Insurance Essentials Every Septic, Sewer and Portable Restroom Contractor Needs to Succeed

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SPOTLIGHT ASSOCIATION NEWS Insurance Essentials

ASSOCIATION INSIDEREvery Septic, Sewer, and Portable Restroom Contractor INDEX Needs to Succeed

Septic and sewer contractors work hard to ensure every home and business owner maintains safe and healthy operations. Properly maintained and cleaned septic systems ensure homeowners don't experience backups that could push raw sewage back into their homes. Sewer contractors keep the waste treatment systems in our cities and town working without a hitch. Portable restroom providers play an essential role in maintaining the health and safety of construction workers while they are on the job site. Each of these jobs comes with various risks that could bankrupt the business owner if they do not have the proper insurance coverage. Some owners believe a general liability policy will provide adequate coverage. This article will review special insurance options for sewer, septic, and portable restroom contractors. This article is not meant to provide legal or professional advice and all readers should refer to their insurance carriers and legal counsel for specific recommendations.

LIABILITY RISKS FOR SEWER, SEPTIC, AND PORTABLE RESTROOM CONTRACTORS

Specialty septic and sewer contractors are called in to install, repair or replace private septic systems or municipal sewer systems. Their role is to dig up and remove underground tanks, pipes, and other related waste disposal equipment. Underground work often exposes broken lines and leaky tanks. If waste is spilled during the job, the contractor could face liability exposure. If waste is spilled during transportation, the contractor may also be held liable. This work is often dangerous, and workers may be injured. All of these risks expose the contractor to lawsuits and civil or even criminal fines. Without proper liability insurance, contractors will pay fines and legal fees out of their own pockets. All contracts require a minimum amount of general business liability and worker’s compensation insurance. These umbrella policies may not provide adequate coverage, potentially leaving the business responsible for millions of dollars in costs.

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SEVERE-DUTY OPEN TOP CONTAINER

Single and Two Container Roll-o Trailers Roll-o Hoists Vacuum Trailers Liquid Tight Containers Trash/Solid Waste Containers Vacuum Boxes

VACUUM TRAILER

TYPES OF INSURANCE PRODUCT WATCH

General Business Insurance All contractors carry general business liability insurance and need to provide evidence of insurance to bid and work on construction projects. This insurance covers general business risks such as contracts, errors, and omissions, property, and non-employee personal injury IN THE NEWS claims. Every insurance policy includes a deductible amount the insured pays in case of a claim. The amount varies depending on the policy, and the higher the deductible, the lower the monthly premium costs. This insurance provides the bare minimum coverage and specialty contractors will need additional insurance to cover risks specific to their industry. SPOTLIGHT contractor may be named in lawsuits from government or private environmental parties. Defending against Worker’s Compensation Insurance these lawsuits is costly, and if contractors do not have Employment laws require contractors to provide specific coverage, they may find themselves responsible worker’s compensation coverage. This insurance for legal costs, fines, and other expenses. Portable pays for medical costs when employees are injured restroom contractors may spill waste during clean-out on the job. The premiums are based on the type operations, leaving them at risk of liability. Pollution of job the employee does and the risks involved in and pollution transportation policies provide additional the occupation. Office workers are less at risk than coverage in case of a rare spill or waste leakage event. employees working in confined spaces or on excavation projects. CONCLUSION Automotive and Truck Insurance Specialty contractors have unique job-related risks Automobiles, trucks, and construction equipment are and require specialized insurance to protect their vital assets to septic, sewer, and portable restroom businesses from these risks. Sewer, septic, and portable contractors and need to be protected by auto or vehicle restroom contractors need to consider the risks in their insurance. This coverage includes accident damage industries and protect their financial and business caused by other vehicles, comprehensive damage when operations with adequate insurance. Contractors with other vehicles are not involved, and medical payments. only standard umbrella policies may leave themselves Pollution Liability exposed to substantial costs, legal fees, and fines. Septic and sewer contractors deal with hazardous and toxic waste and other chemicals that damage the environment if spilled. When doing remediation or clean-up work, septic contractors often remove or replace inground tanks. If those tanks leak, the

ASSOCIATION NEWS

...the contractor may be named in lawsuits from government or private environmental parties. Defending against these lawsuits is costly, and ASSOCIATION INSIDER if contractors do not have specific coverage, they may find themselves responsible for legal costs...

INDEX

Sources https://www.amwins.com/resources-insights/article/ commercial-umbrella-standalone-or-follow-form https://www.iamagazine.com/magazine/issues/2021/ february/pollution-liability-cleaning-up-toxic-practices