Cleaning Business Insurance: All You Need to Know

Are you a cleaning service provider?

Then cleaning business insurance is not a privilege but a necessity for you. Imagine one of your employees damaging an expensive artifact at a client’s home by mistake or experiencing equipment failure while on-the-job. The result?

You bear added expenses, increasing your cost significantly. Besides, your reputation suffers, driving the business away. And as a business in a competitive market, you certainly cannot afford to let that happen.

The best way to steer clear of such unpleasant incidents is to get relevant insurance coverage for your cleaning business. Doing so makes your business seem more professional and credible in the eyes of your clients, boosting their confidence in your cleaning services.

But what kind of insurance should you buy? How much would it cost? What is the procedure? In this blog, we will explore all that and much more. Let’s begin!

What is a Cleaning Business Insurance Policy?

As a cleaning business owner, you are at risk of being held liable for any damages, accidents, or harm that might take place as you run your company. In addition, there are also chances of your cleaning equipment and chemicals getting damaged or stolen. In either scenario, you could end up shelling out extra money, which, in turn, might shoot up your losses as well as headaches.

That’s where an insurance policy can provide you with much-needed relief and peace of mind. It helps protect you against such unforeseen events and covers the cost of the damages so that you can go about your business in a stress-free way.

Who Needs Cleaning Business Insurance?

Anyone falling into the category of a professional cleaning service provider needs cleaning insurance for their business. Some of the examples include:

  1. House cleaning service providers
  2. Office cleaning companies
  3. Carpet cleaning businesses
  4. Window cleaning businesses
  5. Dry cleaning service providers
  6. Laundry businesses
  7. Maid services providers
  8. Janitorial service providers
  9. Commercial cleaning companies

What’s critical to note is, each of these businesses anticipates different kinds of risks at varying levels, which you must keep in mind before saying yes to a policy.

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What Type of Coverage Do Cleaning Businesses Require?

Every cleaning business is unique, and so are its insurance coverage requirements. Luckily, there is a range of insurance coverage available to fulfill the distinct demands of a small to large-scale cleaning company. Let’s dig deeper so that you can determine what you should settle for as your cleaning business insurance:

  1. General Liability Insurance

    General liability insurance protects your cleaning business against the risks arising out of third-party liabilities that include the following:

    • Third-party property damages – In case you damage a client’s prized possession, say a lighting system or a high-end carpet.
    • Third-party bodily injuries (non-employees) – If someone slips on a wet floor and sustains injuries or develops an allergy due to cleaning chemicals used.
    • Personal & advertising injuries – When your competitors sue your firm for copyright infringement or libels.
  2. Tools & Equipment Insurance

    Also known as business equipment insurance, this policy covers your cleaning equipment, for instance, a vacuum cleaner or sofa cleaning machine, against unfortunate events of theft and fire. It enables you to cover the cost of any replacement or detriment.

  3. Workers’ Compensation Insurance

    As a business owner of a cleaning company, it’s imperative to have workers’ compensation insurance to cover your employees’ on-the-job injuries or illnesses. Also referred to as workers’ comp, it helps reimburse their wages and medical expenses. In extreme cases where your crew decides to sue for their injuries, this insurance comes in handy to cover your legal fees.

    In many countries, it is necessary for a company to have this insurance.

  4. Commercial Auto Insurance

    As a cleaning business owning a vehicle, you need commercial auto coverage for safe transportation of your cleaning machines and supplies. This would provide you with protection in case an accident takes place. The coverage it offers includes bodily injuries and third-party property damages. It also covers liabilities for third-party vehicular damages and/or injuries to people.

  5. Commercial Property Insurance

    With cleaning insurance for your commercial property, you can cover your office premises, equipment, and furniture from natural disasters like storms, incidents of fire, or acts of theft and vandalism.

  6. Janitorial Bonds

    Janitorial bonds are nothing but a variant of a surety bond. With such a bond in place, you can get coverage for damages arising out of events involving monetary or personal property theft by your staff. It also protects your cleaning business against dissatisfying services. In fact, many home and office owners today prefer to give cleaning service contracts to companies possessing this type of cleaning business insurance to get the job done with peace.

While all of the above business insurance makes sense, it is best to seek advice from a professional insurance company to only get the one your business truly needs.

Why do Cleaning Businesses need Insurance?

Why cleaning business insurance required

Still in two minds about whether you absolutely require cleaning insurance? Here are the top reasons to get it ASAP for your cleaning business:

  1. It keeps financial worries at bay

    In the absence of an adequate cleaning business insurance policy, you may have to bear the costs from your personal or business account when your clients seek a claim or file a lawsuit for damages. Some companies can even go out of business while settling customers’ claims. However, the right cover can avoid such scenarios without adding to your financial burden.

  2. It brings in more work

    Having the most basic general liability insurance makes your clientele confident enough to choose your cleaning services. That’s because they know if things go wrong at all, they would easily be able to obtain a payout for the damages. That instills trust, elevates your goodwill and brand, broadening your client base.

  3. It is a legal requirement

    Many nations across the globe make it mandatory for cleaning businesses to have a cover. While carrying general liability insurance is enough in some parts of the world, others require you to possess a mix of policies including workers’ compensation and commercial auto cover.

  4. It attracts good workers

    Fair pay is good, but benefits are great. Your employees will love it if they know your cleaning business will take care of them if they encounter any accidents or illnesses on the job. It boosts their efficiency and relieves you from the stress of excess costs of medical bills and lost wages.

FAQ

The very first step is to identify the risks and the coverage needs of your cleaning company. Then, understand the different policies at your disposal and compare them. Don’t be afraid to ask questions from insurance companies since that would help you filter out the options. And select the one that provides you with the maximum benefits.

Cleaning business insurance cost varies based on what the policy includes, along with several other factors including:

  • The type of cleaning service you offer
  • Your location
  • Annual revenue
  • Number of employees
  • History of claims
  • Policy limits
  • Policy deductibles
  • Cleaning equipment and tools

General liability coverage, in general, starts from around $40 per month and goes as high as $600 to $1000 per year. It all depends upon your unique needs and the risks involved. In case, if you also need to check the cost of starting a cleaning business, then refer to our blog on how much does it cost to start a cleaning business.

Final Thoughts
Cleaning business insurance is a wise investment for all cleaning companies – whether they are established or merely starting out. From janitorial services to house and carpet cleaning, cleaning insurance can help cover the cost of injuries, property damage, and medical bills should any unfortunate event take place. However, make sure to get coverage from an authorised insurance company to avert losses in the future.

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