Cleaning Business Insurance: All You Need to Know

Sections of this topic

    Running a cleaning business involves dealing with several risks. Employees might accidentally damage client property, steal from customers, or get hurt from using strong chemicals. That’s why it’s crucial for cleaning and janitorial companies to have business insurance. 

    This includes general liability insurance, workers’ compensation, and fidelity bonds to safeguard their finances when issues arise. Here’s a guide on purchasing business insurance and service bonds for cleaning companies, plus some tips on where to start shopping.

    >> Buy NEXT’s Insurance Policy Online >>

    What Is Cleaning Business Insurance?

    Cleaning business insurance is a tailored small business policy designed to cover your industry’s unique risks. It includes protections for workplace injuries, accidental harm to others, property damage, stolen equipment, and lost income.

    Imagine this: Your employee forgets to place a caution sign on a wet floor, causing someone to slip and get hurt. The liability part of your cleaning business insurance steps in to cover their medical expenses.

    Who Needs Cleaning Business Insurance?

    A cleaning business can handle various tasks and clients, from tidying up a carpet in someone’s home to maintaining an entire multi-story office building. Here are some examples of cleaning professionals who can benefit from cleaning business insurance:

    • Carpet cleaners
    • Commercial cleaners
    • Dry cleaners
    • Furniture cleaners
    • House cleaners
    • Janitorial services
    • Laundry services
    • Office cleaners

    >> Buy NEXT’s Insurance Policy Online >>

    What Does Cleaning Business Insurance Cover?

    Cleaning business insurance combines various types of small business coverage to address issues like business property damage, medical costs for accidental injuries, and workplace illnesses and injuries.

    A good starting point is a Business Owner’s Policy (BOP). This policy combines three essential types of coverage and is usually more affordable than purchasing each separately. Here’s what a BOP includes:

    Business Liability Insurance

    General liability insurance covers accidental injuries and property damage to others. For instance, if you spill chemicals on a client’s hardwood floor, this insurance covers the repair costs. It also covers your legal expenses if you are sued over an accident.

    This coverage extends to other issues like advertising injury, reputational harm, and copyright infringement.

    Commercial Property Insurance

    Commercial property insurance protects your business’s physical location and equipment if they’re damaged by events like fires or hailstorms. This coverage includes items you own or rent, such as cleaning tools, products, inventory, and office computers.

    Business Interruption Insurance

    If your cleaning business has to close temporarily because of a covered issue, business interruption insurance helps cover your lost income. For instance, if a tree falls on your roof and you need to shut down, this insurance will cover the lost income and additional expenses like relocating to a temporary office.

    Other Small Business Insurance Types

    A Business Owner’s Policy (BOP) is a solid start, but your cleaning business may need additional coverage to handle other risks like auto accidents and employee injuries. Here are some other types of small business insurance to consider:

    Commercial Auto Insurance

    A commercial auto insurance policy covers vehicles like cars, vans, and trucks used for business purposes, such as transporting cleaning tools and supplies to job sites. Your personal car insurance won’t cover work-related accidents.

    Here are common types of coverage included in a commercial auto insurance policy:

    • Bodily Injury Liability: Covers accidental injuries to others if you or an employee causes a car crash.
    • Property Damage Liability: This covers accidental property damage caused by you or an employee, such as backing into a fence at a job site.
    • Collision Insurance: This covers replacing or repairing your work vehicle after a car accident.
    • Comprehensive Insurance: This covers the cost to replace or repair your work vehicle for issues like theft, vandalism, floods, fires, falling objects, and severe weather.
    • Uninsured/Underinsured Motorist (UM/UIM) Coverage: This pays medical expenses for you and your passengers if a driver without insurance or insufficient insurance crashes into you. In some states, you can add UM to cover damage to your car caused by an uninsured driver.
    • Medical Expenses Coverage and Personal Injury Protection (PIP): This covers medical expenses for you and your passengers regardless of who is at fault for the car accident.

    Commercial Umbrella Insurance

    Consider a commercial umbrella insurance policy if you require additional coverage beyond what your general liability insurance offers. This policy provides extra protection when your standard liability insurance is maxed out.

    For example, if a client sues your business for $800,000 in damages and your liability coverage only covers $500,000, the umbrella policy would cover the remaining $300,000.

    >> Buy NEXT’s Insurance >>

    Hired and Non-Owned Auto Insurance

    If you or your employees use a personal or rented vehicle for business, this coverage handles accidental injuries and property damage to others.

    For instance, if you rent a truck to transport cleaning tools to a job site and cause a car crash resulting in injuries, this coverage would pay for the other driver’s medical expenses.

    Janitorial Bond

    A janitorial bond is a surety bond that protects your clients against employee theft. Many clients may require your cleaning company to have this coverage to safeguard their property.

    Workers’ Compensation Insurance

    Workers’ compensation insurance covers an employee’s medical expenses, lost wages, and other costs like physical therapy if they get injured or fall ill. Most states mandate this coverage if you have at least one employee.

    What’s Not Covered by Cleaning Business Insurance?

    Your cleaning business insurance won’t cover specific issues, including:

    • Floods
    • Earthquakes
    • Fraudulent and intentional acts
    • Government seizures
    • Infectious diseases
    • Wrongful termination (unless you have employment practices liability insurance)

    >> Buy Next’s Insurance Policy >>

    Ways to Save on Cleaning Business Insurance

    As you’re likely aware, insurance premiums can add to your cleaning business expenses, affecting your revenue. However, you can use several strategies to save on these costs:

    • Explore your options: Prices can vary significantly between insurers. The best way to find a good rate is to compare business insurance quotes from multiple providers.
    • Look into bundling. A Business Owner’s Policy (BOP) combines three types of coverage: business liability insurance, business interruption insurance, and commercial property insurance. A BOP is usually cheaper than buying each coverage type separately.
    • Increase your commercial auto deductible: A higher deductible often lowers your premium because the insurer will pay less if you file a claim.
    • Ask about discounts: Insurers may reduce premiums if you implement preventive measures, like setting up a workplace safety program.
    • Choose an annual payment: Paying your annual premium in full may qualify you for a discount.

    Where Can You Get Cleaning Business Insurance?

    Most small business insurance providers offer common types of coverage, allowing you to customize your cleaning business insurance policy. You can start with a BOP and add other necessary coverages like workers’ compensation and commercial auto insurance.

    Each company will likely offer a slightly different insurance quote as they calculate premiums differently. Getting quotes online can simplify comparing costs, helping you find the best option for your needs.

    >> Buy NEXT’s Insurance Policy >>

    Next logo


    Best for Getting General Liability Insurance Fast

    • You can add tools and equipment insurance to a general liability policy, protecting the tools your employees use
    • Next, include errors and omissions insurance with general liability insurance, protecting you if a client accuses you of negligence
    • It doesn’t sell janitorial service bonds

    You can get a quote and buy an insurance policy online from NEXT in just a few minutes, which is why it’s one of our top picks for general liability insurance. Once you have a policy, you can add an additional insured at no extra cost and access your certificate of insurance anytime. 

    It also states that many claims filed online or over the phone can be resolved within 48 hours. Whether you’re a sole proprietor, an LLC, or running a home-based business, NEXT offers tailored packages to suit your specific needs. 

    They also provide tools and resources to manage your policy easily online. Serving over 420,000 small businesses, Next helps you meet legal requirements and protect your business without breaking the bank or wasting time.

    >> Buy NEXT’s Insurance >>

    Hiscox logo


    Best for Buying Commercial Crime Insurance Online

    • Hiscox offers commercial crime insurance as an add-on to a BOP, covering theft of client property up to $5,000
    • You can purchase a BOP online
    • Hiscox doesn’t provide its own commercial auto insurance; you’ll be redirected to CyberPolicy to get quotes from other providers

    Hiscox doesn’t offer fidelity bonds but provides commercial crime insurance, which you can purchase online. This coverage protects your business if an employee steals from a cleaning client or your company. You’ll need to look elsewhere if you also need commercial auto insurance.

    >> Buy Hiscox’s Insurance >>

    • Low average quoted premiums: Budget-friendly options for startups and smaller operations
    • Offers loss control services and a nurse helpline: Extra resources to help manage risks and workplace incidents
    • High financial strength rating: A trustworthy option for the long-term
    • No employee benefits offered: You’ll need to find health or dental insurance for your staff elsewhere

    When safeguarding your cleaning business, you need a trusted and knowledgeable insurance partner. Acuity, established in 1925, serves over 120,000 businesses, showcasing their expertise and reliability. 

    For a cleaning business owner like yourself, this means peace of mind. Acuity boasts a 97% positive experience rate for handling claims, ensuring that you’re in capable hands if the unexpected happens.

    >> Buy Acuity’s Insurance >>

    Cleaning Business Insurance – FAQs

    Bottom Line – Cleaning Business Insurance 

    Whether you’re aiming to protect your business against lawsuits, property damage, or financial losses, there’s an insurance type that can help. By understanding the different insurance options, estimating costs, and conducting thorough research, you can find the best provider for your cleaning business.

    Remember, paying for insurance is an investment in your business’s protection and success, potentially saving you thousands of dollars in the long run.

    >> Buy NEXT’s Insurance Online >>