Cleaning Business Insurance: Tips for Cleaning Company Owners

Should I Get Cleaning Business Insurance?

As the owner of a cleaning company, you face an array of potential accidents and liability risks.

These risks may include:

• Employees getting harmed while working
• Damaging a client’s valuable items, such as a computer
• Vehicles getting lost or damaged in accidents
• Claims of a poor cleaning service or negligence

Therefore, your cleaning business — whether it’s carpet, residential, commercial, or other types of cleaning — should be properly insured.

Having cleaning business insurance provides you with the necessary protection and peace of mind while operating. The right insurance policy means the expenses for damage or an injury do not all have to come from your pocket.

Types of Cleaning Business Insurance Plans

Because of the nature of cleaning businesses, you may have to get an individual plan that combines an array of policies. Remember that the coverage required will depend on your business size, locations served, and the number of employees.

Types of cleaning business insurance you may need are described below.

General Liability Coverage

General liability coverage is the go-to policy for cleaning company owners since it covers common risks and accidents. This type of coverage pays for the costs of property destruction, copyright infringement, legal defense, and more.

Different factors will determine the price of your policy. You may be able to get a discount on your general liability policy by buying it as part of a business owner policy (BOP). This is simply a package that includes multiple insurance plans to protect against the interruption of business, destruction of property, and more.

Professional Liability Plan

This insurance plan covers negligence claims relating to mistakes or non-performance.

The coverage will protect your cleaning firm from lawsuits claiming your service caused injuries to customers. In other words, the professional liability will cover the cost of a legal settlement.

Commercial Auto Policy

This insurance protects vehicles, drivers, and pedestrians involved in an accident. It covers medical expenses and the costs involved in repairing or replacing the vehicle.

Commercial Property Coverage

Every serious cleaning company heavily invests in equipment and supplies such as extension poles and mops. If you lose or damage any equipment, you will spend lots of money on repair or replacement.

Provided that the cause of damage or loss — such as fire — is covered in your plan, this policy can help in offsetting the costs.

Workers’ Compensation Plan

The policy can help offset medical expenses for your employees if they become sick or injured while working. The plan can also help cover any lost wages while an employee undergoes treatment.

Businesses in every state, excluding Texas, are legally required to have this coverage. The coverage may need to be extended to your contractors as well.

Surety Bond Coverage

Some of your clients may require that you have this type of insurance to cover theft claims by any of your workers.

Popular Insurance Companies For Cleaning Businesses

It’s important to select the right insurance company for your cleaning business’s unique needs. That said, the process of comparing different insurance companies is often challenging, especially since there are many options.

We’ve compiled a list of the top cleaning insurance firms to help you narrow down your choices and avoid overpaying for coverage.

The Hartford

The Hartford has been providing coverage specifically for small cleaning firms for more than 30 years. In addition to general liability insurance, the company also provides other policies a cleaning business owner may need.

CoverWallet

CoverWallet is popular with cleaning companies since it has a user-friendly online platform. Cleaning business owners can easily navigate how to apply for coverage, compare policy quotes, and manage their policies. The company also enables connection with coverage advisors via phone, live chat, and email.

Although an insurance policy can be tailored to your particular needs, CoverWallet provides general automobile, liability, and commercial property policies. On the other hand, one disadvantage of CoverWallet is the possibility of incurring expensive broker fees.

Hiscox

Hiscox is rated the best in offering affordable general liability insurance. Other coverage options are outsourced from a digital insurance broker. Additionally, the insurance company offers monthly pocket-friendly coverage with no extra expenses and a convenient online platform.

This insurance company may not operate in your state, however, and it only looks after janitorial services.

Nationwide

As the name implies, Nationwide operates from coast-to-coast. The company has been in the insurance industry for more than 85 years and is highly acclaimed. You can get a single, convenient, and pocket-friendly policy from a combination of different insurance plans.

In 2018, Nationwide became rated number one in customer satisfaction among those with small commercial coverage.

Other Tips for Safeguarding Your Cleaning Business

Getting cleaning business insurance should not be the only step you take when it comes to safeguarding your company.

Here are some other tips for protecting your cleaning business:

• Ensure your business is licensed to operate.
• Use legal business documents.
• Establish a corporation for protecting your valuable assets.
• Streamline your business processes to help establish an environment that is conducive to productive company operation.
• Last but not least, remember that you should already have coverage before starting a cleaning company or interacting with your first client or employee. You cannot cover for a loss that has already happened.

Want more tips for cleaning business owners? Check out our other helpful resources.