Is Owning a Junk Removal Business Profitable?
- Nate Jones, CPCU, ARM, CLCS, AU
- 7 hours ago
- 2 min read
Starting a junk removal business can be a smart move for entrepreneurs looking to enter a growing industry with relatively low startup costs and high demand. But is it truly profitable?
In this blog, we’ll break down the key factors that influence profitability, explore the costs and revenue potential, and explain why having the right junk removal business insurance is essential for long-term success.
The junk removal industry is booming thanks to:
Increased consumer demand for decluttering and downsizing
Real estate turnover and property management needs
Commercial construction and renovation projects
Environmental regulations requiring proper disposal
According to IBISWorld, the junk removal industry in the U.S. has seen steady growth, with revenues exceeding billions annually. This trend is expected to continue as sustainability and waste management become more important.
How Much Can You Make in Junk Removal?
Profitability depends on several factors:
Location: Urban areas tend to have higher demand and pricing.
Services Offered: Residential, commercial, construction debris, appliance removal, etc.
Pricing Strategy: Most companies charge based on volume (truck space used) or labor hours.
Operational Efficiency: Fuel costs, labor management, and disposal fees impact margins.
Typical junk removal businesses can earn between $50,000 to $150,000+ annually, depending on scale and market. Larger operations with multiple trucks and crews can exceed this range.
Startup Costs to Consider
Starting a junk removal business is relatively affordable. Common expenses include:
Truck or trailer purchase/rental
Dumping fees
Marketing and branding
Licensing and permits
Insurance coverage
You can start small with one truck and scale as demand grows.
Why Insurance Is Crucial for Junk Removal Businesses
Running a junk removal business involves risks—property damage, employee injuries, vehicle accidents, and liability claims. That’s why working with a specialized insurance provider like Wexford Insurance is essential.
We help junk removal businesses find tailored coverage that protects their operations and assets. Visit our junk removal insurance page to learn more.
Essential Insurance Coverages for Junk Removal Businesses
General Liability Insurance – Covers third-party injuries and property damage.
Commercial Auto Insurance – Protects your trucks and drivers.
Workers’ Compensation Insurance – Required if you have employees.
Commercial Property Insurance – Protects your office, storage yard, or warehouse from fire, theft, and weather damage.
Inland Marine Insurance – Protects tools and equipment in transit.
Conclusion: Is It Profitable?
Yes—owning a junk removal business can be highly profitable if you manage costs, market effectively, and protect your business with the right insurance. With low barriers to entry and growing demand, it’s a great opportunity for entrepreneurs ready to get their hands dirty and build a scalable service business.
