How to Protect Your Small Pressure Washing Business

Pressure washing businesses are popular and valuable businesses to start. As of 2021, over 135,000 pressure washing businesses exist in the United States, with a revenue forecast of $2.3 billion by 2025. 

Starting a pressure washing business allows you to get up and running as a sole proprietor while leaving plenty of room for expansion over time. Pressure washing business plans allow you to be flexible. You might choose to start out as a mobile operation with one or more crews or opt to have a commercial location that customers come to. 

Regardless of which path you choose, having the proper pressure washer insurance will help you comply with local regulations, and protect the company from everyday risks that may arise.

Surety Bonds

In some regions of the country, for instance, your pressure washer business will need to be bonded. Surety bonds are guarantees that you will perform the work you are contracted for, within the timeframe and budget that you promised. Some pressure washing businesses service commercial buildings, while others may contract to maintain public grounds. You might also choose to service construction or trucking companies as well. Whether you choose to focus on one area of expertise or several, your company will not be able to sign these contracts until you are legally bonded and insured.

General Liability

General liability insurance includes a variety of useful levels of protection for your small business. These include protection against physical injuries, property damages, personal injuries, and premises damages.

If a person breaks their leg because they slip on a wet surface that your company cleaned, they’ll need medical attention and services. Likewise, if the soap you use to pressure wash a vehicle causes the paint to peel, that customer will want you to pay for the repairs. These protections fall under the bodily injuries or property damages sections of your policy. General liability pays for the medical attention, whether it be emergency room care, hospital stay, or rehabilitation services. It also pay for the cost of repairing property that has been damaged.

Another part of the general liability policy helps you to avoid expensive lawsuits and settlements that can potentially arise from physical injuries. When injuries are minor, there is a medical expense limit included in the policy that lets you offer to pay for basic care.

Liability insurance also protects your pressure washing business if a problem arises from your advertising. Whether you use traditional newspaper or TV ads, or you use online search engines and social media, complaints are an everyday risk. A competitor may claim that your ads speak badly of them, or a graphic designer may claim you’re in violation of their copyright. If these lawsuits arise, your insurance policy helps you defend against them.

Premises damages apply to property that your company rents or leases. Your company may have static locations that it offers services from. Likewise, you may have a small storefront that sells related products. When those properties are rented or leased, you must carry insurance that protects the property from potential damages that your company may cause. If your company operations or employees cause damages, the owner of the property will not be left to pay for the repairs out of their pocket. Your liability insurance will pay for it instead. 

Keep in mind that sometimes people make unwarranted claims against businesses. And unfortunately, the company must still spend time and money to defend themselves. General liability coverage pays for your legal defense against such claims so that you don’t have to. When applicable, it pays for settlements or judgements as well.

Commercial Auto Insurance

Whether you are operating as a sole proprietor or you have multiple crews working simultaneously, you use one or more vehicles to conduct business. While it’s best to use business vehicles, many pressure washers start out using a private vehicle for work. Unfortunately, a private vehicle’s insurance policy will not cover you properly if you’re in an accident. Most personal car insurance policies will not pay for lost tools or equipment, and many will not provide any accident coverage if you’re using your vehicle for business purposes. 

Commercial auto insurance is designed for the specific needs business owners like you have. If you or one of your work crews is involved in an accident, this insurance policy will protect you from uninsured motorists. It also compensates for motorists that don’t carry enough coverage to cover the full amount of damage they caused.

Additional Protections

Other ways to protect your pressure washing business include carrying tools coverage, and workers compensation. Most location in the United States require you to carry worker’s compensation coverage if you have employees. This protects your company as well as the employees if a workplace accident injures them.

Tools coverage protects you from losses that can occur when tools or equipment is stolen or vandalized. This coverage extends to tools and equipment you rent or lease, as well as those you own. With this protection, you save yourself from having to pay out of pocket to replace these valuable and expensive items.