Pest Control Insurance
Pest control insurance covers various risks, including loss or damage to property, furniture, and furnishings that may be damaged by pests or even loss of income. The policy can also provide you with compensation for the cost of documenting incidents and providing evidence in the event of litigation.
The coverage varies depending on which company you choose to insure with. One thing almost every pest control insurance provider will offer is “hired and non-owned coverage.” This means that if someone not affiliated with your company damages or destroys property because of pests, the pest control insurance company will cover the damage. Another common benefit is reimbursement for uncovered losses when unavoidable circumstances cause an infestation despite all preventive measures.
A pest control insurance policy can also include workers’ compensation, paid holiday and sick leave and accidental death and dismemberment. It’s essential to consult a qualified insurance broker if you want to learn more about the benefits of pest control insurance.
What does pest control insurance cover?
Most pest control insurance policies cover losses due to rodents, termites, or bees. There are also covers for insect bites and stings, and some policies may also cover snake and spider bites. Accidental death and dismemberment is another essential feature that some policies may offer. Economic loss due to damage caused by a non-owned or non-hired vehicle, boat or aircraft is also covered under many policies. If a claim is made against you because of an infestation of pests, the policy will cover legal costs.
Business interruption insurance
Owners of small businesses may want to consider business interruption insurance, which is designed to cover lost revenue if an infestation prevents the business from operating normally. Many policies specifically exclude losses if the infestation or pest attack results from negligent behaviour by the insured or their employees. Those who provide pest control services need to be aware that, in many cases, their insurance policies will not cover damage to their client’s property. This is because the policy will generally state that any damage must directly result from a pest problem.
Plumbers, electricians and contractors should consider a policy that includes liability insurance. This can protect them from lawsuits when they are negligent or liable for property damage. Professionals should also consider legal defence coverage, which pays for a lawyer to defend them in court.
Business owners should be aware that income replacement insurance policies usually exclude any damage caused by pests. If you would like to be insured against this, make sure to specify it when agreeing on the policy. While some smaller businesses may consider this an acceptable risk, larger companies need to find another solution to the problem. The best option for business owners is to speak with a broker about a “premises liability” policy, which covers damages caused by hazards such as pests.
Small business income replacement insurance
Small business owners who are prevented from working because of a pest problem will eventually wish to replace their lost income. This is why some small business owners will consider taking out an insurance policy to offset the loss of income. These policies are designed to provide between 25 and 75 per cent coverage for insured losses in most cases. While this level of coverage may be more than enough, it may also be more expensive than you expect.
Many pest control insurance policies have a long list of exclusions, which means that they won’t cover items such as loss, damage or liability associated with pesticides or other chemicals used for pest eradication or treatment services provided by unqualified workers.
Which level of pest control insurance cover do I need?
Business owners looking for a policy that will cover their losses in the event of a pest infestation should also consider their cash flow. Income replacement insurance is one of the few ways to protect your business’s revenue stream.
The other option is to take out comprehensive business interruption insurance. This type of policy will cover all costs associated with an infestation, including revenue and expenses that may continue to be incurred as long as necessary to eliminate the threat and get your business back up and running.
If you are a pest control professional, a business owner or an insurance broker, keep in mind that the coverage offered by your company may be insufficient. If you are claiming the policy, you will have to prove that the infestation is the result of negligence on your part or that your employees did something wrong or misdirected the pest control professionals. In most cases, this will make it difficult for you to collect any damages from your insurance company for economic loss. However, there are still ways to claim some compensation for economic losses and legal costs.
Find out more about the importance of insurance here.
Other useful links about Business Insurance:
Zurich Business Insurance
Lifestyle Consultant Insurance
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