As a small business owner, you might find yourself wondering what type of insurance coverage you need. Is there something tailored to your specific business? What insurance company should you choose? What policies do you need as part of a cleaning insurance package? Our goal is to help make this process quick and simple. We do our best to answer any questions you may have in this article.
Who Needs Cleaning Business Insurance?
A cleaning service business (often referred to as a janitorial business) can be demanding and full of risks. As a small business owner, you want to make sure you are covered with the right policy that will meet the needs of your company.
So who needs cleaning business insurance?
Anyone who falls into the cleaning professionals category needs this type of insurance. All of these cleaning businesses come with different risks that must be taken into consideration. However, each of them can benefit from the following coverages.
What Type Of Coverage Do Cleaning Services Need?
These are some of the insurance policies we recommend for house cleaning services:
General Liability Insurance: General Liability Insurance, also known as ‘slip and fall insurance’ or ‘commercial general liability’ is typically the first type of coverage we suggest for any business. General liability insurance will cover your business in instances of damage to the customer’s personal property, if third party bodily injury occurs, or if you’re sued.
Professional Liability Insurance: If you provide business advice to a customer and it results in property damage, they can claim that you gave them faulty information and sue you. Professional liability can help cover court costs.
Commercial Property Insurance: Property insurance is another important coverage to consider. This type of policy will protect your building, furniture, and business equipment if there is damage, theft, or vandalism. In certain situations, you will be covered from property damage from inclement weather.
Business Owners Policy: A business owners policy (BOP) bundles general liability insurance, commercial property insurance, and often includes business interruption insurance. Packaging the policies together often means a reduced rate.
Workers’ Compensation Insurance: Workers’ compensation insurance, also known as workers’ comp, is another valuable insurance for your business. Most states require workers’ comp insurance (Texas is the exclusion). Workers' compensation will cover your employees if they are injured on the job. It helps pay medical bills and lost wages. In the event they try to sue your business legal fees will be covered.
Commercial Auto Insurance: If you own a commercial van to transport cleaning supplies or equipment, it needs to be covered with commercial auto insurance. In case of an accident it covers bodily injury, damage to someone else’s property, and liability for injury to other vehicles and/or people injured.
Inland Marine Insurance: Commercial auto insurance doesn't typically cover damage to the tools and equipment inside unless they are permanently affixed to the vehicle. But Inland marine insurance does cover tools and equipment while in transit or stored on a job site.
Janitorial Bond: A Janitorial bond is a type of surety bond. It covers damages if one of your employees is accused of theft of personal property or money. It also covers you against unsatisfactory work. Some homeowners require you to hold this surety bond to give them peace of mind when they allow your service in their home.
WHY Business Cleaners Need Insurance
Here are some examples to help you understand why insurance for cleaning professionals is necessary:
Example #1: You’re cleaning a customer’s house. While you are dusting, you break a valuable vase. Your general liability insurance policy will cover the accident/damage to the customer’s property. If the client had slipped and fallen on a wet floor, the third party bodily injury would also be covered by this insurance policy. If your business didn’t have a general liability policy, this would have been an expensive out-of-pocket cost.
Example #2: A thief breaks into your office and steals important cleaning equipment. A property insurance policy will cover this incident.
Example #3: Roger is employed with your cleaning business. In the process of cleaning a customer’s property, he falls off a ladder and injures his back. He goes to urgent care and later completes physical therapy. Your workers’ comp policy will cover your employee by assisting with the associated medical costs and lost wages.
Example #4: You’re driving to an office to clean their carpets and accidentally run a stop sign. Another vehicle smashes into the backside of your van. There is a dent in your car, and the other driver's vehicle is damaged. Your commercial auto should cover all of those costs, despite you being at fault.
Example #5: A client asks for your professional advice on how to clean an antique. The client calls you frantically, claiming that the advice you gave resulted in severe damage to the antique. While you didn't clean it, she claims that the damage is your fault and you are liable for the replacement cost. Professional liability insurance can provide coverage for the cost of a legal battle.
Which Insurance Coverage is Right For My Cleaning Business?
After learning a little more about the different types of insurance for cleaning businesses it will be easier to determine the best coverage for your business. We understand that you may operate on a tight budget and that it's hard to consider the expense that comes with insurance. However, it’s smart to purchase the most coverage you can afford because accidents do happen—and you want to be covered when they do.
We typically recommend general liability insurance as a good starting point. If you have employees, we suggest getting a workers’ comp policy—and it is required in most states. If you want general liability and property insurance, we would then suggest a business owners policy. If you own a cargo van, consider adding commercial auto insurance. If you or your employees work in someone’s home, consider securing a janitorial bond. We recommend a conversation with an agent to help assess your insurance needs.
How Much Does Cleaning Business Insurance Cost?
The cost of cleaning business insurance varies depending on what you want included in your policy (property, cargo van, equipment, etc.). An insurance company can offer general liability for as low as $45 a month or $500–$600 annually. What else is taking into consideration by insurance companies?
- The type of cleaning company you operate
- Policy limits and deductible costs
- Pasty history of claims
An exterior window cleaning company will face more risk than a maid service. One of our qualified agents can walk you through the different coverage options and help choose the right liability coverage to protect your business—based on your unique business needs.
Get A Free Quote for Your Cleaning Business
Finding the right cleaning insurance doesn't need to be stressful! Our goal is to help cleaning businesses find the right insurance company at a price you can afford to pay. To get free quotes on cleaning insurance, complete the form at the top of the page or give us a call at 1-877-907-5267. One of our agents will gladly help you!
Related Articles: Business Owners Policy, General Liability Insurance