Mopping floors, dusting shelves, and scrubbing toilets. These are just some of the common chores that practically every home and commercial building regularly needs done, which is partially why cleaning companies have the potential to be so lucrative. But there are insurance risks and liabilities involved if any of this “dirty work” goes wrong, and without the right insurance, they could clean out your personal pockets. Before you get into a big mess of lawsuits, here’s what you need to know about insuring your cleaning business so you can focus on making a living by getting others’ spaces to sparkle.
Who Needs Cleaning Business Insurance?
No matter what type of cleaning business you own, yes, it needs to be insured in order to protect you, your livelihood, and your employees. Examples of these companies include:
- Residential cleaners
- Commercial or office cleaners
- Dry cleaners and other laundry service providers
- Carpet cleaners
- Window washers
What Type of Insurance Does a Cleaning Business Need?
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. Let’s overview the most typical kinds of insurance for a cleaning business and what they’re good for.
General Liability Insurance for a Cleaning Business
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).
Business Owners Policy for a Cleaning Business
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 we just discussed and then some. You’ll likely spend a lot of money buying vacuums and 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:
- Fire
- Severe weather/natural disasters
- Theft and vandalism
However, a BOP doesn’t cover everything. You’ll still need separate insurance policies for your business vehicles, if applicable, and for your employees.
Commercial Auto Insurance for a Cleaning Business
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 Insurance for a Cleaning Business
Workers’ compensation is mandatory to have here in MA and most other states. 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 TJ Woods Insurance Agency today to talk with one of our expert agents about which coverage is right for you. As a small business ourselves, we take pride in helping fellow small businesses succeed. Entrepreneurship brings many challenges; let us take care of the insurance one.
