Cleaning Business Insurance: A Guide to Coverage and Costs

As a business owner, you want to protect your cleaning business from unexpected events that could disrupt operations or cause financial losses. The average cost of a general liability policy for a cleaning business is around $500 to $1,000 per year.

You'll want to consider the type of coverage that's right for your business, as it will vary depending on the services you offer and the size of your operation. For example, a cleaning business that specializes in commercial cleaning may need more comprehensive coverage than a small residential cleaning service.

In addition to general liability coverage, you may also want to consider other types of insurance, such as workers' compensation and property insurance. According to the article, workers' compensation insurance typically costs between 1% to 3% of an employee's wages, while property insurance can cost around $200 to $500 per year.

For more insights, see: Workers Compensation Insurance for Cleaning Business

If you're considering getting cleaning business insurance, you're likely wondering what to expect from the process. You'll need to understand the different types of insurance a cleaning business needs, which can include liability insurance, property insurance, and workers' compensation insurance.

You might be required to have insurance depending on the size and type of your cleaning business. Some states or cities may require businesses to have a certain level of insurance coverage.

Here are some common types of insurance a cleaning business may need:

The cost of cleaning business insurance can vary depending on the size and type of your business, as well as the level of coverage you need. You can expect to pay anywhere from a few hundred to several thousand dollars per year.

The cost of cleaning business insurance can vary depending on several factors. On average, Thimble's General Liability Insurance for cleaners ranges from $6 per hour to $38 per month.

The estimated annual premium for General Liability insurance for cleaning businesses is between $500 to $4,500, with a coverage amount of $1 million occurrence limit and $2 million aggregate limit. Commercial Property insurance may cost between $400 to $1,500 per year, with a coverage amount of $5,000 to $10,000.

A fresh viewpoint: Commercial General Liability Coverage Form

Having a claim in the past three to five years can impact your premium. The number of employees you have will also influence the liability and workers' compensation costs. Your business location and the type of work you do, such as residential or commercial cleaning, can also affect your premium.

A Commercial Auto policy may cost between $1,900 to $4,400 per year, with a combined single liability limit of $500,000. Workers' Compensation insurance typically costs between $5,000 to $6,800 per year, with a coverage amount of $100,000 bodily injury (per accident), $500,000 bodily injury policy limit, and $100,000 bodily injury disease (per employee).

Here's a breakdown of estimated annual premiums for different types of insurance:

The median price for cleaning business coverage from Thimble is $38 per month, although the company also offers on-demand coverage for $6 per hour.

A Business Owners Policy, or BOP, is a comprehensive insurance package that typically includes commercial property insurance and general liability insurance. This policy is often a requirement for many cleaning businesses.

A BOP can help cover the costs of lawsuits involving third-party injuries or property damage, lost or stolen business equipment, damage to owned assets, and libel or copyright infringement lawsuits. This is especially important for cleaning businesses that use heavy-duty equipment that can cause significant damage if not used correctly.

The Business Owner's Liability insurance can cover medical expenses, legal fees, and other costs associated with injuries sustained by customers or third parties from business operations. This includes accidental damage caused by your cleaning crew, a homeowner tripping over cleaning equipment, or a client injury at your office.

Here are the most common policy types that make up cleaning business insurance:

Liability policies cover three categories of negligence: bodily injury, property damage, and reputational harm. If something happens and a claim is filed, the insurance company will investigate if your business is legally liable for the injury, damage, or allegations of reputational harm.

Expand your knowledge: Are Insurance Proceeds for Business Property Damage Taxable

Business insurance options are crucial for cleaning businesses to mitigate financial strain and stay profitable. You can get bonded and insured for your cleaning business by speaking with a business insurance broker who can find the best insurance policies at the best rates for your company's needs.

General liability insurance is a must-have for any cleaning business, covering bodily injury, property damage, and personal and advertising injury. This type of insurance can help you deal with risks such as a customer slipping on a recently mopped floor.

A Business Owners Policy (BOP) is a requirement for many cleaning businesses, combining business property insurance and General Liability insurance. It typically costs less than buying the policies separately and can help cover the costs of lawsuits involving third-party injuries or property damage.

Some other insurance products worth considering for your cleaning business include commercial umbrella insurance, tools and equipment coverage, and equipment breakdown insurance. These can provide excess liability coverage, cover your tools and equipment outside of the building, and insure against internal sources of damage like short circuits and mechanical failures.

See what others are reading: Equipment Rental Business Insurance

Here are some of the main types of insurance for cleaning companies:

These types of insurance can help cover the costs of customer injuries or property damage, lost or stolen business equipment, and damage to owned assets. They can also provide excess liability coverage, cover your tools and equipment outside of the building, and insure against internal sources of damage like short circuits and mechanical failures.

For another approach, see: Business Insurance for Equipment

As a cleaning business owner, it's essential to understand how workers' compensation insurance works to protect your employees. This type of insurance is required in most states, depending on the number of employees you have, and can help cover medical expenses and lost wages in case of a job-related injury.

Employers' liability coverage is typically included with a workers' compensation policy and provides defense against lawsuits from employees who sue for negligence. This coverage can respond to awarded compensation, including defense costs, court costs, settlements or judgments, and witness fees.

On a similar theme: How Much Is Workman Comp Insurance for a Small Business

If an employee suffers a work-related injury, workers' compensation insurance can help pay for immediate medical costs, such as emergency room expenses, as well as ongoing medical costs, like medications and physical rehabilitation. It also provides partial lost wages while the employee is unable to work.

Here are some examples of what workers' compensation insurance can cover:

It's worth noting that workers' compensation insurance can also cover illnesses that are a direct result of the job, such as black lung disease suffered by coal miners. However, a disease must be a direct result of the job to be compensable.

If you're a cleaning business owner, you might be wondering who needs cleaning business insurance. Well, the answer is anyone who runs a cleaning business, regardless of its size or type. This includes carpet cleaning, house cleaning, laundry services, janitorial services, construction cleaning, office cleaning, and commercial cleaning companies.

These types of businesses are at risk of facing lawsuits or financial losses due to accidents or property damage. For example, a janitorial service might accidentally break a client's expensive equipment, or a carpet cleaning company might spill cleaning solution on a client's carpet.

Here are some examples of cleaning businesses that need insurance:

It's worth noting that workers' compensation insurance is a separate type of insurance that covers employee injuries, and it's not included in standard cleaning business insurance policies.

Employee injury benefits are a crucial aspect of workers' compensation insurance. This coverage helps compensate employees and provides financial support for various expenses.

Immediate medical costs are covered, including ambulance rides and emergency room expenses. Ongoing medical costs, such as medications and physical rehabilitation, are also covered.

Partial lost wages while the employee is unable to work are reimbursed. Death benefits are provided for fatal incidents, offering financial support to the employee's family.

Here's a breakdown of the benefits:

A janitorial service bond is a type of insurance coverage that protects clients from potential risks associated with hiring a cleaning company. This bond provides coverage for employee theft of money or property, and client contracts.

Having a janitorial service bond can give clients peace of mind, knowing that their belongings are protected. It's a way to mitigate the risk of theft or loss that can occur when employees have access to private homes and offices.

Recommended read: Bonding Insurance for Small Business

To get a janitorial service bond, you'll need to take out the proper types of cleaning business insurance coverage. This can be done by speaking with a business insurance broker who can find the best insurance policies at the best rates for your company's needs.

Here are the specific types of coverage provided by a janitorial service bond:

Professional and Business Insurance is a must-have for any cleaning business. Professional liability insurance, also known as errors & omissions (E&O) insurance, covers claims of financial loss due to providing or failing to provide professional services properly.

It's essential to protect your business from financial strain caused by accidents or mishaps. For a cleaning business, difficulties in handling client property damage, third-party bodily injury, employee injury, and potential theft of client possessions can affect your company's profitability.

Insurance for cleaning businesses covers your business for the ramifications of adverse incidents. This includes accidents like a customer slipping on a recently mopped floor or being accused of damaging someone's property.

For your interest: Business Personal Property Insurance Coverage

Professional liability insurance protects you from financial losses if you're accused of being negligent or failing to properly carry out your job duties. It covers legal claims related to mistakes, such as leaving a stain on an expensive rug.

Here are some examples of cleaning services that often require insurance:

To get the right insurance and bonding for your business, it's best to speak with a business insurance broker. They can find the best insurance policies at the best rates for your company's needs.

Equipment insurance is a must-have for cleaning businesses. It covers your cleaning equipment in case of breakdowns or theft. Your equipment insurance will cover the cost of repair or replacement if a piece of cleaning equipment breaks down.

You have two options for equipment insurance: itemizing your equipment or choosing a blanket amount for coverage. If you choose to itemize the contents of your policy, you'll need to notify your insurance company or broker every time you purchase a new piece of equipment and have it added to your insurance coverage.

For another approach, see: Business Equipment Breakdown Insurance

If you choose to cover your equipment with a blanket amount, this will cover your equipment as a lump sum, regardless of new additions made. This can be a convenient option, but make sure you're not underinsuring your equipment.

Here are some examples of equipment that may be covered under an equipment insurance policy:

It's essential to review your policy to ensure you understand what's covered and what's not.