What are the benefits of having a cleaning business insurance policy?
Most likely, you started or will start your house cleaning or janitorial service as a sole proprietorship, which is the most straightforward business form for new businesses. This means that any business losses will be deducted from your personal account.
Consider this scenario: someone sues your company for a slip-and-fall accident, and the court orders you to pay tens of thousands of dollars in damages and legal fees. You’d have to pay for this out of pocket if you didn’t have small business insurance.
Insurance can assist you in marketing your company.
Insurance is about much more than just financial security. It also ensures the long-term viability of your company. Janitorial bonds, in addition to insurance, are a means to demonstrate clients that you can trust them with their expensive goods.
Let’s look at the various types of cleaning service business insurance that can safeguard your firm at each point of its growth:
The lifeline for slip-and-fall accidents is general liability insurance.
General liability insurance, also known as “slip-and-fall insurance,” is essential for any small cleaning company.
Falls, trips, and slips are all too common in your area of work. Your client could be sued for damages if a visitor slips on your freshly waxed floors. As a result, the customer could shift the blame.
A general liability insurance policy can aid in this situation. This coverage, often known as commercial general liability, protects your company in the following situations:
Injuries to third parties (those sustained by a non-employee)
Property damage on the job site (for example, an employee cleaning the floor of a client’s home with the incorrect solution)
Injuries are advertised (e.g., you publish a defamatory statement about a competitor on social media)
Because two policies are better than one, the business owner’s policy
You’ve probably already put a lot of money into your company.
You’ve undoubtedly bought commercial cleaning equipment including vacuum cleaners, buffers, personal protective equipment, and cleaning supplies, for example. Perhaps you bought or rented a commercial space.
This implies you have physical assets that need to be protected, and commercial property insurance can help.
If your insured cleaning equipment is lost or destroyed, commercial property insurance will pay to replace or repair it.
- Extreme weather
Property insurance can be purchased separately, or you may be able to combine it with general liability coverage in a business owner’s policy (BOP). You can save money on your premiums by combining these two plans into a BOP.
Workers’ compensation insurance: Provide for employees while adhering to state regulations.
Cleaning personnel are prone to injuries, and it is your obligation to ensure that they receive the medical attention they require.
- Cleaning companies face a variety of risks, including:
- Diseases, bacteria, and mould are all biological.
- Cleaning solutions (chemicals)
Repetitive motions, moving equipment, and slip and fall incidents are all physical hazards.
Workers’ compensation insurance might protect you from having to pay for your employees’ medical expenses out of your own money. This aids in the payment of:
Workers’ compensation lawsuits
Medical bills and lost pay for employees due to workplace accidents
Even if you only have one employee, most states now require you to have this coverage.
If you’re a solo entrepreneur, workers’ compensation can save your business if you’re ever hurt on the job and unable to work. Your usual health insurance may not cover a work-related accident, but workers’ compensation coverage can help with medical bills and compensate for lost wages.
Most states require commercial auto insurance
Commercial auto insurance is similar to personal auto insurance, only it covers company vehicles. In most states, it is currently obligatory.
Any damages, legal bills, and injuries incurred if you or an employee are at fault in an accident while driving a company-owned car might cost you a fortune. These expenses, as well as vehicle theft and damage from vandalism and harsh weather, are covered by commercial auto insurance.
Auto insurance for hired and non-owned vehicles while at work
To keep financially protected, you’ll require hired and non-owned auto insurance (HNOA) if you or your workers utilise personal, leased, or rented automobiles for work.
HNOA insurance protects you from the financial consequences of an accident, such as lawsuits and hospital bills. It covers vehicles rented by your company as well as personal automobiles utilised for work.
Your personal auto insurance covers you when you’re driving to work, but not while you’re actually working. You’ll need HNOA coverage to be financially covered if you or an employee are in an accident while performing work-related errands, such as getting supplies.
Commercial umbrella insurance provides an additional degree of financial security.
Commercial umbrella insurance is one of the most cost-effective solutions to increase your insurance coverage. It’s essentially a policy for general liability, commercial auto, or employer’s liability (a component of worker’s compensation insurance).
If your liability coverage reaches its policy limits, a business umbrella policy will kick in and cover any additional damages.
For example, if a $1.5 million claim was filed against your general liability insurance and you only have $1 million in coverage, you would be responsible for the $500,000 difference. Your insurance company would pay that $500,000 if you had a $2 million commercial umbrella policy.
Janitorial bond: Evidence of your cleaning company’s reliability.
Janitorial bonds (a sort of surety bond) demonstrate to potential clients that your work is backed by an insurance firm. It’s an excellent technique to gain new clients’ trust.
When a client sees the word “bonded” on your website or marketing materials, they know that if an employee steals or breaks something, your bond provider will cover the expenses of replacement.
Check out Insureon’s guide to cleaning licences and bonds to discover more about the advantages of being bonded.
With Insureon, you can compare quotations from reputable carriers.
Compare free insurance quotes from top-rated US companies today by completing Insureon’s simple online application. You can also speak with an insurance representative about your insurance requirements. You can start coverage in less than 24 hours once you’ve found the proper policy for your small business.