Without a doubt, commercial insurance for carpet cleaning companies is important. Your company handles customer property, uses chemicals and specialized equipment, and transports carpets or employees to and from customer sites. You need to protect your company from all of the risks those daily activities can carry. Keep reading to learn about the specific types of coverage you may need and why it's important to have coverage.
As a carpet cleaning professional, your goal is to maintain your customer's carpets so they are always fresh and clean. Professional carpet cleaning services typically outperform consumer alternatives and DIY options. You should expect the same superior attention and service you provide your clients from your insurance provider.
General Liability Coverage
A general liability policy safeguards your commercial carpet business against liability for accidents and property damage a third party may experience. Adequate liability insurance means that your business will be covered in the event a client files a lawsuit alleging your company is responsible for property damage or bodily harm.
Property Insurance Coverage
A strong property insurance policy protects your commercial carpet cleaning business assets. Your assets not only include your equipment, but they also include your building space and supplies. You can choose to insure these assets at either replacement cost or their current value. While replacement cost coverage may cost a little more, you know that you can replace lost or broken tools with new equipment.
Business Owners Policy
If you're looking to save money, talk to CommercialInsurance.NET to see if your business qualifies for a BOP (Business Owner's Policy). Typically, if you combine general liability insurance and property insurance onto one policy, you receive a discounted rate. With this type of policy, you will receive the same coverages as you would on the individual policies.
Umbrella coverage offers a cost-effective approach to maximizing your insurance coverages. If you were to extend the limits of each individual policy you can expect considerable increases in each premium. The alternative is to invest in an umbrella policy or excess liability insurance. Not only do you pay a smaller, single premium, but you typically receive more coverage.
A three-party insurance agreement between the client, your company, and the insurance company is a Surety Bond Agreement (sometimes called "contract bonds"). The insurance company agrees to compensate your client for any losses in the event you default on your contract and don't finish the job. However, you are not off the hook. You would then have to reimburse your insurance company the amount they paid out on the claim.
Commercial Auto Insurance
The National Highway Traffic Safety Administration (NHTSA) estimates that, "... traffic crashes cost business owners $128,178 per injury..." Can you afford that kind of out of pocket expense? Commercial auto insurance is well worth the investment.
Workers' Compensation Insurance
In most states, workers' compensation insurance is required for businesses with W2 employees. This coverage adds a layer of security and shields your business from medical expenses or lawsuits from on the job injuries.
While most of these risks are beyond your control, there are several hazards your employees may be exposed to, including:
- Wet floors that could cause slips, falls, and broken bones.
- Exposure to toxic cleaning chemicals that could lead to long-term illnesses.
- Moving heavy furniture, boxes, or equipment and risking back injuries.
- Injury from power tools.
- Repetitive motion injuries.
SPICE Endorsement (Specialty Property Insurance Coverage Endorsement)
This covers your property in transit to and from or at a client's location. SPICE protects your property against damage or loss caused by theft, fire, theft, windstorms, or vandalism if the assets are away from your home office location.
This endorsement will pay you $25,000 for basic business interruption insurance in the event that a catastrophic occurrence prevents you from fulfilling your contract agreement in order to get paid. It can be bundled into your umbrella policy.
Risk Management Is an Important Part of Every Carpet Cleaning Business
There are many factors that could add to your risk. Keep them in mind when you're evaluating commercial insurance policies for your carpet cleaning business. Those include:
- The chemicals, solvents, and compounds you use.
- Drive time to and from your client's premises.
- Length of time spent at each client's property.
- Where you operate.
- The size of your business.
- Any special services you provide.
With the proper insurance policies in place, each of these exposures can be addressed. Here is a list of coverages CommercialInsurance.NET can help you find for your specific business:
How to Get Commercial Insurance for Carpet Cleaning?
Each of the policies described in this article is customizable to fit your business needs. Enter your zip code and click "Get Quote".