As Rex sits in a corner booth at a local breakfast spot off South Lamar, the morning sun just starts hitting the windows. He is taking a quick break before his pest control crew starts their morning routes across the greater Austin metro area.
He is scrolling the news feed on his phone and a bold headline catches his eye. He clicks through to the website and the contents of the article stops him mid-sip.
The story tells of a local company that just went under because an uninsured driver totaled their two main trucks. Costs associated with the accident and replacing the trucks due to vehicle damage caused the company to file for bankruptcy. The small business simply could not survive that kind of financial hit.
Rex feels a sudden chill as he thinks about his own specialized equipment and sprayer rigs attached to the back of his business vehicles. They are probably merging onto Interstate 35 right now, dodging morning traffic collisions.
He has spent years building his reputation in the Austin area. And had always assumed that having an insurance policy meant he was safe. Now, he wonders if his fleet of commercial vehicles is actually protected by the right insurance policy.
If you are a Pest Control Services business owner, you know exactly what Rex is feeling. Your trucks are the lifeblood of your operation. They are business units used for all kinds of purposes. Most importantly, they haul expensive sprayer rigs all over town so that your technicians can provide professional services that people need.
These vehicles are the primary way your business operations generate revenue.
But let's think about life for a moment.
Texas roads are dangerous. Between auto fatalities and rising auto insurance claims, the risk is constant.
In addition, statistics show that about 20% of Texas drivers carry no auto insurance at all. And while others do carry insurance, it is only for state minimum policy limits. These uninsured and underinsured drivers are a threat to your business assets and livelihood.
Most owners assume that if an accident isn't their fault, the other person’s auto liability will make it right. But in Texas, you are sharing the road with people who have zero coverage or at best, just the bare minimum.
Without a proper commercial auto insurance that includes uninsured/underinsured motorist coverage, you are gambling your business every time a truck leaves to work a route.
Many newer owners try to save on their insurance cost by keeping a work truck or trucks on their personal auto policy. Rex remembers his neighbor suggesting this when he first started in Round Rock. He thought it might be a clever way to manage costs for his newly formed pest control business.
However, he quickly learned that insuring work vehicles on a personal auto policy is a trap. Personal auto insurance carriers in Texas are strict about excluding physical damage and liability claims that happen if you're actively doing business operations with them.
If you or your tech has an accident while on the job and you don't have a commercial auto insurance policy, the carrier will likely deny the claim. When a vehicle is being used for business purposes, make sure you have a commercial auto insurance policy.
Rex received wise counsel back in the day and realized that his savings on a personal auto plan could lead to costly losses for his pest control business.
Texas law requires your pest control business to have General Liability Insurance coverage with a minimum limit of $500,000. But Rex wanted to know if he had similar requirements for his business auto insurance coverage.
Legal liability insurance requirements for commercial auto coverage in Texas are less stringent. State minimum auto liability limits in Texas are $30,000 for bodily injury liability and $25,000 for property damage liability that results from an at fault liability claim.
Let's be honest, that isn't going to protect your business if a legal claim is made from a major injury due to an auto accident involving your vehicles and drivers. Rex understood this.
It is highly recommended that your business auto insurance liability coverage matches your general liability coverage amount to make sure that your small business is not put in jeopardy over a bad Tuesday on the freeway. Accidents happen to business owners and employees and the medical expenses that can come from them have the ability to sink you.
While this coverage will increase your insurance cost now, it will keep you from paying a costly auto claim out of pocket later. Make sure to review your auto insurance coverage every year.
Another part to understanding your auto policy involves coverage needs that are not necessarily specific to a particular truck or vehicle.
When you’re looking at the options available on a business auto insurance policy, you will see collision damage coverage, comprehensive damage coverage, rental reimbursement, Personal Injury Protection and Hired and Non-Owned Auto. These are additional options that can further protect your business assets and small business as a whole.
Since comp, collision, and rental coverage are common on personal auto policies, they do not need a lot of explanation. But personal injury protection is less understood. It allows your driver to have immediate funds to cover out of pocket costs that can arise due to an accident. If the medical expenses are low enough, it can even help you avoid a claim against your worker's comp insurance.
You might consider specifically adding hired and non-owned auto coverage. This non-owned & hired auto liability protects your business if an employee uses their own car for business purposes. It also gives you coverage for a rental car while a rig is in a garage repair shop.
Rex learned that this is where consulting with an experienced commercial insurance agent is how to get the best advice.
While discussing his collision coverage for his commercial auto insurance policy with his agent, Rex realizes that his pest control business needs a full suite of liability insurance protection. That discussion led to understanding all of the ways an insurance company can help shift the cost of risk off his small business.
This shield of protection can include the following types of coverage:
Rex can sleep better at night now that he has not only a business auto insurance plan, but a comprehensive plan of protection for his business. He understands that the total cost of risk for his business is more than just his monthly insurance premiums.
Don't let a bad headline allow you to find out that you aren't covered. Use True Texas Pest Control Insurance to understand the insurance costs and the total cost of risk.
At Insurance for Texans, we use our risk assessment process to examine your current coverage, look for gaps and construct a plan that covers your growing pest control business.
Click the link below to get the right insurance coverage for your Texas pest control company.