What Insurance Do Toronto Pest Control Businesses Need?

What Insurance Do Toronto Pest Control Businesses Need?

July 18, 2024 / 5 mins read

Your Toronto pest control business gets rid of problems that bug people. Your job isn’t without risk, though. Pest control insurance can be customized to give you the coverage you need.

When you’re dealing with on-the-job hazards, pest control insurance protects you from an accident or mishap whether you are working in a Toronto residential home or a commercial building.

If you own a pest control company in Toronto, Greater Toronto Area (GTA) or anywhere in Ontario, your Western Financial Group business insurance expert will give you top-notch commercial insurance advice and at the right value for you.

What is pest control insurance?

When you run a Toronto pest control business, you are getting rid of unwanted rodents, bed bugs, cockroaches, and other pesky insects or creatures with the use of chemicals, traps, or barriers.

Pest control insurance is insurance that specifically covers the risks that you face as a residential or commercial exterminator.

Without pest control insurance, you would be responsible for paying for an accident, incident, or mishap out of your pocket. Could you afford that as a Toronto pest control contractor?

Who needs pest control insurance?

  • Residential and commercial pest control companies
  • Fumigators
  • Insect control companies
  • Wildlife control companies
  • Rodent control companies

How much does pest control insurance coverage cost?

There isn’t one fixed price for the cost of insurance for Toronto pest control businesses.

The following factors are usually taken into account for pest control insurance:

  • What services do you provide?
  • Number of employees
  • Years in business
  • Annual revenue
  • Location
  • Any past claims
  • Value of tools and equipment
  • Any professional certifications

Examples of how pest control insurance protects you

  1. Residue was left behind after fumigation, making the owners of the home and their children sick. They have sued your Toronto pest control company. Your pollution liability insurance and commercial general liability insurance can help cover your legal fees and any uninsured medical expenses.
  2. Cyber thieves hack your computer system, stealing your client’s financial information. Your cyber liability insurance can help you recover financially from a cyber-attack and restore your computer system.
  3. Tools and equipment have been stolen from your Toronto commercial/residential pest exterminator business. Your tools and equipment insurance coverage provides financial protection for any transportable tools or equipment that your pest exterminator business uses to do work. Any item valued at less than $1,500 is considered a tool. Anything valued above $1,500 is considered equipment.

What’s in a pest control insurance package?

Commercial general liability (CGL) insurance

Pest control brings risks. CGL insurance is essential for your Toronto pest control business because a supplier/customer or member of the public could get injured or their property damaged as a result of your work.

If you were sued, commercial general liability insurance would cover the legal costs to defend the claim against your Toronto business in court, as well as costs to cover damages to compensate third parties.

What kind of risks does commercial general liability insurance help cover?

  • Injury to a third party who is not your employee
  • Damage to someone’s property
  • Damage to rented property
  • Medical bills if someone is injured
  • Legal costs and settlement costs of liability lawsuits filed against you
  • Liability lawsuits related to slander and libel

Pollution liability insurance

It’s strongly recommended that Toronto pest control businesses have pollution liability insurance. You may also hear it called environmental insurance.

Pollution liability insurance helps cover the cost of damages to a customer’s property or to their health caused by a toxic substance you used in the course of your work in pest control or pollution you’re responsible for creating as a result of your work.

Pollution liability can help cover legal fees, medical bills, and clean-up costs.

Professional liability insurance

This type of insurance helps cover claims against professional negligence, errors/mistakes, or failure to deliver a professional service. For example, if a client weren’t satisfied with the quality of the pest control services you provided and the pest problem returned, your business could be held liable.

Professional liability insurance can help cover your legal costs and related costs.

Tools and equipment insurance

Any item valued at less than $1,500 is considered a tool. Anything valued above $1,500 is considered equipment.

Tools and equipment insurance provides financial protection for any transportable tools or equipment that your Toronto pest control company uses to do work.

Tools and equipment Insurance can provide reimbursement to repair or replace tools and equipment if they are lost, damaged, or stolen. Insured events apply to tools and equipment that are vandalized, stolen, lost, or damaged by fire or flood.

Mobile property insurance

If you regularly move equipment to different work locations as part of your Toronto pest exterminator business, mobile property insurance provides coverage for property that you don't store at a fixed location, or for equipment routinely taken off site.

Mobile property insurance covers transit. It also covers theft that could happen due to property not being stored in a secure location, as opposed to commercial property insurance that covers property generally expected to be in a specific location.

Commercial property insurance

It provides financial support to replace or repair your Toronto pest company’s office or equipment storage warehouse if it is damaged by a flood, fire, or severe weather. It also covers vandalism and theft.

Commercial property insurance also covers the building’s contents such as computers, furniture, tools, equipment, and inventory. Commercial property coverage also extends to protect others’ property that is under your care.

Cyber liability insurance

Do you keep client information online and take online payments? If so, your Toronto pest control business could be hacked by cyberthieves. Cyber liability insurance will help protect you financially from a cyber-attack.

Without cyber insurance, you will have to pay out of your pocket for the cost of restoring your computer system. You may also be liable for damages to third parties whose information has been stolen and you may have to pay for notification expenses to inform your Toronto area customers affected by a breach.

Commercial vehicle insurance is important: When you or your employees are on the road travelling to a job site in Toronto and anywhere in-between, commercial vehicle insurance may cover your vehicles in the case of an accident. Your personal vehicle insurance will not cover you in the case of an accident if the work is related to your Toronto business.

Here’s an insurance checklist for your Toronto pest control business:

  • Do you have the best Toronto business insurance rate that suits your work?
  • Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for you?
  • Are you or your employees using personal vehicles for work?

What do I do if my Toronto pest control business has an insurance claim?

  • Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
  • Know your policy so that when you contact your broker you are familiar with what will be covered or not.
  • Document the damage. Take photos right away and write down what happened.
  • Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
  • Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
  • Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.

Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get your Toronto pest control company the right commercial insurance package. Our experts are available now to help you navigate the commercial insurance journey to protect your Toronto business.

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