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Pouring your blood, sweat, and tears into building a business is just the first step in running your own company. You’ve also got to take the proper steps to protect your company and all your hard work with cleaning business insurance. While it sounds a little uncommon, cleaning business insurance is also very necessary.
It isn’t heavily advertised but cleaning business insurance is the protection you need to ensure all your hard work isn’t unnecessarily wiped out in the event of an unforeseen accident. The type of cleaning business insurance you must purchase will be dictated by the size and age of your company along with the type of cleaning services you offer and the specific tools you use to provide these services.
- What is Cleaning Business Insurance?
Many people don’t understand cleaning business insurance or how it works. Often it is a combination of multiple smaller policies which are put together by your agent to protect the unique interests of your individual company.
Some insurance companies do actually carry cleaning business insurance but when they don’t, they combine smaller policies to create one. This allows them to build a cleaning business insurance that protects your unique interests without asking you to pay for additional coverage which may not be necessary.
- Which Policies Should Be Considered When Building a Cleaning Business Insurance Policy?
Every business is different and has different needs. There are five types of insurance which should be considered for cleaning business insurance. A combination of any two or more of these policies may be sufficient.
- General Liability Insurance
- Worker’s Compensation Insurance
- Bonded Insurance Policy
- Commercial Property Insurance
- Commercial Auto Insurance
Each type of policy offers different coverage options and ideally, all five types of coverage would offer the best protection. However, if your company is small or you’re just starting out, you won’t need the same protection as a larger established company.
- Which Type of Coverage is Most Important?
All coverage is important when it comes to cleaning business insurance but if you’re just starting out then general liability coverage is the ideal beginner coverage. General liability coverage is surprisingly affordable, and it protects you against accidental property damage, client injuries, and even advertising defamation.
For instance, perhaps you accidentally bump into a desk while cleaning and a lamp falls to the floor shattering on the way down. Or perhaps a homeowner claims that your cleaning agents irreparably damaged their wood flooring. General liability coverage would be the exact protection you need in these types of cases.
- Is There a Policy to Protect My Supplies?
Yes, there is. The next type of coverage you should consider for your cleaning business insurance is the commercial property coverage. It probably would not have been your first choice if you were unfamiliar with the coverage types but it is the next necessity and here’s why.
A commercial property insurance policy will cover your equipment and your cleaning supplies in case something happens to them. The caveat is that it will often not cover your equipment while it is on someone else’s property, so you should ask about a special floater for this.
It sounds expensive but it’s really not. Many times, you can combine your general liability policy and your commercial property insurance policy into one Business Owner’s Policy (BOP). Bundling these two policies into one BOP should save quite a bit of money and prevent you from paying for two separate policies.
- What Do the Other Policies Cover?
Not that it seems you’ve got the majority of things covered, you may be wondering if the other policies are really important to your cleaning business insurance. The answer is a resounding yes, they are. The size and type of your cleaning business will likely dictate which policies are most important and in what order they should be purchased.
This is where you work with your insurance agent to see which policies can be bundled to save money and offer you the most protection. You’ll also need to consider the coverage amounts in certain policies and you’ll see why that’s important. Here are the other options and why you may need them.
- Worker’s Compensation Insurance – Of course, this type of coverage is only important if you have employees. It cover’s their wages and medical bills in the event that they are hurt on the job. Your premiums will be influenced by the number of employees you have, the type of work they do, your claims history, and state regulations.
- Bonded Insurance Policy – Sometimes called a Business Service Bond, this type of insurance protects you from an employee’s momentary lapse in judgment. If a theft occurs at a client’s property, a janitorial service bond will pay them directly to cover the loss so you don’t have to come out of pocket. This is a great insurance to purchase even if you don’t have employees because it show’s potential clients that you value them and your business by investing into it for their protection.
- Commercial Auto Insurance – Commercial automobile coverage offers protection for accidents in company vehicles. The statistics on automobile accidents are staggering and they can happen to anyone at any time. A commercial auto insurance policy covers accidents that happen in company vehicles, whether you are driving or an employee is driving. The policy will pay for injuries or property damages that occur as a result of said accident.
Don’t’ Wait to Purchase Your Cleaning Business Insurance
Cleaning business insurance is essential to protect what you’ve built. Many people incorrectly assume that insurance isn’t necessary in the early days when your business is just starting out but that couldn’t be further from the truth. You should have cleaning business insurance from the very first day that you offer services.
Now that you know most of the details about cleaning business insurance, you can decide which type of coverage is most important to you. Partner with an experienced and reputable insurance company who can help you build the exact cleaning business insurance coverage you need for your specific company. Then rest easy knowing that nobody can take away what you’ve built.