Are you thinking of starting a cleaning business but wondering if insuring it is a great move? Many people usually believe that protecting their cleaning business is a waste of money. However, that is not true. Insuring a cleaning business is one of the most important things to do before you launch it.
There are many benefits of insuring your cleaning business. First, it helps to protect your cleaning business. For instance, if a client sues you for a slip and fall accident, then the court orders you to pay $20,000 in damages; an insurance cover will pay that cost, thus protecting our business from incurring a substantial financial loss. Insuring your business also helps to give your cleaning business an upper hand over your competitors. Research has shown that clients prefer cleaning businesses that are insured because they demonstrate stability and professionalism.
Since about 100% of cleaning jobs are done on other people’s property, your cleaning business has a unique range of exposure that other types of businesses don’t have. That is why having an insurance cover is very important. It will help to protect your business from the risk that could easily topple it. But the big question is, what types of cleaning business insurance do you need? In this post, we will discuss major cleaning insurance that you need to have when starting a cleaning business service
Types of cleaning business insurance
1. General liability insurance
General labiality insurance helps to protect your business from an individual who has been hurt as a result of your cleaning businesses. In the cleaning business industry, this type of insurance is known as slip and fall insurance. The risk of falls and slips are very high in cleaning businesses. If your client accidentally slips while cleaning their property, the client could sue you for damages. This is where general liability insurance comes in. It covers there critical incidents: personal injury, bodily injury, and property damage.
- Bodily injury: Bodily damages refer to someone other than your employees or you who gets injured because of something connected to your cleaning business. For instance, if you fail to place wet floor caution signs while cleaning a commercial property and some passing by slips and falls, that person can sue your client, and your client will shift the blame to you. In that case, a general liability insurance cover will compensate the injured person and cover all their medical expenses. Your business will not spend even a single cent.
- Property damage: If one of your employees damages a client's property by accident, your clients may sue your business and demand compensation for damaged incurred. If this occurs, then general labiality insurance will pay for the replacement. Remember that the cleaning business mainly deals with handling other people’s valuables. Therefore, the risk of damaging your client’s property is very high. This type of insurance will help cover all costs in case you damage your client’s property.
- Personal injury: This refers to the type of damages that are not tangible. For instance, if you get sued by your competitor for publishing a defamatory statement on the media or accidentally commit copyright infringement, general liability insurance will cover all your legal expenses.
2. Workers compensation insurance
Worker’s compensation insurance is vital if you have employees. It covers medical expenses and loss of wages to employees who get injured while performing cleaning duties.
Your cleaning business will only be successful if you have a team of highly skilled and committed employees. Unfortunately, cleaning jobs put your employees at risk of injuries that could be fatal. For instance, falling from a ladder while cleaning a high rise window can result in severe injuries. As the business owner, it is your primary responsibility to ensure that your workers don’t get hurt if they do; you are required to cover all their medical expenses.
A worker compensative insurance covers all medical expenses if an employee gets injured and loses his source of income. It also pays for lawsuits over worker’s injuries. The state of Florida requires that all cleaning businesses with employees (even if it just one employee) to have a worker’s compensation insurance.
3. Janitorial bond
Janitorial bond is a type of surety bond that cover thing such as theft committed by an employee. When you have a janitorial bond, it means that if your employee steals or damages something, your bond provider will cover the cost of replacement.
This bond also covers your business against unsatisfactory work. Most clients, especially those who want long term commitment, usually prefer cleaning businesses with a janitorial bond. It guarantees them that they will get compensated in case you fail to deliver as agreed.
4. Commercial vehicle insurance
Cars are crucial for a cleaning business. They not only help in staff mobility but also help in the transportation cleaning equipment. If employees drive on their own, then your business could be held responsible in case they are at fault in an accident.
This is where commercial vehicle insurance comes in. It covers vehicles that are owned by your cleaning company by paying any cost for property damage or bodily injury to a third party for which your business is held liable. This insurance coverage also covers car repair or replacement.
5. Business owner policy
Business owner polity covers both property and general liability insurance; it is a cheaper option, thus ideal for those who want to save money.
6. Property damage insurance
As its name suggests, property insurance cover helps protect your building, business equipment, and furniture against theft, fire, vandalism, or damage by certain weather elements. For instance, if thieves break into your office and steel critical cleaning equipment, a property insurance cover will compensate you for all damages incurred.
Cost of cleaning business insurance
The cost of cleaning business insurance varies depending on what you want to be included in your plan, among many other factors. Below are important factors that determine the cost of insurance for our cleaning business.
The type of policies you choose
The type of policies you choose will determine your insurance costs. For instance, general liability insurance tends to cost the least while workers compensation insurance is one of the most expensive.
Years in business
Most insurance companies consider years of experience when determining premiums. For instance, if your cleaning business is just starting, then you are likely to pay more premiums than a cleaning business that is well established and has an excellent track record.
The size of your business
The size of your cleaning business will determine the cost of the insurance policies. Large and well-established cleaning businesses usually pay more premiums for property insurance and general liability plans than a startup. This is because their risk is much higher.
How much profits your business makes
The more money your cleaning business makes, the more money accusers will demand when suing your cleaning business; therefore, if your cleaning business is making more money, than you are more likely to pay higher premiums.
The number of staff you have
Worker’s compensation and general liability insurance are directly linked to the number of employees that a business has. Therefore, if you have more employees in your cleaning business, your insurance cost will be much higher.
Location of your business
Yes, your business location will also determine how much your insurance will cost. For instance, if your business is located in an area prone to flooding, earthquakes, or hurricanes, then your property damage insurance will be much higher.
The type of cleaning service offered
The type of cleaning service offered will impact on your insurance cost. For instance, a cleaning company that focuses on commercial window cleaning is at more risk than a cleaning company that provides maid service.
Why you need insurance
Having insurance for your cleaning business is very important. Having insurance will determine if your cleaning business will thrive or fail. Insurance is just like wearing a face mask and gloves while handling hazardous materials. It helps to protect your business against any eventuality. If you insure your cleaning business, you don’t have to worry about something going wrong that will threaten the existence of your business. It will give you the price of mind, thus allowing you to focus on important matters that will help your business grow.
Aside from giving you the much-needed peace of mind, insurance cover also gives you an edge over your competition. It shows your clients your level of professionalism. Most people proffer cleaning businesses that are insured and bonded. It indicates that you are professional and ready to offer high quality and satisfactory cleaning services.
Below are tips reason why you need to insure your cleaning business
It is the law
The state of Florida requires cleaning business with employees to provide certain types of insurance coverage like general liability insurance and worker’s compensation insurance.
It makes you look credible.
Insurance shows to your target client and customers that are credible and trustworthy.
It protects your employees
Your employees are your most valuable asset. Insurance helps to protect them in the event of an accident. Having insurance can help you attract the best employees and retain those you already have because they know that you value them.
It helps to protect your business.
Insurance helps to protect your business against theft and damages caused by fire and certain weather elements
Gives you peace of mind
Know that your business is protected will give you peace of mind and allow you to focus on things that will help your business grow.
