How Much Does It Cost to Start a Junk Removal Business?
- Nate Jones, CPCU, ARM, CLCS, AU
- 4 hours ago
- 2 min read
Starting a junk removal business can be a profitable venture with relatively low barriers to entry. But before you hit the road with your first truck, it’s important to understand the startup costs involved. From equipment and permits to insurance and marketing, budgeting properly can set your business up for long-term success.
At Wexford Insurance, we specialize in helping junk removal businesses find the right insurance coverage to protect their operations. In this guide, we’ll break down the typical costs of launching a junk removal business and explain why insurance should be a key part of your startup budget.
Common Startup Costs for Junk Removal Businesses
Here’s a breakdown of the most common expenses:
1. Vehicle Purchase or Rental
Used truck or trailer: $10,000–$30,000
Rental option: $1,000–$2,500/month
Your vehicle is your most important asset, so choose one that fits your hauling needs and budget.
2. Equipment and Supplies
Dollies, gloves, safety gear, tarps, bins: $500–$2,000
Branding (uniforms, decals): $300–$1,000
3. Business Licensing and Permits
Local business license: $50–$500
Waste disposal permits (varies by state): $100–$1,000
4. Marketing and Advertising
Website setup: $500–$2,000
Google Ads, flyers, social media: $300–$1,500/month
To help manage your operations and free up time for marketing and client service, consider using Contractor Back Office. We specialize in helping contractors with website, business calls and social media management, so you can focus on hauling and growing.
5. Insurance Coverage
Essential to protect your business from liability, accidents, and property damage. See below for details.
Estimated Startup Costs by Business Size
Business Size | Estimated Startup Cost |
Small (1 truck) | $5,000–$15,000 |
Medium (2–3 trucks) | $15,000–$40,000 |
Large (fleet + staff) | $40,000+ |
These ranges vary based on location, equipment quality, and service scope.
5 Essential Insurance Coverages and Typical Costs
Protects against third-party injury or property damage.
Estimated cost: $500–$1,500/year
Covers your trucks and drivers in case of accidents.
Estimated cost: $1,200–$2,500/year per vehicle
Required if you hire employees; covers job-related injuries.
Estimated cost: $1,000–$3,000/year depending on payroll
Protects your office, storage space, or owned property.
Estimated cost: $500–$2,000/year
Covers loss or damage to gear used on the job.
Estimated cost: $250–$750/year
Conclusion
Starting a junk removal business doesn’t require a massive investment, but planning your budget carefully—including insurance—is key to avoiding costly setbacks. With the right tools, strategy, and protection, you can build a profitable and sustainable business. Let Wexford Insurance help you get started with coverage designed specifically for the junk removal industry. 👉 Contact Wexford Insurance today.
Frequently Asked Questions (FAQs)
1. What is the minimum amount needed to start a junk removal business?
2. Do I need insurance before I start hauling junk?
3. Can I start a junk removal business with just one truck?
