Now that 2023 begins, what you want most is for your business to grow and be safe. Therefore, insurance for a cleaning business will always be a smart way to protect your company, clients, and workers.
Did you know that a lawsuit could bankrupt you?
Calm! At InsuranceHubPortal we explain what types of insurance for cleaning companies you can purchase, how much you would pay, and what commercial insurance covers.
Insurance for cleaning companies
Why is it important to have cleaning insurance?
Many immigrants and entrepreneurial people have a cleaning business in the United States. And although this business is very promising, it also carries inherent risks. Many times you or your employees must use chemicals, machinery, or carry out activities that could inadvertently cause an accident and this is not good for you or your business.
This is where insurance for cleaning businesses becomes important, since, being on your clients’ property, they could sue you if they trip on a wet floor or something is damaged in their home or business. And things get worse if a worker or several workers are injured while carrying out their cleaning duties since you will have to pay for their lost fees in addition to all their medical expenses.
What happens if I don’t have cleaning insurance?
The law in the USA says that you must have commercial insurance or business insurance if you have a company, so you would be breaking the rules and your company could be closed. In addition to this, if a fire happens in your business, some machinery is stolen or you harm a client, you will have to take care of all the expenses since you would not have financial support by not having insurance.
Types of insurance for cleaning business
What cleaning insurance do I need? To answer this question you must think about what type of work you do and how much risk it entails for you and your staff. However, whether you offer the cleaning service yourself or hire more people, you will still need to protect yourself.
Next, we explain what the different cleaning insurance options are and which one would be most appropriate in each case.
Workers’ Compensation Insurance (Worker’s Compensation)
If you hire four or more people, you will be required to purchase this coverage. This insurance pays your employees’ legal fees while they are on leave due to an illness or injury suffered at work. In addition to this, it will cover the medical expenses and therapies of your staff.
What if a worker sues me? He will also cover all legal expenses.
*Worker’s compensation insurance is around $1,000 annually for a small business.
General civil liability
General liability insurance helps you cover expenses incurred due to personal injuries or property damage to your clients.
For example, if your employees break an appliance or glass during their work, your cleaning insurance will replace that object.
*Business general liability insurance is around $550-600 annually for a small business.
Tools and Equipment Coverage
Some companies use tools and equipment that are expensive to replace or repair, which is why coverage of this type is very useful in case of damage or theft. Simply put, if your company has sophisticated machinery, it is best to opt for Tools and Equipment coverage to avoid significant losses.
*Insurance for tools and equipment is around $1,000 annually for a small business.
Cleaning vehicle insurance
If your business uses vehicles to transport not only workers but also expensive cleaning equipment and machinery, a good option is to obtain commercial auto insurance to protect the equipment you transport and protect your employees from workplace accidents.
Keep in mind that car insurance does not cover these types of circumstances. Additionally, this coverage will help you in the event of theft or loss of your work vehicle.
Surety insurance or theft insurance
Surety insurance is an excellent alternative whether you work in private homes or in companies. You never know when a customer may accuse you of theft or one of your workers may be dishonest and you will need to replace the value of said items.
Remember that this coverage acts as a bond and will be a guarantee for your clients, which will save you headaches.
*The surety insurance is around $100 annually for a small company.
Everything you need to know about cleaning insurance
What insurance should a cleaning company have?
Cleaning liability insurance and workers’ compensation insurance are required under United States law. So for your business to be up and running without any inconvenience, you must take out both coverages.
However, there are cleaning businesses that have higher risks such as exterior window washing, therefore some companies choose to add other coverages to better protect their investment.
What does insurance cover for a cleaning business?
Cleaning insurance will help you cover unexpected expenses of an accident, whether injuries or damages resulting from the work of your employees. These are some of the things that cleaning insurance covers:
- Legal expenses and compensation for lawsuits
- Sources of income for your disabled workers
- Medical expenses due to accidents of your employees
- Theft or deterioration of materials or machinery
What is commercial insurance?
Commercial insurance, also known as business owners insurance (BOP), is a policy that bundles property insurance and liability insurance. This insurance is a great option for small businesses since it is cheaper than purchasing each policy separately and helps cover both property damage and personal injuries.
What does the price of my cleaning insurance depend on?
The price of your cleaning insurance will vary depending on the size and risk level of your business; in addition to other factors such as the coverage chosen, deductibles, and the work performed by your employees. For example, an industrial cleaning company with more than 15 employees will have to pay a higher annual premium than a company with only 3 or 5 employees that only offers house cleaning.
Who needs cleaning insurance?
All people and companies that provide a cleaning service in the USA. Although not everyone needs the same amount of coverage.
For example, a person who has no employees will only need liability insurance, and a company with more than three employees will also need to add workers’ compensation insurance. Even if a company transports equipment in vehicles it will most likely need to purchase commercial auto insurance.
These are the companies that may need cleaning insurance:
- Window cleaning companies
- Carpet Cleaning
- House and business cleaning
- Laundry and dry cleaning
- Industrial kitchen cleaning
- Exterior maintenance and cleaning
- Sanitation of hospitals, prisons, and hotels
- Mobile cleaning 24/7 on request
People who may need cleaning insurance:
- Janitors
- Maintenance staff
- Lawn Care Personnel
- Painters
- Carpet cleaning staff
- House and office cleaning staff
Keep in mind that even if you have fewer than four employees, if an accident happens you would have to bear all the expenses if a single employee falls ill.
How to get insurance for cleaning companies?
If you are looking for insurance for your cleaning business, you will only have to contact an insurance agency and provide the necessary information to obtain your mandatory coverage. In addition, nowadays it is very easy to quote online with different companies and compare prices from your home or with just a call.
Most insurance companies will ask you for the following information when granting you a cleaning policy to determine the cost of your cleaning insurance:
- Location of your company
- Type of cleaning service you provide
- Claim history
- Number of employees
- Number of equipment and machines
- working radius
- Size of your business
- Number and type of vehicles
- Driver history
