Cleaning Business Insurance: Costs & Benefits
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% annually.
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 which 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 for 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. Let’s say an employee of yours gets ill while working. As a business owner, you already know these risks could jeopardize your small business.
So what is cleaning business insurance? Insurance for cleaning business (or cleaners business insurance) covers the many risks your cleaning service could cause and helps you stay in business.
In this article, you will learn what business insurance for cleaners is, how much it costs, what it covers, how to get it, and much more.
Read Next: The Ultimate Guide To Commercial Insurance
What Is Cleaning Business Insurance?
As a small business owner, you know that business insurance and bonding are your top priorities. Cleaning company insurance covers your business and assets in case something unexpected happens, and that includes property damage and natural disasters. Most cleaning professionals need several policies. You can buy these insurance policies bundled or separately.
Who Needs Cleaning Business Insurance?
Insurance for cleaning businesses can come in handy for many types of companies, including:
- House cleaning
- Laundry services
- Dry cleaning
- Carpet cleaning
- Office cleaning
- Commercial cleaning
How Cleaning Business Insurance Works
There are many insurance companies that provide cleaning insurance, especially if you live in a big city. That’s why it’s important to know that not all cleaning services insurance providers are equal. When it comes to finding the perfect insurance for cleaners, you need to think about the following:
- Overall Coverage: While public liability coverage should be enough to cover damages caused by your cleaning business, you should think about other policies as well.
- Location: Always check what locations are covered under public liability insurance.
- Reviews: Make sure you read the reviews of other business owners. Most insurance companies have reviews on their websites but you can also ask around for recommendations.
Read More: Handyman Insurance
What is Covered By Cleaning Business Insurance?
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 if 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 Comp Insurance: Workers comp is a type of policy that 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 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 for cleaning will protect you.
- Specialized Insurance For Residential And Commercial Cleaning: Cleaning businesses require specialized coverage (commercial cleaners insurance) 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 to clean houses (or house cleaner 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.
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 small business holds.
On average, the cost of a general liability insurance policy for a cleaning business is less than $45 per month or $530 per year. There are several factors that impact the cost of insurance for cleaning companies, including:
- The type of cleaning services that are offered
- Business equipment
- Business location
- Number of employees
How to Lower the Costs of Cleaning Business Insurance?
One of the best ways to get the cheapest insurance for a cleaning company 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.
Other ways to lower your house cleaning insurance premium are:
- Choose a higher deductible
- Bundle your premiums instead of buying them separately
- Ask for a discount
Read More: The Ultimate Guide To Contractors Insurance
An Example of General Liability Insurance For Window Cleaning Businesses
Cleaning professionals who own window cleaning businesses pay a premium of $54 per month or $650 per year for a general liability policy. This insurance policy covers window cleaners from potential lawsuits that may arise from lawsuits over customer property damage and injuries, as well as advertising injury lawsuits.
Cleaning Business Requirements
In most cases, states don’t require business owners to have insurance for cleaners. However, most cleaning businesses can benefit from having insurance for a cleaning companies, especially a general liability insurance policy that covers bodily injuries and property damages.
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.
Why Choose East Insurance Group?
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.
Cleaning Business Insurance FAQs
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 cleaning 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.
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 specialist who will listen to your specific needs and give you an offer accordingly.
What Type of Bond Do I Need for a Cleaning Service Business?
Cleaning business owners should think about having a fidelity bond, also known as an employee dishonesty bond. This insurance bond covers your clients in case an employee steals something while cleaning.
Furthermore, a janitorial service bond covers your clients in case of property loss (up to the maximum amount that is purchased). Being bonded means having an extra layer of protection and having additional credibility with potential clients who are often concerned about having strangers inside their property.
Can I Clean Without Insurance?
While you are not legally obligated to have insurance for cleaning services, it is a good idea to carry insurance for house cleaners as it can protect you in case something unexpected happens to your employees or your clients while the cleaning is being done.
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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