A cleaning business needs insurance as much as any other business, as it faces several risks. These include employees damaging client property, stealing from customers, or suffering injuries from harsh chemicals. Insurance is much more than financial protection. It also solidifies the stability of your business. <\/p>
In addition to insurance, janitorial bonds are a way to show clients that they can trust your business with their valuable property. Cleaning and janitorial companies should have business insurance \u2014 including general liability insurance, workers\u2019 comp and fidelity bonds \u2014 to protect their finances in such cases.<\/p>
Therefore, if you want your cleaning business to flourish, you\u2019ll need general liability insurance to prevent a hit to your business finances. Certain types of insurance may even be required for your cleaning businesses \u2014 for example, cleaners who drive between clients may need a commercial auto policy. Businesses with a certain number of employees are also required to have workers\u2019 compensation coverage.<\/p>
Cleaning business insurance is a small business insurance policy that contains several coverage types to address the specific risks that your industry faces, including workplace injuries, accidental injuries and property damage to others, stolen equipment, and lost income.<\/p>
For example, if your employee fails to put a caution sign on a wet floor and someone slips and injures themselves, the liability portion of your cleaning business insurance will pay for their medical bills.<\/p>
You can think of cleaning business insurance as an all-purpose solution that covers different types of messes.<\/p>
Cleaning business insurance combines several types of small business insurance to cover a range of problems like damage to your business property, medical expenses for accidental injuries, and workplace illness and injuries. These include:<\/p>
You can start with a business owner policy (BOP). A BOP bundles three essential coverage types and it\u2019s typically cheaper than buying each coverage separately.<\/p>
Here is what a BOP includes:<\/p>
This covers accidental injuries and property damage to others. For example, if you accidentally spill chemicals on a client\u2019s hardwood floor, your general liability insurance will pay for repairs. It also covers your legal costs if you are sued because of an accident.<\/p>
This coverage also pays for other types of problems, including advertising injury, reputational harm and copyright infringement.<\/p>
If you cannot temporarily run your cleaning business due to a problem covered by your policy, business interruption insurance covers your lost income. For example, if a tree falls on the roof of your dry cleaning business due to a storm and you have to shut down, business interruption insurance will cover your lost income and other expenses, such as temporarily moving to a new office location.<\/p>
Business interruption insurance is also called \u201cbusiness income insurance.\u201d<\/p>
Commercial property insurance covers the physical location of your business and equipment if they\u2019re damaged due to a problem covered by your policy, such as a fire or hailstorm. It includes items you own and rent, such as cleaning equipment, cleaning products, inventory and office computers.<\/p>
Injuries are common for cleaning employees, and it is your responsibility to make sure your employees get the medical care they need. Cleaning businesses deal with a variety of hazards, including:<\/p>
Workers\u2019 compensation insurance pays for an employee\u2019s medical costs, lost income and other expenses (such as physical therapy) if they suffer injuries or become ill while they\u2019re on the job. If you employ at least one person, most states require you to have workers\u2019 comp.<\/p>
You can make sure your employees\u2019 medical costs don’t come out of your own pocket by carrying workers’ compensation insurance. This helps pay for:<\/p>
A commercial auto insurance policy covers vehicles like cars, vans and trucks used for business purposes, such as transporting your cleaning tools and supplies to a job site. Your personal car insurance policy won\u2019t cover you for work-related accidents.<\/p>
Here are common types of insurance included in a commercial auto insurance policy:<\/p>
A janitorial bond is a type of surety bond that covers your clients for employee theft. Your clients may require that your cleaning company have this coverage.<\/p>
Janitorial bonds show prospective clients that you have an insurance company vouching for your work. It\u2019s a great way to establish trust with new clients.<\/p>
When a client sees the word “bonded” on your website or on marketing materials, they are reassured that if an employee steals or breaks something, your bond provider will cover the replacement costs.<\/p>
If you need more coverage on top of your general liability insurance, you may want to consider a commercial umbrella insurance policy. It kicks in when your business liability insurance is exhausted.<\/p>
This is one of the most economical ways to boost your insurance coverage, through commercial umbrella insurance. It is essentially an insurance policy for your general liability, commercial auto, or employer\u2019s liability coverage (a component of your worker\u2019s comp insurance).<\/p>
If you reach the policy limits of your liability coverage, a commercial umbrella policy helps cover any additional losses.<\/p>
If you or your employees use any personal, leased, or rented vehicles for work, you\u2019ll need hired and non-owned auto insurance (HNOA) to stay financially protected.<\/p>
HNOA insurance offers financial protection against the cost of damages from an accident, including lawsuits and medical expenses. It covers vehicles your business may rent, or your personal vehicle when used for work.<\/p>
Your personal auto insurance covers you while you\u2019re driving to work, but it doesn\u2019t insure you while you\u2019re on the job. If you or an employee are in an accident while running work-related errands, such as fetching supplies, you\u2019ll need HNOA coverage to be financially protected.<\/p>
Your cleaning insurance business won\u2019t cover certain types of issues, including:<\/p>
A cleaning business could have different types of jobs and clients, everything from cleaning a carpet at a private home to cleaning the entirety of a multi-story commercial building. Here are some examples of cleaning professionals who can benefit from cleaning business insurance:<\/p>
A small cleaning business can expect to pay less for insurance than a larger business. Several factors affect the cost of cleaning insurance, including:<\/p>
The median cost for a business owner policy for cleaning business insurance is $520 per year, according to Insureon. That\u2019s about $43 per month. Less than a quarter (16%) of Insureon customers pay less than $500 per year for cleaning business insurance and 69% pay between $500 and $1,000 per year.<\/p>
Cleaning businesses should consider purchasing a fidelity bond, which is also called an employee dishonesty bond. These bonds protect your customers if an employee commits property theft while servicing a client\u2019s home, preventing you from having to compensate customers for losses out of pocket.<\/p>
A janitorial service bond makes sense for many cleaning businesses. This type of fidelity bond pays your client directly in the event of a theft or property loss, up to the maximum amount purchased.<\/p>
As an added bonus, being bonded and insured offers a measure of credibility with potential clients who might otherwise be concerned about having strangers enter their property.<\/p>
As you arre probably well aware, insurance premiums add to your cleaning business expenses, which chip away at your revenue. But you can employ several strategies to save. Here\u2019s how:<\/p>
Here are a few instances illustrating claim scenarios and the corresponding coverage offered by cleaning business insurance.<\/p>