The policies a junk removal business carries
Junk removal damage is usually walls, door frames and floors on the way out, plus the truck on the road. Heavy lifting makes workers' comp an early need once you hire.
| Policy | Average a month |
|---|---|
| General liability | $83 |
| Tools and equipment | $42 |
| Commercial auto | $270 |
| Workers' compensation | $160 |
| Surety or license bond | $9 |
Averages are what Insureon's customers among contractors as a group (it publishes no separate figures for junk removal) pay, from Insureon's cost page; most of its customers have fewer than five employees. Across all its small business customers, general liability runs $265 to $3,030 a year.
Claims junk removal companies plan for
- A couch gouges a stairwell wall on the way out
- A door frame is cracked moving an appliance
- A helper hurts his back lifting
- A loose load spills on the highway
Ask your agent, in these words:
- Would my policy pay if a couch gouges a stairwell wall on the way out?
- Would my policy pay if a door frame is cracked moving an appliance?
- Would my policy pay if a helper hurts his back lifting?
- Would my policy pay if a loose load spills on the highway?
Name the work you sell
A policy covers the work you describe on the application. From the junk removal services list, name each of these and ask whether any is excluded: 1/4 truck load; 1/2 truck load; full truck load; mattress or box spring; couch or sectional; refrigerator or freezer; tv or electronics; hot tub, cut up and hauled; piano; garage or basement cleanout; estate cleanout; shed demolition; deck demolition.
The truck is the biggest asset, so commercial auto matters most. On the tools list, the items to list on the policy are second truck or dump trailer; sledgehammer and demo tools; hot tub cutting kit; shop vacuum; tarps and contractor bags in bulk, and from the starter kit, box truck or dump trailer with high sides; hand truck and appliance dolly; furniture dolly; moving pads; ratchet straps and a cargo net.
State rules in the license
Most states do not license junk removal work as a trade of its own, so there is usually no state insurance minimum tied to a license. Cities and commercial customers can still set their own.
Workers' comp and bonds
The SBA says every business with employees must carry workers' compensation, unemployment and disability insurance. Insureon's average for contractors as a group is $160 a month, priced per $100 of payroll. A bond protects the state or the customer, not you; Insureon puts its yearly cost at a share of the bond amount:
| Bond amount | Estimated yearly cost |
|---|---|
| $5,000 | $25 to $500 |
| $10,000 | $50 to $1,000 |
| $50,000 | $250 to $5,000 |
Certificates of insurance
Property managers and commercial clients ask for a certificate before a cleanout. Keep a PDF on your phone so you can send it the day they ask.
Sources
- Insureon: Insurance cost for contractors as a group, checked October 9, 2026
- Insureon: General liability insurance cost, checked October 9, 2026
- Insureon: Workers' compensation insurance cost, checked October 9, 2026
- Insureon: Surety bond cost, checked October 9, 2026
- SBA: Get business insurance, checked October 9, 2026
Last checked October 9, 2026. This page is general information, not legal or tax advice. Rules change and differ by state and city, so confirm with the agency named before you act.