Cleaning Business Insurance 101: Everything You Need to Know
The cleaning and maintenance of office buildings, retail, commercial, industrial, educational, and healthcare facilities is a huge industry worth $49 billion. Comprising more than 56,000 cleaning contractor firms, primarily small “mom & pop” operations, the industry in such demand is quite recession-proof.
In the past 10 years, the cleaning industry has grown a total of 6.6% on average each year.
It’s not just about cleaning the floors and windows — it’s about getting the job done just right because your name is on every job you do.
However, the cleaning business industry is not without its risks.
One example is the startup Handy that was sued by a Boston woman who says she was paid less than minimum wage and illegally forced to cover the basic costs of her job. Another NJ cleaning company was sued by misclassifying employees while another sued their cleaning company for a slip and fall injury.
In these and many other situations, commercial cleaning insurance would be a good idea.
Here’s everything you need to know about cleaning business service insurance.
What Cleaning Business Insurance Do I Need?
A cleaning or janitorial service will need to cover a range of business exposures. Your package may include some or all of the following:
- Cleaning Business Commercial Property Insurance: If you own a storefront or building, this will protect it should it be damaged by fire or storm.
- Cleaning Business General Liability Insurance: This type of cleaning insurance will cover you if you or an employee are responsible for injury or property damage, such as if your chemicals led to an allergic reaction or one of your techs damaged an office’s rug.
- Commercial Auto Insurance For Cleaning Company Trucks: This will cover your business’s mobile vehicles if they’re involved in an accident. Your employees may use their own vehicles to drive from client to client with your cleaning equipment and you will be held liable in the case of an accident.
- Workers’ Compensation: This type of cleaning business insurance will protect you should one of your employees have a work-related injury or illness
- Umbrella Liability Insurance: A coverage that will provide extra limits for serious issues.
- Surety Bonding: Bonding insurance for cleaning business guarantees to clients that you can fulfill your contractual responsibilities. With this assurance, many valuable clients feel more comfortable choosing cleaning companies who are bonded.
- Professional Liability Insurance: If your business is just straightforward janitorial and cleaning work, you likely don’t need this coverage. However, if you give your customers advice on how to clean when to clean it and what to clean, and your advice turns out to be incorrect, your customer suffers a monetary loss. then professional liability insurance will protect you.
- Specialized Insurance For Residential And Commercial Cleaning: Cleaning businesses require specialized coverage because a large majority of their services take place off premises for both residential and commercial clients. You might keep an office clean, clean someone’s house, or clean a large industrial building’s windows. All it takes is a spilled bottle on a computer costing you thousands in repair and data recovery, a wrong mixture of chemicals leading to someone getting sick, or a business accusing your employees of theft.
- House and Carpet Cleaning Business Insurance: Every cleaning business is different and requires specialized insurance and bonding coverage to match the specific risks you face. Residential cleaners may be tasked with cleaning delicate household objects from expensive dishes and glasses to windows and carpets. Not to mention theft claims against your employees should objects disappear. In addition, many employers require you to be bonded as an additional precaution.
East Insurance Group’s specialized cleaning business insurance program will protect you against these concerns and give you the janitorial and insurance for cleaning business coverage you need to protect your business investment.
You’ll need a cleaning business insurance policy that is tailored to your business risks and concerns. If you just focus on carpet cleaning, you have similar risks and need a business insurance policy that provides the right commercial protection for your business.
How Much Does Cleaning Business Insurance Cost?
Like other insurance policies, cleaning business insurance costs vary depending on the provider’s evaluation of how much of a risk your business holds.
For example, annual premiums for general liability insurance can be up to $300 or more. While this fee can vary, most cleaning businesses pay under $1,000 annually. Fees for commercial property insurance, on the other hand, are usually around $300.
One of the best ways to get the cheapest cleaning business insurance is to shop around and compare quotes. The median premium for a business owner’s policy (BOP) is $520 per year. Workers’ comp insurance, on the other hand, costs less than \$150 per month or \$1,785 per year. Commercial umbrella insurance will cost you around \$758 per year.
Cleaning Business Insurance Policy Limits
Your policy limits have the most significant impact on how much your insurer will pay on covered claims. The maximum your insurer will pay for a single incident is called the per-occurrence limit, while the maximum your insurer will pay on any claims during your policy period is called an aggregate limit.
Remember that while higher limits cost more, they also provide better coverage. About 90% of cleaning professionals choose general liability policies with a $1 million per-occurrence limit and a $2 million aggregate limit.
Who Needs Cleaning Business Insurance?
Insurance for cleaning business can come in handy for many types of companies, including:
- House cleaning
- Laundry services
- Dry cleaning
- Carpet cleaning
- Office cleaning
- Commercial cleaning
What Type of Insurance for a Cleaning Company Do I Need?
A cleaning business does not come without its share of risks. Whether you are running a pressure washing business or you are looking for house cleaning insurance, you should have an insurance package covering different aspects.
First of all, you must have insurance coverage for the commercial business property of the company. In addition to this, you will need a better line of general liability insurance and commercial auto insurance for trucks.
Both these would help you make things right even if something happens on the way to the place that needs service. On the other side of the spectrum, workers’ compensation insurance will keep your employees confident when they are on the job. Surety bonding and umbrella liability insurance are also options you can explore. They will help you extend the coverage to areas that a typical insurance policy does not cover.
Cleaning Business Insurance FAQs
Do Cleaners Need to Be Insured?
Yes, if you are in the cleaning business, you need to be insured. Most of your clients will want to see a public liability policy before closing the deal with you to protect their own property from any possible damage that might happen.
How Much Does a Cleaning Business License Cost?
Usually, cleaning business licenses and permits you need to register as a limited liability company cost from $100 to $500.
Can I Add an Additional Insured to my Cleaners’ Insurance?
Yes. Usually, additional insureds are added to general liability insurance policies. In some situations, they can also be added to property insurance policies.
How to Get Insurance for a Cleaning Business
The easiest way to get insurance for a cleaning business is to contact an experienced insurance agent who will listen to your specific needs and give you an offer accordingly.
Are you still confused about cleaning business insurance, or do you need some help with getting a quote for your business? Contact us today and get all the information you need fast and for free!
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