What Type Of Insurance Do I Need For A Cleaning Business?
As a cleaning business owner, you might find yourself wondering what type of insurance coverage you need. Is there something tailored to your specific business? 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.
Cleaning services or businesses (often referred to as a janitorial business) can be demanding and full of risks. As the business owner, you want to make sure you are covered with the right policy that will meet your company needs.
So what falls into the category of a cleaning business? Who needs cleaning insurance?
- Dry Cleaning
- Carpet Cleaning Service
- Maid Services
- Laundry Services
- Window cleaning
- House Cleaning
- Office Cleaning
- Commercial Cleaning
All of these 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 Does Your Cleaning Service Need?
These are some of the coverages we recommend to protect your business:
General liability, 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 property, if bodily injury occurs, or if you’re sued.
Example: You’re cleaning a customer’s house. While you are dusting, you break a valuable vase. Your general liability policy will cover the accident/damage to the customer’s property. If your cleaning business didn’t have a general liability policy, this would have been an expensive out-of-pocket cost.
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.
Example: A thief breaks into your office and steals important cleaning equipment. A property insurance policy will cover this incident.
Business Owner’s Policy
A business owner’s policy is a great option to consider since it bundles general liability and property insurance. It’s also a great way to save money.
Workers’ compensation, also known as workers’ comp, is another valuable option for your cleaning business. Most states require workers’ comp insurance (Texas is the exclusion). This policy 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.
Example: 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.
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 the tools and equipment inside, damage to someone else’s property, and liability for injury to other vehicles and/or people injured.
Example: You’re driving to an office to clean their carpets and accidently run a stop-sign. Another vehicle smashes into the backside of your van. Your equipment is damaged, 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.
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.
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 owner’s 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.
How Much Does Cleaning Business Insurance Cost?
Costs vary depending on what you want included in your policy (property, cargo van, equipment, etc.). The type of cleaning business you operate also impacts the coverages you’ll need. An exterior window cleaning company will face more risk than a maid service. You must also take deductible costs into consideration and choose an option you can afford. One of our qualified agents can walk you through the different options and help choose the right policy for you.
Get A Free Quote In Minutes
At Commercialinsurance.Net, we understand the needs of a small business. We are dedicated to assisting you in finding the right cleaners insurance, with the right insurance company, at a price you can afford. We have many competitive options to get you an insurance quote fast. Fill out the form above and one of our agents will contact you. Or, you can contact us by phone at 1-877-907-5267.