No matter what type of cleaning business you own, it needs to be insured to protect you, your livelihood, and your employees. Examples of these companies include:
There are several kinds of business insurance policies available. Deciding which ones suit your needs will depend on things like the structure of your company, the equipment you use, the services you provide, and if you have a company vehicle and/or commercial space. Here are the most typical kinds of insurance for a cleaning business and what they’re good for:
At the bare minimum, any cleaning company needs general liability insurance. This basic coverage typically protects the business from claims of property damage, bodily injury, and personal injury. For example, if the chemicals you used to clean a client’s carpets reacted poorly and ruined the carpet, this insurance would cover the costs of replacing it, as that’s a form of property damage. If a client slips and falls on the floors you just waxed, general liability would cover the costs, as this is a form of bodily injury to a third party (a non-employee).
A business owners policy (BOP) can be thought of as extra coverage to protect your company's physical investments. BOPs tend to include the general liability coverage previously mentioned and then some. You’ll likely spend a lot of money buying vacuums, machinery, cleaning supplies, and protective equipment. You may even buy or lease office space. This type of coverage will repair or replace your assets if they’re lost or damaged due to:
However, a BOP doesn’t cover everything. You’ll still need separate insurance policies for your business vehicles, if applicable, and for your employees.
Will you have company-owned vehicles to transport supplies and equipment from one job site to another? If so, you’ll need commercial auto insurance. This protects the vehicle and the employee operating it if they’re involved in an accident.
Workers’ compensation is mandatory. Simply put, workers’ comp will protect you and your employees if they’re ever injured or become ill on the job. On any given day, cleaners can encounter a variety of biological (e.g., mold, bacteria, diseases), chemical (e.g., cleaning solutions), and physical (e.g., moving heavy equipment, intense labor, slips and falls) hazards at work. Workers’ compensation takes care of an employee’s medical bills, lost income, and injury lawsuit costs.
Regardless of how big or small the company is and how general or niche your services are, it’s imperative that you invest in insurance for your cleaning business. With all these policy options, it can get confusing trying to figure out what is and isn’t needed for your unique business situation. Contact World Insurance Associates today to talk with an expert agent about which coverage is right for you.
This article is not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.