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:
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.
