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, mostly 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 of the examples 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 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, cleaning business insurance would be a good idea.
Here’s everything you need to know about cleaning 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 businesses 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 the 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, cleaning someone’s house or cleaning 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.
East Insurance Groups’ specialized cleaning business insurance program will protect you against these concerns and give you the janitorial and cleaning business insurance coverage you need to protect your business investment.
- 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.
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 $1000 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.
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.
If you own a small to medium-sized business, you might also be interested in reading more about Business Owners Policy.
Ready to Start?
Our Business Insurance agents are available to guide you.