Get a Pest Control Insurance Quote

What is pest controller insurance?

When it comes to defending property from unwanted guests, pest controllers, also known as exterminators, are the ones to call. As a pest controller, having the right commercial insurance will protect your business.

Pest control insurance is an umbrella term for a group of policies designed to protect exterminators from specified risks while they are on the job. If an accident, like damaging a client's property occurs, pest controller insurance will help pay for the replacement or repair cost. It covers general liability for accidents, damage to tools and equipment, and workers' compensation if you have employees.

Who needs pest control insurance?

Those who need pest controller insurance include:

• Pest control contractors: These are exterminators who work as sole proprietors or freelancers.
• Pest control companies: These businesses offer a range of pest management services to homes, offices and industrial spaces.
• Exterminators: These pros focus on getting rid of specific pests like rodents, insects or termites.
• Wildlife control specialists: They handle the tricky task of managing and removing wildlife that might threaten a property and work with larger critters who pose more risk.
• Agricultural pest control services: These exterminators specialize in pest removal in agricultural settings, protecting crops and livestock.

What does pest control insurance cover?

Pest control insurance typically covers these three main areas:

Commercial general liability insurance: Commonly referred to as CGL, this coverage is mandatory in some Canadian provinces, such as Ontario, for every pest control contractor. It provides financial protection against lawsuits related to third-party property damage or bodily injury. For example, if a pest control service accidentally results in damage to a client's property, CGL can help cover your legal fees and repair costs.

Important note: When selecting your coverage limit, you can opt to apply the coverage to all employees collectively or per individual. The latter option will generally result in higher premiums.

Professional liability insurance: Also known as errors and omissions (E&O) insurance, this covers claims related to professional errors or negligence. For instance, if a pest controller uses the wrong type of chemicals and it proves hazardous to property or people, they may face a claim.

Tools and equipment insurance: Often referred to as pest control equipment insurance, this coverage offers extra protection for the tools and equipment used by pest controllers. This policy covers the repair or replacement costs if your tools or equipment are lost, stolen or damaged. Generally, any items valued under $1,500 will be considered tools, while those over that amount are categorized as equipment.

Pollution liability insurance: As a pest controller, you are one of the few professionals that will require pollution liability insurance. You’re working with some tough chemicals and potentially hazardous materials that can affect the environment. Having this insurance means you’re covered for any damages to a client’s property or health issues that might arise from the toxic substances you use.

What insurance add-ons are recommended for pest control businesses?

These types of coverages won't be relevant to all pest controllers, but many businesses in the industry will add the following coverages to their insurance policy:

Commercial property insurance: This will protect your business in case of damage to your physical assets. For pest controllers, this could be the office or storage facility where you store your tools, equipment and supplies. For example, if your storage facility suffers water damage affecting your equipment, commercial property insurance would cover the repair or replacement costs.

Commercial auto insurance: As a pest controller, commercial auto insurance protects your vehicles and assets. This insurance will cover the vehicles you and your employees use for work in case of accidents, theft or damage. For instance, if one of your service vans is involved in an accident while transporting cleaning supplies, commercial auto insurance can help cover repair costs and liability claims. Any pest controller who uses a vehicle for business purposes will need commercial auto insurance.

Business interruption insurance: This insurance protects your pest control business from lost income due to unexpected disruptions, such as natural disasters, fires or other incidents that can halt operations. It can also help cover fixed expenses, like employee salaries and rent, ensuring your business can recover and continue running after the disruption.

How much does pest control insurance cost in Canada?

The cost of pest control insurance in Canada can vary based on several factors, including the size of your business, the scope of services, your claims history and the type of coverage you choose. Here are some general guidelines:

• General liability insurance: Typically starts at around $450 per year for a $2 million coverage limit.
• Comprehensive insurance packages: Can start at approximately $575 per year.

Because most pest control businesses also include commercial auto insurance and pollution liability, the cost of an insurance policy will typically exceed $1,000. To see how much a pest control insurance policy will run your company, get a free quote.

What factors determine pest control insurance rates?

The price of pest control insurance in Canada depends on several different factors:

Business equipment and property: The value and type of equipment you use can affect your insurance costs. More expensive or specialized equipment will increase the premiums.

Specialization: In the pest control industry, certain specializations might lead to higher insurance premiums due to increased risks or liabilities when eliminating infestations. For example, if you specialize in termite extraction, you will face higher premiums because termites can cause structural damage, which has a higher price tag than most other associated risks.

Revenue: Higher business revenue can increase insurance premiums because it means there is more that the insurance provider needs to protect.

Deductible: The amount you choose to pay out-of-pocket before insurance kicks in will influence your premium. Higher deductibles will result in lower premiums.

Location: The geographical location of your business can change costs. For example, areas with higher pest populations or more severe weather conditions might have higher premiums.

Years in operation: Established businesses with a good track record often qualify for lower premiums compared to newer ones.

Claims History: Consistently making large claims will drive up your insurance costs in the long run.

How does pest controller insurance work?

Pest control insurance offers financial protection against unforeseen incidents. When you submit a claim, your insurer evaluates the situation and if it’s covered, compensates you for the related expenses up to your policy’s limits. This helps you manage losses and keep your business running smoothly.

How to get the cheapest pest controller insurance quote?

To get the cheapest pest control insurance quote in Canada, consider these steps:

Compare multiple quotes: Check with multiple insurance providers to compare the market. This helps you find the best rate for your needs.

Bundle policies: If you need multiple types of insurance (e.g., general liability, commercial auto, etc.), bundling them with the same provider will often result in discounts.

Increase your deductible: Opting for a higher deductible can lower your premium. Just ensure you can afford the deductible in case of a claim.

Maintain a good claims history: Insurers often offer lower rates to businesses with fewer claims. Implement safety measures to reduce the likelihood of accidents and claims.

Choose the right coverage: Only pay for the coverage you need. For example, if you don’t use vehicles for your business, you can skip commercial auto insurance.

Ask about discounts: Some insurers offer discounts for things like paying annually instead of monthly, or for having a good safety record. When binding your pest control insurance policy, check to see whether you qualify for any savings.