As a cleaning business owner, you might find yourself wondering: “What type of cleaning business insurance do I need?”.
A cleaning business, referred to as a janitorial business, can be demanding and full of risks. As the business owner, you want to make sure you are covered with the right policy that will meet your company needs.
First, a cleaning business can offer such a large variety of services that it is important to list the services that your specific business provides. This will ensure that your policy meets all of your needs. This is also a money-saving move because you will be purchasing the correct amount of coverage for your cleaning business.
Here are a few examples of services your business might provide:
- Trash removal and recycling
- Restroom cleaning
- Carpet cleaning
- Upholstery cleaning, Waxing
- Window cleaning
- Exterior cleaning, such as power washing.
Each service comes with its own risks, but not all risks are created equally. This is why it is critical to know what services you will provide or are willing to provide. This information is key to getting an accurate insurance quote and the right amount of coverage for your business.
Different Types Of Cleaning Business Insurance and Why You Want Them
- General liability, also known as slip and fall insurance, commercial general liability, or commercial liability, is typically the first type of insurance we suggest for any business. General liability insurance will cover your cleaning business in many instances of damage to the customer’s property, bodily injury, or lawsuit.Example: You are cleaning a customer’s house. While you are dusting, you break a valuable vase. Your general liability policy will cover the accident/damage to the customer’s property. If your cleaning business didn’t have a general liability policy, this would have been an out-of-pocket cost.
- Workers’ compensation, also known as workers’ comp, is another valuable option for your cleaning business. Some states require workers’ comp insurance. This policy will cover your employees if they are injured on the job. This includes helping pay medical bills, lost wages, or in the event they try to sue your business legal fees will be covered. Example: Roger is employed with your cleaning business. In the process of cleaning a customer’s property, he falls from the step stool and injures his back. He goes to the urgent care and later completes physical therapy. Your workers’ comp policy will cover your employee by assisting with medical costs and lost wages.
- Property insurance is another important coverage to consider. This type of policy will protect your building, furniture, and business equipment if there is damage, theft, or vandalism. In certain situations, you will be covered from weather damage as well. Example: A thief breaks into your office and steals important equipment. A property insurance policy will cover this incident and you can worry a little less.
- A business owner’s policy is a great option to consider, since it bundles general liability and property insurance. Bundling policies can often save you money! Example: This policy covers your cleaning business in the same way as each individual policy. This policy, however, can save you money!
- Professional liability, also known as errors and omissions, is an additional policy that comes in handy. This policy protects against negligence, civil suits, and professional mistakes. Professional liability will cover legal fees too.Professional liability is definitely needed when you are offering your expertise. Example: You are cleaning a customer’s custom wood table, but the cleaning solution you are using damages the piece of furniture. Your professional liability will assist in covering the damages.
Which Insurance Coverage is Right For My Cleaning Business?
After learning a little more about the different types of insurance for a cleaning business and knowing the services you are willing to provide, it will be easier to determine the best coverage for your business.
It is always smart to purchase the most coverage you can afford. We typically recommend general liability insurance as a good starting point. We then suggest evaluating if you have employees or property to protect.
Insuring your business for its associated risks is how any insurance company will help you determine the best policy for you. If you have employees, we suggest getting a workers’ comp policy. If you want general liability and property insurance, we would then suggest a business owner’s policy.