Carting Insurance: Waste Hauler & Garbage Collection Insurance

Carting, waste hauling, and garbage collection businesses face a lot of perils.  Employee error can result in the spill of pollutants. Business operations can cause injuries or property damage to someone. Employees might sustain injuries or diseases. 

You want comprehensive coverage to cover the risks that greatly endanger established and startup garbage collection businesses. To provide protection, carriers underwrite carting or waste hauler insurance. In this guide, know what this is, how much premiums cost, where to get the best coverage, and more.

What is Carting Insurance?

Carting insurance is a coverage especially underwritten for businesses in the waste hauling industry.

It doesn’t function on its own but provides protection through the different business insurance policies a policyholder can remove or add to its terms. 

Also called valet trash, waste management, waste disposal, garbage collection, or waste recycling insurance, you’re eligible for this specialty coverage if you own a:

  • Residential waste collection business

  • Medical waste collection business

  • Scrap collection and recycling business

  • Electronics recycling business

Carting Liability Insurance

CoverWallet  NEXT (Best) Aligned Insurance
Per occurrence limit  $1,000,000 $1,000,000 $5,000,000
Aggregate limit  $2,000,000 $1,000,000/$2,000,000 $5,000,000
Products and completed operations aggregate limit  $2,000,000 $1,000,000 Excluded
Advertising injury coverage aggregate limit  $1,000,000 $1,000,000 $5,000,000
Tenant’s legal liability coverage limit  $1,000,000 $100,000 $5,000,000
Waiver of subrogation included? Yes No No
Hired/non-owned auto liability coverage included? Yes No No
Equipment breakdown floater included? No  Yes No
Can you get a certificate of insurance online? Yes Yes No 
Name additional insureds? Yes Yes No 
Deductible $0 $0 $0


Your waste disposal business’s operations can result in accidents that result in third-party bodily injuries or property damage. Waste hauling insurance protects you against this exposure through its general liability policy. 

About 100% of waste haulers purchase general liability insurance. The table above compares the features of general liability insurance from companies that provide coverage for garbage and waste collection businesses. 

Carting liability insurance kicks in when your waste disposal business is sued for personal injuries or property damage by a client, vendor, a random person, or any other third parties. 

Understanding how general liability insurance for carting business primarily works is a walk in the park. You only need to remember that:

  • It covers the medical treatment of the person who files a bodily injury claim against your business

  • Reimburse the losses of third parties whose property got damaged because of your waste disposal business’s operations

  • Cover attorney fees, administrative costs, court judgements, and other legal expenses

General liability insurance doesn’t cover claims filed by employees, partners, and other individuals who are part of your business’s daily operations. 

Also, it doesn’t cover your business’s liability for auto accidents or errors and omissions. 


How Much Coverage Do I Need to Work With Water Treatment Businesses?

Water treatment plants will require your waste hauling and garbage collection business to have a $1 million-$2 million general liability coverage. It’s a plus if your general liability insurance has an environmental liability endorsement. 


Professional Liability Insurance For Waste Haulers

CoverWallet (Best) NEXT
Per occurrence limit  $1,000,000 $10,000/$25,000
Aggregate limit  $2,000,000 $20,000/$50,000
Name additional insureds? Yes Yes
Waiver of subrogation included? Yes No
Deductible  $500 $500


Employees of your waste disposal business are expected to observe the highest level of care while working. However, mistakes happen sometimes. This can result in a costly lawsuit if someone sustained financial or economic losses as a result. 

Shield yourself from this exposure by adding a professional liability policy to your garbage collection insurance. The table above compares the features of professional liability insurance from companies that cover waste haulers. 

Professional liability insurance for carting companies kicks in when a claim is filed because an employee of your business caused economic or financial losses by committing any of the following:

  • Negligence

  • Misrepresentation

  • Missed deadlines

  • Violation of good faith

  • Violation of fair dealing

  • Inaccurate advice

  • Breach of confidentiality 

So how does professional liability insurance work? This type of waste disposal insurance policy provides monetary compensation for the economic or financial losses of the claimant. It will also cover the cost of attorney fees, administrative costs, and other legal expenses.

Carriers underwrite professional liability insurance as a claims-made policy or occurrence policy. 

Occurrence professional liability insurance provides coverage regardless of when you decide to file a claim. That said, you can decide to report a covered peril on the time it happened or some time after it has occured. 

Claims-made professional liability insurance, on the other hand, will only help if you decide to file a claim at the time a covered peril happens. This insurance doesn’t allow for any long delays in the claim reporting period. 

Garbage Collector Excess Liability Insurance

An excess liability policy is offered as an optional inclusion to your waste management insurance program. 

Buy excess liability insurance to shield yourself from out of pocket costs when your general liability policy or professional liability policy exhausted its limits or can’t fully cover a claim. 

Excess liability insurance provides backup funds to your general liability or professional liability insurance. Here’s an example for you to understand:

  • Suppose your waste disposal business faces a $3 million negligence lawsuit. Your professional liability insurance only has $2 million. And so, there’s still $1 million that needs to be accounted for, which excess liability insurance can cover. 

Understand that excess liability insurance doesn’t provide any type of protection against claims. It only supplements the limits of your general liability or professional liability policy. That said, you can’t use this type of valet trash insurance to cover settlements and legal defense expenses.

Excess liability insurance is purchased in increments of $1 million. It’s possible for waste haulers insurance programs to offer this as part of general liability insurance or professional liability insurance. 

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Commercial Property Insurance For Waste Hauling Business

CoverWallet NEXT (Best) Aligned Insurance
Building coverage limit (minimum) $50,000 $110,000 $15,000,000
Contents coverage limit (minimum) $50,000 $15,000 $15,000,000
Outdoor signs Excluded $2,500 Included
Accounts receivable  Excluded Excluded Included
Money and securities Excluded $2,500 Included
Lock and keys  Excluded $2,500 Included
Business interruption floater Excluded Included Excluded
Equipment breakdown floater Excluded Included Excluded
Inland marine insurance floater Excluded Excluded Excluded
Employee dishonesty floater Excluded $500 $10,000


Commercial property insurance is a coverage for the tangible assets of your waste hauling business. The table above compares the features of commercial property insurance for waste hauling.

This type of carting business insurance protects your business property against the following perils:

  • Sinkhole collapse

  • Fire

  • Theft

  • Vandalism

  • Sprinkler leakage

  • Burst pipes

  • Volcanic action

  • Civil commotion

  • Riot

  • Winds

  • Hail

  • Snow

  • Aircraft

  • Impact

  • Vehicles 

The primary function of commercial property insurance is to cover your commercial building. It will:

  • Reimburse losses if your commercial building’s structures such as flooring, roofing, siding, and signage sustain damage 

  • Reimburse losses if your commercial building is destroyed 

The second function of commercial property insurance is to recover financial losses if the valuables inside your waste hauling company’s office get damaged or destroyed because of the perils above. 

Waste Haulers Business Interruption Insurance

Business interruption insurance provides help when an economic crisis, relocation, or renovation results in the temporary closure of your waste hauling business. 

In practice, this insurance covers taxes, bills, loans, mortgages, payroll, and other operational costs while your business isn’t generating income. 

Remember that business interruption insurance doesn’t cover government-mandated closures, wars, and pandemics. 


Garbage Truck Insurance

Your waste hauling business surely uses front loader garbage trucks, side loader garbage trucks, rear loader garbage trucks, or roll-off trucks. 

It’s unthinkable for your business to operate without these vehicles. If you’re looking for garbage truck insurance, then what you’ll need is a commercial auto insurance policy. 

Commercial auto insurance offers several types of coverage which takes care of undesirable outcomes associated with using vehicles for commercial purposes. Such coverages are:

  • Auto liability coverage-Auto liability coverage pays the medical costs of third parties injured by your waste disposal business’s garbage truck. It will also provide refunds if properties were damaged

  • Physical damage coverage-Physical damage coverage helps you repair or replace the parts of your business’s garbage truck without incurring losses. Carriers underwrite this as a collision or comprehensive policy. Collision physical damage coverage takes care of parts repair or replacement if the garbage truck sustained damage by colliding with a vehicle or object. Comprehensive physical damage coverage, on the other hand, will cover expenses if fire, theft, vandalism, lightning, and other covered perils damaged the garbage truck

  • Rental reimbursement coverage-Rental reimbursement coverage refunds the money that you spend to hire or rent a garbage truck because the one that you own is being fixed 

  • Underinsured/uninsured motorist coverage-Uninsured/underinsured motorist coverage kicks in when your garbage truck gets involved in an accident caused by a driver with no insurance or doesn’t have enough insurance. It will cover the medical costs he’s obligated to cover. 

  • Medical payments coverage-Medical payments coverage can be included in commercial auto insurance if you’re in a fault state. This covers medical treatment and ambulance fees if your garbage truck caused an accident or got involved in one, and its driver and passenger sustained injuries

  • Personal injury protection-Commercial auto insurance can have personal injury protection coverage if you’re in a “no-fault” state. It pays for rehabilitation, lost wages, and medical treatment expenses of the driver and passenger if your garbage truck got involved or caused an accident 

Auto liability coverage doesn’t provide protection if it’s proven that your garbage truck caused an accident for reasons that are criminal in nature. 

Physical damage coverage in commercial auto insurance doesn’t cover damage because of a rollover. Additionally, you can’t use it to cover the repair or replacement of your garbage truck’s aftermarket parts. 

What To Do If You Need To Insure Two or More Garbage Trucks?

If your waste disposal business has two or more garbage trucks as well as other heavy equipment such as dump trucks, snow plows, and tractors that need to be insured, find an insurance company that sells fleet insurance. 

Fleet insurance is just a specialized form of commercial auto insurance which covers 2-15 commercial vehicles under one insurance contract. 

The commercial auto insurance coverages we discussed above are still offered in a fleet insurance policy. 


Do You Need MCS90 Endorsement?

You must introduce an MCS90 endorsement to commercial auto insurance if your waste disposal business collects and hauls:

  • Toxic wastes

  • Flammable wastes

  • Infectious wastes

  • Radioactive wastes

  • Corrosive wastes

So what is an MCS90 endorsement anyway? An MCS90 endorsement serves as proof that you have the minimum liability coverage mandated by the Federal Motor Carrier Act of 1980. 

It also compels an insurance company to provide coverage to perils excluded in your garbage truck’s auto liability coverage. 

Note that MCS90 isn’t an insurance policy. It’s just a guarantee that your waste disposal business can cover costs if its garbage truck injures people or spills pollutants. An insurance company that provides coverage through MCS90 endorsement can compel your business to reimburse what they spent. 


Workers Compensation Insurance For Waste Haulers

Employees working for your waste disposal business are highly exposed to sharp objects and infectious materials. And so, it’s easy for them to sustain work-related injuries or diseases. 

Workers’ compensation insurance allows you to easily cover unexpected costs if an employee asks for financial help upon sustaining a work-related injury or disease. Specific expenses covered are:

  • Medical expenses-Workers compensation insurance helps your waste disposal business pay for an employee’s ambulance fees, emergency room fees, and other medical expenses

  • Hospitalization-You can use workers’ compensation insurance to cover bills if your waste disposal business’s employee is admitted to the hospital to receive intensive medical attention

  • Medication-Workers compensation insurance provides the funds an employee can use to buy any medicines prescribed by the attending physician 

  • Rehabilitation-If your employee needs rehabilitative care, workers’ compensation insurance will pay for therapist fees, rehabilitation equipment, and other associated expenses 

  • Lost wages-Workers compensation insurance covers lost wages if your waste disposal business’s employee can’t work due to a work-related injury or disease. Coverage for lost wages is a weekly allowance equal to two-thirds or 67% of the average weekly wage

  • Death benefits-Death benefits are provided by workers’ compensation insurance if your employee dies due to a work-related injury or disease. It will pay funeral expenses and provide an allowance to dependents

Workers’ compensation insurance is a legal requirement unless your waste disposal business is operating in Texas. 

Failure to get workers’ compensation insurance will result in stiff fines and penalties. That’s why it’s better to purchase the policy even though it’s expensive. 


Roll Off Dumpster Insurance

Your garbage and waste collection business utilizes several roll off dumpsters. They might get damaged during use. And this is why insurance companies sell some policies that can be used as a roll off dumpster insurance. 

The first of these policies is tools and equipment insurance. Tools and equipment insurance is an add-on to general liability or commercial property insurance that grants a $10,000-$25,000 reimbursement in case your roll off dumpster gets damaged or destroyed by theft, vandalism, and other covered perils.

Another one is inland marine insurance. This can be used as a roll off dumpster business insurance if the roll off dumpsters you own have to be moved through a tractor truck. If your roll off dumpsters get damaged during the trip, then inland marine insurance will reimburse your losses. 


What Insurance Policies Can Be Used if I Rent My Dumpsters?

You can use a general liability policy as a dumpster rental insurance. This will help take care of costs if the renter sustains bodily injuries or property damage because your dumpster is defective. Coverage also applies if it’s their fault but try to put the blame on you. 

Pollution liability coverage is also helpful as a dumpster insurance for rentals. In case of spillage of the debris or other wastes loaded, this will cover the costs for environmental restitution if the renter can’t take responsibility. 

Finally, equipment breakdown insurance can also help. This type of dumpster rental business insurance will cover repair or replacement expenses if the dumpster you own gets damaged due to the error of the renter. 

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Carting Insurance Cost

Cost per Month Cost per Year Deductible
General liability insurance $47 $564 $0-$500
Professional liability insurance $72 $864 $500-$1,000
Workers compensation insurance $89 $1,068 $2,000-$5,000
Commercial property insurance $50 $600 $1,000-$2,000
Commercial auto insurance $95 $1,140 $500-$1,000


The average carting insurance cost is $47 per month or $564 per year for a $1 million general liability insurance. This assumes that your waste hauling and garbage collection company has 5 employees and generates $500,000-$750,000 per year. Factors that affect the cost of premiums are:

  • Business history

  • Claims history

  • Revenues

  • Number of employees

  • Type of garbage and waste collection provided

You might want to get a further idea about the cost of premiums by taking a look at this table that shows the rates of the best carting insurance companies for waste haulers and garbage collectors:

Cost per Month Cost per Year Best for
NEXT $33 $396 Best overall; Fastest general liability insurance for waste and garbage collection businesses
CoverWallet $35 $420 Carting insurance quotes comparison online
Tivly $36 $432 Comparing carting insurance quotes over the phone
Aligned Insurance $45 $540 Carting insurance policies with high limits

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Best Carting Insurance Companies

Making a decision is easier if you have prior information about the choices. That said, we’ve reviewed the best carting insurance companies.

Proceed below to know their pros, cons, and rate of a $1 million general liability insurance. Some of the reviews come with interlinks that take you to a company information page where you can get quotes or read first-hand comments about the companies we reviewed. 


NEXT Carting Insurance

Pros

  • Best overall

  • Get an online proof of insurance and send as a text message, email, or social media post

  • Fastest general liability insurance for waste and garbage collectors

  • Great customer service and reputation

  • Issues an online proof of insurance instantly

  • Outstanding value for money

  • Bundle two or more insurance policies and get a 10% discount

Cons

  • Couldn’t find any

NEXT grants coverage for waste and garbage collection businesses that only deal with non-hazardous materials. It offers three options-basic, premiere, and deluxe.

You get general liability insurance bundled with professional liability insurance from NEXT’s basic plan. This is the cheapest and doesn’t provide a lot of coverage. 

The most comprehensive option is deluxe. Deluxe gives you general liability insurance, professional liability insurance, tools and equipment insurance, workers compensation insurance, and commercial property insurance. Commercial property insurance can be added as an optional policy. 

Best for: Best overall; Fastest general liability insurance for waste and garbage collection businesses

Average cost: $33 per month

Our rating: 10/10


CoverWallet Carting Insurance

Pros

  • Stable rates

  • Compare carting insurance quotes online

  • Cancel your policy anytime 

  • Easy online policy management

Cons

  • Not an insurance company but an insurance broker 

CoverWallet offers coverage for waste and garbage collection companies doing hazardous and non-hazardous wastes. Policies offered are general liability insurance, workers compensation insurance, commercial property insurance, and professional liability insurance.

CoverWallet is an insurance broker. This means that the policies you purchase from this company are underwritten by its partners. Nonetheless, CoverWallet issues certificates of insurance and allows you to manage your coverage online. 

To get covered, use CoverWallet’s online quotation tool to compare quotes and buy insurance online. 

Best for: Carting insurance quotes comparison online

Average cost: $35 per month

Our rating: 10/10


Tivly Carting Insurance

Pros

  • Responsive customer service

  • A partner of many reputable insurance companies 

  • Call and compare quotes over the phone

Cons

  • You need to call to get a quote 

Tivly (formerly CommercialInsurance.NET) can grant coverage if your waste and garbage disposal company is involved in the intrastate and interstate trucking of hazardous and non-hazardous wastes. Policies you can get are general liability, commercial property, and other business insurance policies. Call Tivly now and compare carting insurance quotes over the phone.

Bes for: Comparing carting insurance quotes over the phone

Average cost: $36

Our rating: 10/10


Aligned Insurance Carting Insurance

Pros

  • High coverage limits

  • Can grant coverage if your company has operations in Canada

  • Employee benefits insurance offered as part of general liability insurance

Cons

  • Online quotation platform isn’t very intuitive

Aligned Insurance is a good fit if your carting company is big. Though expensive, this company is worth it as its coverage limits exceed $2 million. For example, your general liability insurance from Aligned Insurance offers $5 million coverage and additionally offers employer’s liability and employee benefits liability coverage. 

Best for: Carting insurance policies with high limits

Average cost: $45 per month

Our rating: 9/10

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