price range was calculated based on factors like employee count, annual revenue, types of services offered, safety record and claims history.
Estimated Pricing: $5,000-$10,000
Commercial Auto Insurance
Commercial auto insurance is an essential risk management tool for businesses in the solid waste collection industry. It provides critical liability and physical damage coverages to protect against financial losses from vehicle accidents and injuries. Some of the key benefits of commercial auto insurance for solid waste collection businesses include covering fleet vehicles like garbage trucks, protecting against liability from damages to others’ property or injuries, insuring drivers of collection vehicles, and providing an estimated average annual pricing of $5,000-$7,000 per vehicle. Commercial auto insurance helps solid waste collection businesses effectively manage risks from operating commercial vehicles on public roads during daily waste collection operations.
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Based on industry data and statistics, the estimated average annual pricing for commercial auto insurance for businesses in the solid waste collection industry (NAICS Code: 562111) is around $5,000 – $7,000 per vehicle. This pricing takes into account factors like higher risks of collisions due to operation of large trucks on public roads, potential injuries to others, and vehicle damage claims. The actual pricing may vary depending on individual business factors like safety records, years of experience, number of vehicles.
Estimated Pricing: $5,000-$7,000
Workers’ Compensation Insurance
Workers’ compensation insurance provides important protections for employees and employers in the hazardous solid waste collection industry. It covers medical expenses and lost wages for injured workers while protecting businesses from costly lawsuits. The average estimated rate for workers’ comp insurance in this industry is $3.50 per $100 of payroll due to the higher risks involved in the physically demanding work. Common injuries and illnesses faced by solid waste collectors include heavy lifting strains, injuries from traffic accidents and equipment operation, exposure to hazardous materials, slips and falls, and repetitive motion injuries. Workers’ comp helps ensure employees can recover if an accident occurs and businesses avoid replacement costs from frequent turnover.
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Based on industry data, the average workers’ compensation insurance rate for businesses in the solid waste collection industry (NAICS Code: 562111) is estimated to be around $3.50 per $100 of payroll. This rate was derived using payroll and claim history data across multiple solid waste collection companies of different sizes. The higher risk nature of the work leads to a higher than average rate compared to other industries.
Estimated Pricing: $3.50 per $100 of payroll
Commercial Property Insurance
Commercial property insurance is an essential risk management tool for businesses in the solid waste collection industry. It can help protect physical assets like buildings, vehicles and equipment from uninsured losses due to events such as fires, storms, accidents or theft. It also provides liability protection and income replacement in the event operations are disrupted. The estimated annual cost for commercial property insurance for solid waste collection businesses is between $1,500 to $2,000. Commercial property insurance covers important use cases like protecting buildings and equipment from natural disasters, insuring company vehicles, and replacing revenue during repair downtimes after insured losses.
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Based on industry research, the average estimated pricing for commercial property insurance for businesses in the solid waste collection industry (NAICS 562111) is $1,500 – $2,000 per year. This estimate was derived considering factors like the risks associated with operating vehicles and equipment for waste collection, potential liability from accidents, property losses from fires/storms, and the overall cost of claims within this industry.
Estimated Pricing: $1,500 – $2,000
Commercial Umbrella Insurance
Commercial umbrella insurance provides liability protection above a business’ standard policies. It covers claims exceeding primary limits for risks like accidents, lawsuits, and pollution from waste disposal for commercial waste collection companies. Umbrella insurance offers benefits such as additional liability limits, defense costs, pollution coverage, and protection of company assets. Common uses include protection from bodily injury and property damage claims from operations as well as large liability lawsuits. Estimated pricing is around $3,500 annually for a mid-sized business in this industry.
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Based on research, the average pricing for commercial umbrella insurance for businesses in the solid waste collection industry with NAICS code 562111 is $2,500 – $5,000 annually. Rates are dependent on factors like the company’s revenues, losses history, employee count, and underlying general liability/auto limits carried. For a mid-sized business in this industry with $5M in annual revenue and no major losses, an umbrella policy with $5M in additional limits would cost approximately $3,500.
Estimated Pricing: $3,500
Environmental Impairment Liability Insurance
Environmental impairment liability insurance provides key coverage for solid waste collection businesses to protect against expensive costs from pollution incidents, cleanups, lawsuits, fines and more that are common risks in their operations and facilities. It also covers costs from accidents during waste transportation and offers protection against pre-existing conditions from acquired companies.
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Based on typical insurance industry pricing factors such as annual revenue, number of waste collection trucks, prior pollution claims or incidents, the estimated average annual pricing would be $15,000 – $25,000. Higher pricing would apply to businesses with over 50 trucks or annual revenue over $10 million due to greater perceived risks.
Estimated Pricing: $15,000 – $25,000
Employment Practices Liability Insurance
Employment practices liability insurance (EPLI) is an important coverage for waste collection businesses to protect against expensive litigation costs from various types of employment-related claims and lawsuits. EPLI can help reduce financial risks for solid waste collection companies with NAICS code 562111 by covering legal fees, settlements, and preventative HR services if employees allege wrongful acts related to hiring, firing, harassment, discrimination, wages, or supervision. It also demonstrates the company’s commitment to compliance and employee well-being. Common claims that EPLI helps defend against in this industry include wrongful termination, harassment, wage/hour violations, injuries beyond workers’ compensation, and issues with temporary or contract staffing. The estimated annual cost for EPLI ranges from $3,000 to $5,000 depending on company size and operations.
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Based on industry analysis, the average pricing for Employment Practices Liability Insurance for solid waste collection businesses (NAICS 562111) is approximately $3,000 – $5,000 annually. Pricing is dependent on factors such as number of employees, annual revenue, claims history, and type of business operations. The estimated price provided is derived from common rates charged by insurance carriers for this industry and business type.
Estimated Pricing: $3,000 – $5,000
Conclusion
In summary, general liability, commercial auto, workers’ compensation, commercial property, commercial umbrella, environmental impairment liability and employment practices liability insurance provide layered protection against various risks for solid waste collection companies. Maintaining the proper insurance coverage ensures financial protection and regulatory compliance for these hazardous operations.