There’s never been a better time to open a cleaning company, but like with any other business, there are risks that insurance can help protect against. Cleaning companies benefit from having low start-up costs and overhead, but anytime you perform work on someone else’s property, the risks of injury or damage increase.
Cleaning company insurance can help protect against these risks and provide your business with vital protection.
If you’re just launching your business, you may feel overwhelmed by your insurance options. Is insurance required by law? Do you really need it? What types of coverage will you need?
This cleaning insurance guide will help you better understand your options and what types of coverage you may need for your business. Keep in mind that every business has unique needs, so it’s best to work with an experienced insurance agent to ensure you have all the coverage you need.
Is Cleaning Insurance Required?
Commercial cleaning service insurance requirements vary from state to state. Some states require liability insurance at minimum, but other types of coverage may be required depending on the type of cleaning business you’re running.
If you have employees or a business vehicle, insurance requirements may be more complicated. Auto insurance and worker’s compensation are just two types of insurance that you may need.
Check your local laws and regulations to see what types of insurance are required for cleaning companies. The rules can vary from one city to the next.
Why is Cleaning Insurance Important?
Even if certain types of insurance, such as liability, aren’t required by your city or state, it’s still a good idea to have it.
Insurance provides you and your business with an extra layer of protection against liability. If something goes wrong, you won’t have to worry about it threatening your business or income.
Having insurance not only gives you peace of mind, but it also gives your customers peace of mind. It shows that you take your business seriously and are a true professional. Customers generally will only work with companies that have adequate insurance coverage.
Insurance can cover the cost of:
Damage to customer’s property. If you’re cleaning a customer’s home and accidentally break a vase or valuable item, liability insurance would cover the cost of damages.
Theft. If someone breaks into your office and steals your cleaning equipment, property insurance would cover the cost of replacement.
Employee medical care. Worker’s compensation will cover the cost of an employee’s injury if he/she is hurt while on the job.
Without insurance, you leave your business vulnerable to lawsuits if customer property is damaged or negligence leads to an accident. You wouldn’t drive your vehicle without insurance, so why would you operate your business without it?
Who Needs Cleaning Insurance?
Any business that offers cleaning services should have cleaning insurance. This includes:
Dry cleaning and laundry
What Types of Cleaning Business Insurance Should You Have?
When shopping for cleaning business insurance, one of the first questions you’ll have is: what type of coverage do I need? With so many options, it’s easy to feel overwhelmed and unsure of where to start.
Ultimately, your coverage will depend on your needs, local laws and budget. Generally, a cleaning business requires the same types of coverage that any other business would need. If you offer specialized services, some insurers may have specialized coverage to meet that need.
Some insurance companies offer cleaning business insurance policies designed for professional cleaners. This helps make it a little easier to get the coverage you need, but it’s still important to understand your options so that you can make a sound decision when purchasing your coverage.
Specialized Cleaning Business Insurance
Cleaning business insurance policies generally include:
Property Damage: If your business is hired to clean an office building and the customer’s property is damaged during your cleaning session, your cleaning business insurance policy would cover the cost of damages.
Bodily Injury: If an employee is injured while on the job, this coverage can help cover the cost of injury-related care.
Personal and Advertising Injury Claims: If you accidentally commit copyright infringement with your business advertising, this coverage would cover associated costs.
Additional coverage can be added to this type of policy to ensure that you cover all of your bases.
Not every insurance company will offer cleaning business insurance. Instead, you’ll need to purchase the same types of coverage that any other business would purchase. An insurance broker can help ensure that you have all of the coverage you need, but the most important policies include:
General liability is arguably the most important coverage for a business. It’s sometimes called “commercial general liability” or “slip and fall insurance.”
Liability insurance will cover the cost of:
Damage to a customer’s personal property
Third-party bodily injury
General liability is the foundation of business insurance, and every cleaning service should have it.
Worker’s Compensation Insurance
If you have any employees, you will likely need worker’s compensation insurance. Worker’s comp is required by law in most states, with the exception of Texas. If an employee is injured on the job, this insurance will cover the cost of medical care and provide compensation for lost wages.
Commercial Auto Insurance
If you have company vehicles to haul your equipment and create a professional image, you will need commercial auto insurance. A personal auto insurance policy won’t cover your company vehicles.
Commercial auto insurance covers:
Damage to other people’s property
Liability for damages/injuries to other vehicles and/or people
Depending on your business and vehicles, you may need specialized coverage.
Commercial Property Insurance
Commercial property insurance is another important type of coverage for businesses. It provides important protection for your commercial building and its contents.
A policy like this will cover:
In some cases, property damaged caused by inclement weather may be covered.
Inland Marine Insurance
Along with commercial auto insurance, you also want to consider inland marine insurance. An auto policy generally won’t cover damage to your equipment and tools unless they are permanently attached to the vehicle.
Inland marine insurance will cover these items while your vehicle is in transit or while your equipment/tools are stored at a job site.
Business Owners Policy (BOP)
A BOP is a bundled policy that includes:
Commercial property insurance
Business interruption insurance
Because policies are packaged together, BOP policies are often available at a reduced rate.
A janitorial bond is something that every cleaning business should consider. This is a type of surety bond that will cover damages if a customer accuses an employee of theft. It will also protect your business against unsatisfactory work.
If you offer home cleaning services, this is one type of coverage that you should consider. Many homeowners will require cleaners to have a surety bond to give them peace of mind that their home and property is protected.
How Much is Insurance for a Cleaning Business?
The cost of insurance for a cleaning business will depend on a variety of factors, including:
How many employees you have (if any)
Your equipment and property
The types of cleaning services that you offer
How much revenue your business generates
Costs also depend on what types of coverage you purchase. A more robust policy will cost more, but it will also provide you with more overall protection.
According to CommercialInsurance.net, general liability insurance can cost as little as $45 per month, or up to $600 annually.
Costs are highly dependent on the types of services that you offer. For example, a window cleaner will have higher risks compared to a simple maid service.
Every business has a budget, but insurance is the one area you don’t want to skimp on. If your cleaning company faced a lawsuit, would you be able to cover the costs? The right insurance coverage ensures that if disaster strikes, your business is protected.
Finding the Right Insurance Coverage for Your Cleaning Business
The agents at CommercialInsurance.net can walk you through the process of finding the right coverage for your cleaning business based on your unique needs.
While you can shop for insurance on your own, having an experienced professional help you find the right coverage will save you time and ensure that all your bases are covered.