What is debris removal insurance?
Debris removal insurance is exactly what the name says on the tin. It’s insurance that covers the costs and expenses of removing debris if an insured piece of property has been destroyed or damaged by an insured loss.
What this means is that if you’re living in an insured condo building or a house and a fire breaks out or a tree crashes through your roof, you’re probably relying on debris removal insurance to pay for the cost of removing debris that’s been left behind.
Debris Removal Insurance Coverage: What Is It?
Debris removal insurance is a common extension included in many property policies which provides coverage for the expenses to remove debris of covered property damaged or destroyed by covered loss from insured premises.
The amount of coverage automatically included varies among insurers. Some policies include debris removal within the limit for building/contents, while others set a specific limit or percentage of the building/contents limits. The key is, regardless of the limit provided by the automatic extension/addition, that amount is typically included in the building/contents limit and does not typically increase the limit in place for the building/contents.
A catastrophic loss may use a significant portion or the entire direct damage limit, leaving an insufficient amount for debris removal expense. It is important to consider the cost of debris removal when establishing a direct damage limit at any one location.
What types of insurance do debris removal businesses need?
If you’re in the business of offering debris removal services, there are several types of insurance that you may benefit from discussing with your ALIGNED broker. These would include:
- Commercial General Liability: In this line of work, the condition of a worksite can be difficult to predict. If a subcontractor or an employee were to damage a neighbour’s property or if a third party were to be injured on the job, your business could be named in a lawsuit. Commercial general liability may be able to assist with legal fees and judgment costs in these types of situations.
- Commercial Auto Insurance: As a debris removal business, chances are that you’re frequently using company vehicles to travel. If you or a member of your staff were to get into an accident mid-trip, personal insurance policies may not be able to cover you. That’s why commercial auto insurance is another coverage option that you may want to bring up with your ALIGNED broker.
- Commercial Property Insurance: It’s not unusual for debris removal businesses to rely on industrial-strength supplies and specialized equipment to finish jobs. Commercial property insurance makes it possible for you to receive compensation if a covered loss ever damages your company’s property.
What To Consider When Determining How Much Debris Removal Coverage Is Needed
- Age of the building
- Proximity to other buildings (i.e., maneuverability of equipment)
- Type of structure (wood frame or steel frame; steel will be more expensive to cut, clear, and remove)
- Existence and type of hazardous materials
While there is no benchmark that can be used to estimate the pre-loss cost of debris removal, one suggestion is to request a cost estimate from a local demolition/debris removal contractor based on an assumption of a total loss. An increase in coverage sub-limit and overall location limit can be requested as deemed appropriate based on this estimate.
We offer all of the following related products:
Property Insurance- Including Business Interruption & Extra Expense
Machinery Breakdown/Boiler & Machinery Insurance
Course of Construction(COC)
Wrap-up Liability Insurance
Commercial General Liability / CGL Insurance
Pollution Liability Insurance
Are you ready to ensure you have the right about of debris removal insurance in your policy or are you a debris removal company looking for better business insurance? Contact ALIGNED or request a FREE debris removal insurance quote today!