Insurance for cleaning businesses safeguards you, your staff, and your company against potential lawsuits or accidents that could derail your operations.
Moreover, many states mandate this insurance, regardless of whether your business involves housekeeping, janitorial services, carpet cleaning, or window cleaning.
Fortunately, obtaining insurance is neither as complicated nor as costly as it may seem.
This article aims to clarify the complexities of insurance for cleaning services. We will discuss the necessary types of business insurance, the associated costs, and the process of obtaining an insurance quote.
Why do I need cleaning company insurance?
Insurance for cleaning businesses safeguards your company from potential lawsuits or accidents that could derail your business plan. Legal requirements often mandate that cleaning companies have insurance if they employ staff, own vehicles, or possess real estate.
Think of insurance as a shield protecting your business from threats to your income. Similar to how rubber gloves or a face mask offer personal protection, insurance allows you to concentrate on delivering quality service without the worry of potential mishaps.
Additionally, having insurance demonstrates to your clients that you are committed to your work. It helps build trust and reassures clients. Insurance signifies that you prioritize protecting their property as well as your business.
What type of cleaning insurance do I need?
The essential and fundamental form of insurance for cleaning professionals is general liability insurance. This type of coverage protects both you and your employees in the event of accidents or property damage, regardless of the location.
Other types of insurance for cleaners may be necessary depending on several factors:
- The organizational structure of your business
- The specific equipment you utilize
- Ownership of a company vehicle
Below is a summary of the most prevalent types of insurance:
General liability insurance
General liability insurance can cover damages and legal costs if someone accuses your business of causing injury or property damage. This insurance typically covers three main types of incidents:
- Bodily injury: This occurs when an individual other than yourself or your employees is injured due to something related to your business operations.
- Personal injury: This involves non-physical harm caused by your business, such as if a client sues for damages resulting from accidentally leaked information.
- Property damage: This refers to instances where your business is responsible for damage to someone else’s property.
Tools and equipment insurance
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One likely carries numerous supplies and equipment for a cleaning business from one job to another. In the event of theft or damage to any of these items, one would need to cover the costs of repair or replacement out of pocket if there is no insurance coverage.
Coverage for tools and equipment safeguards these items against theft or damage. This insurance is an extension of a general liability policy.
Commercial auto insurance
If your cleaning business owns vehicles that you or your employees drive, you must have commercial auto insurance. Similarly, if you use your own sedan to travel to and from cleaning properties, a commercial auto policy is necessary to cover your personal vehicle. Personal car insurance cannot be used to insure company cars.
Additionally, if employees use their own cars for work purposes or rent vehicles, hired and non-owned auto insurance is required. This type of commercial auto coverage assists in covering accident damages in such scenarios.
Workers’ compensation insurance
If you hire other cleaners, having workers’ compensation insurance is essential. This type of insurance helps cover medical expenses for injuries or illnesses that occur to you or your employees while working. It also compensates for lost wages during periods when employees are unable to work.
Workers’ compensation can cover both the medical costs and the lost wages during their recovery period if a heavy dresser fractures an employee’s leg while cleaning, for instance. Without this insurance, your business would be liable for all associated expenses.
In every state except Texas, workers’ compensation is legally mandated if you have employees.
How do I get cleaning insurance?
Next Insurance, a company specializing in insurance for small businesses, offers a fast and straightforward method for obtaining cleaning insurance quotes and purchasing coverage. You can also share your certificate of insurance to enhance your brand and build client trust.
The entire process generally takes just a few minutes and customizes to meet the specific needs of small businesses, ensuring you receive a quote for exactly what you require, without any unnecessary extras.
Their team of licensed advisors, based in the U.S., is available to assist with any questions you may have.
The information and content in this article were provided by Next Insurance.
How much does cleaning insurance cost?
On average, Next Insurance policies for cleaning businesses can cost approximately $1 per day, with basic tools and equipment coverage starting at $12.50 per month.
However, the cost of cleaning business insurance varies for each company.
Factors influencing cleaning insurance costs include:
- The services provided
- The number of employees
- The location of the business
- The amount of equipment owned
- The number of vehicles owned or operated
To determine the exact cost of your insurance, obtaining a quote is the most effective approach. This can be done online in a few minutes, saving time compared to in-person or phone inquiries.
Why should cleaning insurance is necessary
Cleaning insurance is essential for several reasons:
- Liability Protection: It covers legal and medical costs if a client or third party is injured or their property is damaged due to your cleaning services. This can include slip and fall accidents or damage to valuable items.
- Professional Reputation: Having insurance demonstrates professionalism and reliability. Clients are more likely to trust and hire a cleaning service that is insured, knowing they are protected in case of an incident.
- Contract Requirements: Many commercial clients and landlords require cleaning companies to have insurance before entering into a contract. It ensures that any potential damages or accidents will be covered without financial loss to the client.
- Employee Coverage: Workers’ compensation insurance, a part of many cleaning insurance policies, protects your employees if they get injured or sick on the job. It helps cover medical expenses and lost wages, ensuring their well-being and reducing the risk of lawsuits.
- Equipment and Property Protection: Cleaning businesses often use expensive equipment and products. Insurance can cover the cost of repairing or replacing these items if they are damaged, lost, or stolen.
- Financial Security: Insurance provides financial security by covering unexpected costs related to accidents, damages, or legal claims. This helps protect your business from significant financial losses that could otherwise jeopardize its operations.
