What is Carpet Cleaning Insurance?
Without a doubt, commercial insurance for a carpet cleaning company 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 business from all of the risks those daily activities can carry.
As a carpet cleaning business owner, 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. Keep reading to learn about the specific types of business insurance you may need and why it's important to have coverage.
Risk Management Is an Important Part of Every Carpet Cleaning Business
There are many factors that could add to your risks. Keep them in mind when you're evaluating commercial insurance policies for your 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 business 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.
What Insurance Carpet Cleaning Businesses Need
A comprehensive carpet cleaning insurance policy should include some if not all of these coverages.
General Liability Insurance
A general liability insurance policy safeguards your commercial carpet business against liability for bodily injury, property damage, and other damages a third party may experience. Adequate liability insurance means that your business will be covered in the event a customer files a lawsuit alleging your company is responsible for property damage or bodily injury. General liability coverage also include coverage for personal and advertising injury (i.e. if a competitor claims you lied about them in your advertising).
Professional Liability Insurance
If you recommend a certain carpet cleaner for a customer's carpet and it ends up destroying their carpet and causes extensive damage to the sub-floor, they may hold you accountable. If customers sue you for negligence, professional liability insurance can provide you legal representation and cover settlement costs.
Commercial Property Insurance
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 actual cash value. While replacement cost coverage may cost a little more, you know that you can replace lost or broken tools with new equipment. Property damage claims can bankrupt a small business—so this coverage is important.
Business Owners Policy
Insurance for carpet cleaners doesn't have to break the bank. If you're looking to save money on your cleaning business insurance, we can check 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 on your cleaning insurance cost. With this type of policy, you will receive the same coverages as you would on the individual policies.
Commercial Umbrella Insurance
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 (or bond company) is a Surety Bond Agreement (sometimes called "contract bonds"). The insurer 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 the bond 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 work accidents.
While most of these risks are beyond your control, there are several hazards carpet cleaners 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.
Workers comp' policies are designed to protect you and your employees. If one of your team members is injured, this insurance coverage can help pay for their medical payments and lost wages.
Consider a 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.
Get a Free Carpet Cleaning Insurance Quote
Are you ready to get a carpet cleaning insurance quote? Complete the form at the top of the page or contact us at 877-907-5267! We will connect you with insurance agents who can help you get the right insurance policies to protect your small business.
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