Septic tanks are common in American homes, specifically in locations with poor drainage and a lack of connection with the main sewage network. Homeowners can rely on septic tanks for the safe disposal of wastewater from their properties. According to statistics, nearly 25% of Americans use them instead of the mains. It spells a lucrative business opportunity for tank maintenance companies.
As a business owner in this domain, you must do your bit to protect your employees and assets (just as in any other business). However, the risks run high in the industry, as you may have to deal with several dire situations, from a customer suing you for damaging their yard to an employee claiming compensation for bodily injuries and inhalation of toxic fumes while working.
The concept of business insurance is complex, but it is essential for every company. Yet 75% of American businesses are underinsured, and 40% of small companies have no insurance at all. It is vital to understand the necessity of insurance for your septic tank maintenance services because of the inherent risks. Here are some key facts you must know in this context:
Understanding the Threats of Septic Maintenance
Septic tank installation and maintenance are big businesses in the US, with a significant number of homeowners requiring these services. As a provider, you can expect high demand and optimal growth in the long run. However, that’s just one side of the picture.
Several things can go wrong during the installation and maintenance of septic systems. It is crucial to understand the threats in the first place and look for solutions to resolve them. Here are the possible issues you may encounter:
- Equipment dangers
- Mishaps and physical injuries
- Toxic contamination
- Product liability
- Property damage
Knowing these risks is only half the work, and getting insurance to cover them is the other half. But it can be complicated because you may miss out on some elements and end up with inadequate coverage. It may land you in a fix if something doesn’t go your way or a mishap occurs down the line.
Essential Insurance Elements for a Septic Tank Maintenance Company
When it comes to buying insurance for your tank maintenance company, you must identify the risks and provide them with proper coverage. Providers like WaterColor Management emphasize the importance of risk management with optimal septic insurance that addresses every possible threat you may encounter while serving your clients.
They suggest picking a policy with water industry-specific clauses, such as bacteria, pollution, and lead coverage, to address all your needs and challenges. The website also has insightful success stories of septic service companies that invested in insurance solutions.
General liability coverage gets you on the right track, but addressing unique threats and risks is equally crucial. Ideally, tank installation and maintenance companies should look for an insurance solution covering the following areas:
- General and professional liability
- Workers compensation
- Products liability and recall, including mold, bacteria, and lead
- Completed operations liability
- Pollution liability, including HAZMAT
- Property and equipment insurance
- Commercial auto insurance
- Cybercrime and cyber liability
- Bonds
- Excess coverage
- Employee fidelity
The price of your septic company insurance policy depends on factors such as your location, number of employees, deductible, per-occurrence limit, and general aggregate limit. A septic company needs to spend only a few hundred dollars annually to cover all these risks. Consider it a small price for risk management and peace of mind because it can save you from big trouble if something goes wrong.
Additional Steps to Protect Your Septic Tank Maintenance Company
Investing in business insurance is the best thing you can do to safeguard your tank maintenance company from conventional risks. However, you can go the extra mile with your defense plans by adopting additional measures. Here are a few worth considering:
- Ensure legally-sound business documents and contracts with clients, employees, and vendors
- Protect your personal assets by setting up an LLC or corporation
- Maintain your corporate veil
- Stay relevant with industry regulations
- Keep pace with business licensing requirements
A Final Word
Buying septic insurance is one of the most critical steps in setting up and running a tank installation and maintenance company. But you may want to skimp on it because coverage isn’t always a legal requirement.
However, missing out on the safety net is the worst mistake you can make because the segment has a fair share of risks. Fortunately, insurance is the safest way to deal with liability. Most importantly, avoid liability in the first place by practicing caution during every project.
