How much does pest control insurance cost?

Exterminators and pest control businesses pay an average of $117 per month, or $1,403 annually, for general liability insurance.

Also called public liability insurance, this policy covers common third-party lawsuits related to bodily injuries and property damage.

For example, a client could trip over a sprayer hose and break their ankle, or have an allergic reaction to a chemical that your business applied to their home. A general liability policy also covers any accidental property damage that happens while you or your employees are treating a client's property.

Additionally, general liability insurance helps pay for legal fees if someone sues your business over an advertising injury, such as copyright infringement or defamation. For example, an exterminator could get sued for invasion of privacy for posting photos of carpenter ants in a client's home on Instagram without their permission.

Below is the average general liability policy for pest control companies that buy from Insureon:

Insurance premium: $117 per month
Policy limits: $1 million per occurrence; $2 million aggregate

The per-occurrence limit is the maximum your insurance company will pay for a single covered incident, while the aggregate limit is the most the insurer will pay for all covered claims during the policy period, typically one year.

The cost of general liability insurance depends on factors such as the coverage limits and deductible you choose, whether you work from home or an office, your business income, and any additional insured endorsements. Coverages you can add include pollution liability insurance to cover pollution-related lawsuits, or excess liability insurance to boost your limits.

A popular way to save money is to bundle general liability coverage with commercial property insurance in a business owner's policy (BOP). A BOP provides financial protection against the most common lawsuits and business property damage.

Learn more about how your premium is calculated and how to save money on general liability coverage.

For small businesses that provide pest control services, the average cost of workers’ compensation insurance is $89 per month, or $1,068 annually.

This policy covers medical expenses related to employee injuries and occupational diseases, such as an employee who develops respiratory problems from exposure to pesticides. It also provides disability benefits while an employee is disabled or temporarily unable to work.

Most workers' comp policies include employer's liability insurance to protect against lawsuits from injured workers, though they give up their right to sue once they accept benefits.

Pest control businesses with employees typically must purchase workers' comp to comply with state requirements and avoid penalties. For example, businesses in California, Pennsylvania, and New York must carry workers' comp if they have one or more full-time or part-time employees. Florida businesses need coverage when they have four or more employees, and coverage is optional in Texas.

Since health insurance plans can deny claims for injuries related to your job, workers' comp coverage is also recommended for sole proprietors as a financial safety net and for peace of mind.

The cost of workers' comp depends on several factors, primarily the number of employees you have and their occupational risks. You can save money on workers' comp coverage by classifying your employees correctly and implementing a risk management plan to avoid work-related injuries and subsequent claims.

Pest control businesses and other companies that offer professional services pay an average of $43 per month for professional liability insurance, or $516 annually. This policy is sometimes referred to as errors and omissions insurance (E&O), or simply pest control liability insurance in your profession.

Professional liability insurance covers financial losses related to professional negligence or failure to provide services that meet the standard of care for your industry.

For instance, if a pest control operator fails to notice an infestation of termites that damages a client's house, their E&O policy would pay for the resulting lawsuit, including attorney's fees and a settlement or judgment.

Below is the average professional liability policy for professional services businesses that buy from Insureon:

Premium: $43 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $1,000

Professional liability insurance costs depend on several factors, especially your area of specialty, such as fumigation of bed bugs or termites. Factors like your claims history and the size of your business will also affect the cost. As with other types of insurance, you can save money on professional liability coverage by choosing lower limits or a higher deductible.

Reducing your risks also helps you avoid claims and keep your premium low. This includes clear communication with clients and thorough documentation of all communications and agreements.

Professional services businesses, including pest control companies, pay an average of $163 per month, or $1,954 per year, for commercial auto insurance.

Commercial auto insurance pays for legal fees, medical treatment, and repairs if your company vehicle injures someone or damages their property in an accident. It can also cover vehicle theft, vandalism, and weather damage.

This policy covers your business vehicles—but you'll still need tools and equipment insurance (a type of inland marine insurance) to cover sprayers, traps, and other business property that travels to jobsites.

Most states require commercial auto insurance for vehicles owned by a business. For personal, rented, and leased vehicles used for work purposes, look to hired and non-owned auto insurance (HNOA) instead.

The cost of commercial auto insurance depends on several factors, including your policy limits, additional insured endorsements and other coverage options, the value of your vehicles, and the driving records of anyone at your pest control business who is permitted to drive them.

Opting out of coverage you don't need, such as comprehensive auto insurance, will result in a lower premium.