In the busy and vibrant world of cleaning services, spick-and-span spaces are the symbol of success. In the meantime, making sure that your business is safeguarded is just as important as offering excellent cleaning services. This is where cleaning business insurance comes in. This is not just a legal requirement but is a safety net for protecting enterprises or businesses from possible liabilities and risks.
Apart from making sure you have the right amount of insurance coverage to protect your business’s reputation and stability, it also covers accidental damage by employees as well. To understand what this insurance entails and how to get one, keep reading through this article.
What is Cleaning Business Insurance?
Cleaning business insurance is a specialized form of insurance created to offer protection to cleaning companies from different potential liabilities and risks that can affect their operations. Apart from this, this form of insurance usually comes with a range of insurance policies customized to meet the different needs of cleaning businesses.
It also provides financial protection against property damage, legal claims, and accidents. Hence, whether you are a big commercial operation or a small residential cleaning service provider, having the right insurance can help you handle possible financial drawbacks.
How Does It Work?
The concept behind cleaning business insurance is very easy to understand. First of all, this form of insurance offers financial protection against certain risks related to cleaning operations. Thus, when you file a claim, the insurance provider will review the situation to find out if it falls within the coverage criteria.
If it does, the insurance company will reimburse you for damages and losses. So, if you find yourself when you might need the intervention of your insurer, you will need to file a claim. Meanwhile, the premium cost is affected by factors like the size of your business, coverage level, type of services provided, and many more.
What Does Cleaning Business Insurance Cover?
Typically, cleaning business insurance is a combination of different types of small business insurance to cover different issues like workplace injuries and illness, business property damage, and medical expenses.
We will begin with BOP, also known as Business Owners Policy, which is a bundle of three other important types of coverage. It is also cheaper than purchasing each policy individually.
- Commercial property insurance.
- Business liability insurance.
- Business interruption insurance.
Other Small Business Types to Consider for a Cleaning Business
Although BOP is a good insurance option for cleaning businesses, it does not entirely cover all forms of risk. Here are some additional insurance types you can consider:
- Commercial umbrella insurance.
- Workers’ compensation insurance.
- General liability insurance.
- Commercial auto insurance.
- Janitorial bond.
- Property insurance.
- Professional liability insurance.
- Business interruption insurance.
- Employment practices liability insurance.
So, all these insurance types cover various aspects of possible risks.
What Does It Not Cover?
Although cleaning business insurance covers a wide range of events, it does not cover everything that happens. Some of the common exclusions include:
- Employee theft.
- Intentional damage.
- Wear and tear.
- Fraudulent acts.
- Floods
- Wrongful termination.
- Government seizures.
- Infectious diseases.
- Earthquakes.
Who Needs a Cleaning Business Insurance Policy?
Cleaning businesses come with various clients and jobs. Nevertheless, here are some examples of cleaning professionals who can find this form of insurance beneficial:
- Furniture cleaners.
- Office cleaners.
- Carpet cleaners.
- Laundry services.
- Industrial cleaning service providers.
- Commercial cleaners.
- Janitorial services.
- Dry cleaners.
- House cleaners.
Cleaning Business Insurance Cost
The average cost of a cleaning business coverage policy, according to Insureon, is $520 per year. Meanwhile, several factors affect the cost of purchasing a quote as well. Some of them include:
- Company assets.
- Location of the business.
- Claims history.
- Policy types.
- Size of the business.
- Coverage limits.
- Deductible amount.
- Scope of services.
- Number of employees.
Nonetheless, large operations might experience higher premiums, but you must gather different policies to find the best policy for your budget and needs.
How To Get Cleaning Business Insurance
Getting a cleaning business insurance policy involves different steps if you want to choose the right coverage for your business needs. Here is a guide you can use to obtain a policy with ease:
- Evaluate your insurance needs.
- Research insurance companies.
- Gather insurance policies.
- Go through the policy options.
- Select a policy.
- Prepare the necessary documentation.
- Buy the insurance policy.
- Maintain and update your coverage.
If there are significant changes to your business or growth, notify your insurance company to update your policy to make sure you are receiving adequate coverage.
Frequently Asked Questions
Is this insurance required by law?
No, in most cases, owning cleaning business insurance is not necessary by federal or state law. However, it is advisable to have proof of insurance to offer coverage for business owners with employees.
How much general liability insurance do I need for my cleaning business?
This is an answer that you will need to find yourself because factors like the number of employees you have, the size of your business, and your service scope determine the amount of general liability insurance you need. Meanwhile, it is recommended to have at least $1 million in coverage.
Will cleaning business insurance cover damage caused by employees?
Yes, cleaning business insurance covers damage caused by employees if you have general liability insurance. Nevertheless, your policy must have sufficient coverage for all the possible risks you might come across.