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Required costs and types – Forbes Advisor

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Required costs and types – Forbes Advisor

Editor’s note: We earn commissions from Forbes Advisor partner links. Commissions do not influence editors’ opinions or ratings.

Whether it’s cleaning upholstery, deep cleaning, or mopping floors, cleaning jobs can come with unexpected surprises. For example, you might accidentally spill detergent on a customer’s valuable rug or hit another car on your way to a house cleaning job.

Cleaning insurance can be thought of as a one-size-fits-all solution that covers many types of messes.

What is cleaning industry insurance?

Cleaning business insurance includes several coverage types to address specific risks faced by the industry, such as workplace injuries, accidental injuries, property damage to others, theft of equipment, and loss of income. Insurance for small and medium-sized businesses.

For example, if an employee fails to post caution signs on a wet floor and someone slips and is injured, the liability portion of your janitorial insurance policy will pay for their medical expenses.

Who needs cleaning business insurance?

Cleaners have many different types of jobs and clients, from cleaning carpets in private homes to cleaning entire high-rise commercial buildings. Here are some examples of cleaning professionals who can benefit from cleaning business insurance.

  • carpet cleaner
  • commercial cleaner
  • dry cleaner
  • furniture cleaner
  • house cleaner
  • cleaning service
  • laundry service
  • office cleaner

What does cleaning business insurance cover?

Cleaning business insurance combines several types of small business insurance to cover a variety of issues, including damage to business assets, medical expenses for accidental injuries, and workplace illnesses and injuries.

You can start with a Business Owner Policy (BOP). BOP bundles three essential coverage types and is typically less expensive than purchasing each coverage separately.

BOP includes:

Business liability insurance

This covers accidental injury to others and property damage. For example, if you accidentally spill a chemical on a customer’s hardwood floors, your general liability insurance will pay for the repairs. It also covers legal costs if you are sued as a result of the accident.

This coverage also covers other types of issues, such as advertising injuries, reputational damage, and copyright infringement.

commercial property insurance

Commercial real estate insurance covers you if your business’s physical location and equipment is damaged by a covered problem, such as a fire or hailstorm. This includes items you own or rent, such as cleaning supplies, supplies, inventory, and office computers.

business interruption insurance

If you are temporarily unable to operate your cleaning business due to a covered issue, business interruption insurance will cover your loss of income. For example, if a tree falls on your dry cleaning store’s roof and you have to close your business, business interruption insurance will cover your lost income and other expenses, such as temporary relocation to a new office location. I will compensate you.

Business interruption insurance is also called “business income insurance.”

Other types of small business insurance

While BOP is a good foundation, cleaning businesses may need more coverage types to address other types of risks, such as car accidents or employee injuries. Here are some other types of small business insurance to consider.

commercial auto insurance

Commercial auto insurance covers cars, vans, trucks, and other vehicles used for business purposes, such as transporting cleaning equipment and supplies to job sites. Personal auto insurance does not cover work-related accidents.

Common types of insurance included in commercial auto insurance include:

  • Personal injury liability. This covers unintentional injuries to others if you or your employees cause a car accident.
  • Liability for property damage. This covers accidental property damage caused by you or your employees, such as accidentally backing into a fence at a work site.
  • Collision insurance. Covers the cost of replacing or repairing a work vehicle due to a traffic accident.
  • Comprehensive insurance. This covers the cost of replacing or repairing your work vehicle due to problems such as theft, vandalism, flood, fire, falling objects, or inclement weather.
  • Uninsured Motorist (UM)/Underinsured Motorist (UIM) Coverage. Your medical bills will be paid for you and your passengers if you are in a collision with an uninsured or underinsured driver. In some states, you may be able to add his UM to pay for damage to your car caused by an uninsured driver.
  • Medical Expense Coverage and Personal Injury Coverage (PIP). Covers medical expenses for you and your passengers, no matter who is at fault for the accident.

commercial umbrella insurance

If you need more coverage on top of general liability insurance, you may want to consider a commercial umbrella insurance policy. Triggered when business liability insurance expires.

For example, if a customer sues your business for $800,000 in damages, but your liability coverage is limited to $500,000, comprehensive insurance would cover $300,000. This will cover the difference.

Employment and Non-Owned Auto Insurance

If you (or your employees) use your own or rented vehicle to perform your work, this coverage covers accidental injury to others and property damage.

For example, if you rent a truck to transport cleaning supplies to a job site and you cause an accident and are injured, this coverage will cover the other driver’s medical bills.

managed bonds

A management bond is a type of security bond that covers the customer against employee theft. Customers may request that their cleaning company provide this coverage.

workers compensation insurance

Workers’ compensation insurance pays for an employee’s medical bills, lost income, and other expenses (such as physical therapy) if the employee is injured or falls ill on the job. If you employ at least one of your girlfriends, most states require you to obtain workers’ compensation.

What is not covered by cleaning business insurance?

Cleaning insurance business does not cover certain issues such as:

Examples of insurance claims for cleaning businesses

Here are some examples illustrating claim scenarios and the corresponding coverage provided by cleaning business insurance.

How much does cleaning insurance cost?

The median cost for business owners to purchase cleaning business insurance is $520 per yearAccording to Insureon. That’s about $43 per month. Less than a quarter (16%) of Insureon customers pay less than $500 per year for cleaning business insurance, and 69% pay between $500 and $1,000 per year.

Insurance premiums are determined by factors such as:

  • Business size and location: The size and geographic location of your business will influence the determination of insurance costs. For example, businesses in urban areas typically face different risks and higher costs than businesses in rural areas.
  • Insurance types and coverage limitations: The type of insurance you choose and the limits you set will affect the cost of your insurance. Comprehensive coverage packages and increased coverage limits can result in higher premiums.
  • Billing history: A history of frequent or large claims can indicate greater risk associated with your business, which can lead to increased insurance costs.
  • Deduction amount: The deductible is the amount that will be deducted from your insurance claim check. Choosing a higher deductible will reduce the premium you pay for your cleaning business, but it will also reduce the amount you will receive from your insurance company if you make a claim.
  • Company assets: The value of your business assets, such as equipment, inventory, and real estate, will affect your insurance costs. Higher asset values ​​typically result in higher premiums because the insurance company assumes more risk.

Here are examples of cleaning business insurance costs based on the type of coverage you choose.

How to save on cleaning business insurance

As you probably know, insurance premiums are added to the expenses of your cleaning business, reducing your profits. However, you can adopt some strategies to save. Here’s how:

  • consider your options: Prices can vary widely depending on the insurance company. The best way to find the right price is to compare business insurance quotes from several different insurance companies.
  • Consider bundles: A business owners policy (BOP) bundles three types of coverage: business liability insurance, business interruption insurance, and commercial property insurance. BOP typically costs less than purchasing each coverage type separately.
  • Increases deductibles for commercial motor vehicles. Higher deductibles typically result in lower premiums because your insurance company will pay less if you file a commercial auto insurance claim.
  • Ask about discounts: Your insurance company may reduce your premiums if you take preventative measures, such as setting up a workplace safety program.
  • Select annual payment: If you pay your annual premium in full, you may be eligible for a discount.

Where can I get cleaning business insurance?

Most small business insurance companies sell common types of insurance, so you can customize your cleaning business insurance policy. You can start with a BOP and add the coverage types you need, such as workers’ compensation or commercial auto insurance, to his BOP.

Below is a list of some companies that sell small business insurance.

  • eyesight
  • allianz
  • allstate
  • american family insurance
  • amtrust financial
  • car owner insurance
  • Chub
  • cincinnati insurance
  • clear blue insurance
  • CNA
  • erie insurance
  • farmer insurance
  • frankenmuth insurance
  • Hannover
  • hartford
  • liberty mutual
  • Nationwide
  • state farm
  • Traveler
  • utica first insurance
  • westfield insurance

Business insurance made simple

Compare free quotes from top insurance companies on Simply Business. Get your insurance policy within 10 minutes.

Cleaning Business Insurance FAQ

Why does a cleaning business need insurance?

Cleaning business insurance covers all kinds of problems that businesses face, including workplace injuries, lawsuits, car accidents, theft, and more. Without the right type of small business insurance, you’ll have to pay out of pocket for a claim against your cleaning company.

If your cleaning business has employees, most states require you to carry workers’ compensation insurance.

Does your cleaning business need liability insurance?

Cleaning businesses need general liability insurance to cover injuries and property damage caused by accidents caused to others. For example, if you break an expensive vase while cleaning a customer’s home, liability insurance will cover you. Without liability insurance, you’ll have to pay to replace it yourself.

Does my cleaning business need commercial auto insurance?

If you use cars, vans, trucks, or other vehicles in your cleaning business, you must have commercial auto insurance. Personal auto insurance does not cover work-related accidents.

For example, if you get into a car accident while transporting cleaning supplies and supplies to a job site, commercial auto insurance can help pay for medical bills, car repairs, and other expenses.

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