Insurance a pest control company carries

Start with the licence requirement

Most pest control business licences come with a proof-of-insurance requirement. The minimums, the form and the cancellation-notice rules vary by state. Our state start pages for Texas, Washington, Florida, California and South Carolina list each state’s sourced minimums, so check yours there first.

Some states let you post a bond instead. Washington, for example, accepts either a surety bond or a liability insurance policy as evidence of financial responsibility for a commercial pesticide applicator licence, and only from insurers authorized in the state or placed as surplus lines.

The gaps a standard policy can leave

Care, custody or control. Texas and Alabama both require the policy to cover damage to persons or property under your care, custody or control; Texas says the policy’s care, custody and control exclusion must be deleted. That is exactly the house or building you are treating. Ask your agent to confirm in writing that your policy covers it.

Pesticide claims. Purdue Extension, writing about spray drones, notes that general liability coverage typically excludes liability from the contents of the spray tank, and that chemical liability is sold as its own coverage. Ask how your policy treats pesticide drift, contamination and pollution, and get the answer on paper.

WDO inspections and errors and omissions

A wood-destroying organism report is a professional opinion that buyers and lenders rely on. The SBA describes professional liability insurance as protection against losses from errors and negligence.

Some states require it. Alabama requires WDO permit holders to carry at least $100,000 in errors and omissions coverage on the official Alabama Wood Infestation Inspection Report, plus coverage for damage caused by wood-destroying organisms. If you write WDO reports anywhere, price E&O even where it is optional.

Vehicles, employees and the rest

Commercial auto covers your trucks. Federal minimum financial responsibility rules for hazmat carriers in 49 CFR Part 387 mostly apply to vehicles rated 10,001 pounds or more. For example, a truck at that weight carrying listed hazardous materials across state lines needs at least $1,000,000 in public liability coverage. Lighter service trucks fall outside those federal minimums, but your state’s auto insurance rules still apply.

Workers’ comp covers injured employees; the rules come from your state, so ask your state workers’ comp agency what applies from the first hire. The SBA lists general liability, product liability, professional liability, commercial property and a bundled business owner’s policy among the common small-business coverages.

This is general information, not legal advice. Confirm required coverage with your state pesticide agency and have a licensed agent and, for contract questions, an attorney review the policy wording.