How Much Does It Cost to Start a Restoration Business?
- Nate Jones, CPCU, ARM, CLCS, AU
- 5 days ago
- 3 min read
Updated: 4 days ago
Starting a restoration business can be a rewarding venture—both financially and professionally. Whether you're interested in water damage restoration, mold remediation, or fire damage restoration, understanding the restoration business startup costs is essential before diving in.
At Wexford Insurance, we specialize in helping restoration contractors find tailored restoration business insurance. If you're planning to launch your own restoration company, this guide will walk you through the typical costs involved and how to protect your investment.
Typical Startup Costs for a Restoration Business
Here’s a breakdown of the major expenses you should expect when starting a restoration business:
1. Equipment and Supplies
Depending on your niche (water, mold, or fire restoration), you’ll need specialized equipment:
Water extraction machines: $2,000–$5,000
Dehumidifiers and air movers: $1,500–$4,000
Mold remediation gear: $1,000–$3,000
Protective gear and safety equipment: $500–$1,500
Cleaning chemicals and supplies: $500–$1,000
2. Licensing and Certifications
Most states require restoration contractors to hold specific licenses or certifications, especially for mold remediation and asbestos handling.
Business license: $50–$500
IICRC certification (highly recommended): $250–$1,000
3. Marketing and Branding
To attract clients, you’ll need a professional presence:
Website development: $500–$2,000
Logo and branding: $300–$1,000
Digital advertising and SEO: $500–$2,000/month
To help manage your restoration business more efficiently, consider using Contractor Back Office. We specialize in contractor support services like bids & estimates, website and social media management—giving you more time to focus on growing your business.
4. Insurance
Insurance is a critical part of your startup costs. Restoration work involves risks—property damage, liability claims, and employee injuries.
General liability insurance: $500–$2,000/year
Workers’ compensation: Varies by state and payroll
Equipment Insurance: $300–$1,000/year
Commercial auto insurance: (if you use vans/trucks): $1,000–$2,500/year
Commercial property insurance: $500–$2,000/year (covers your office, warehouse, or equipment storage location)
At Wexford Insurance, we offer customized insurance programs specifically for restoration contractors. We understand the unique risks of the industry and work with top carriers to get you the coverage you need.
Total Estimated Startup Cost
Depending on your scope and location, the cost to start a restoration business typically ranges from $10,000 to $50,000. Starting small with water damage restoration and scaling up to mold and fire services is a common path for new entrepreneurs.
Why Insurance Should Be Your First Investment
Before you take on your first job, make sure your business is protected. Restoration work often involves entering private property, handling hazardous materials, and working in unpredictable environments. Without proper insurance, a single incident could jeopardize your entire business.
Wexford Insurance is here to help. We specialize in restoration business insurance and can guide you through the process of getting the right coverage at the right price.
Ready to Start Your Restoration Business?
If you're serious about launching a water damage restoration business, mold remediation startup, or fire damage restoration company, reach out to Wexford Insurance today. We’ll help you protect your investment and grow with confidence.
