Starting a cleaning business can be a great way to make a living. Whether you’re a solo cleaner or manage a team of employees, you’ll need to protect your business with insurance. In this article, we’ll explore the different types of insurance available to cleaning businesses and why they’re important.
Types of Insurance for Cleaning Business
There are several types of insurance that cleaning businesses should consider. These include:
Type of Insurance |
Description |
|---|---|
General Liability Insurance |
Protects your business from claims of bodily injury or property damage caused by your cleaning services. |
Workers Compensation Insurance |
Covers medical expenses and lost wages if an employee is injured on the job. |
Commercial Auto Insurance |
Covers damages to vehicles used for business purposes, such as transporting equipment or employees. |
Tools and Equipment Insurance |
Covers damages or loss of equipment, such as vacuums, mops, and cleaning supplies, used for business purposes. |
Business Interruption Insurance |
Covers loss of income due to unexpected events, such as natural disasters or equipment failure, that prevent you from providing your cleaning services. |
General Liability Insurance
General Liability insurance is a must-have for any cleaning business. This type of insurance protects your business from claims of bodily injury or property damage caused by your cleaning services. For example, if one of your employees accidentally knocks over a vase while cleaning a client’s home, your General Liability insurance would cover the cost of replacing the vase.
General Liability insurance can also protect you from lawsuits. If a client slips and falls on a wet floor while your cleaning services are being performed, they may decide to sue your business. General Liability insurance would cover your legal fees and any damages awarded to the client.
When purchasing General Liability insurance, it’s important to make sure that it covers both bodily injury and property damage. You should also check the policy limits to ensure that they are high enough to cover the costs of any potential claims.
Some General Liability insurance policies also include Product Liability insurance. This type of insurance protects your business from claims of injury or damage caused by a product you use in your cleaning services, such as a cleaning solution that causes skin irritation.
Workers Compensation Insurance
If you have employees, you’ll need to purchase Workers Compensation insurance. This type of insurance covers medical expenses and lost wages if an employee is injured on the job. For example, if one of your employees slips and falls while cleaning a client’s home and needs to go to the hospital, Workers Compensation insurance would cover the cost of their medical expenses and lost wages while they recover.
Workers Compensation insurance is required by law in most states. Failure to carry this insurance can result in fines and legal action.
Commercial Auto Insurance
If you use vehicles for business purposes, such as transporting equipment or employees, you’ll need to purchase Commercial Auto insurance. This type of insurance covers damages to the vehicles and any third-party property or bodily injury caused by the vehicles. For example, if one of your employees is driving a company van to a client’s home and gets into an accident, Commercial Auto insurance would cover the cost of any damages to the van and any third-party property or bodily injury.
Commercial Auto insurance can also cover rental vehicles used for business purposes.
Tools and Equipment Insurance
Your cleaning business relies on equipment such as vacuums, mops, and cleaning supplies. If this equipment is damaged or lost, it can be costly to replace. Tools and Equipment insurance can cover the cost of repairing or replacing equipment that is damaged or lost due to unexpected events, such as theft or natural disasters.
When purchasing Tools and Equipment insurance, make sure that the policy covers all of the equipment that your business uses. You should also check the policy limits to ensure that they are high enough to cover the costs of replacing equipment.
Business Interruption Insurance
Unexpected events such as natural disasters or equipment failure can prevent you from providing your cleaning services. This can result in a loss of income for your business. Business Interruption insurance can cover your lost income while your business is unable to operate due to these unexpected events.
When purchasing Business Interruption insurance, make sure that the policy covers the types of unexpected events that are most likely to affect your business. You should also check the policy limits to ensure that they are high enough to cover the income you would lose during a business interruption.
FAQ
Do I really need insurance for my cleaning business?
Yes. Insurance is important for protecting your business from unexpected events that can result in financial loss. Without insurance, a single claim or lawsuit could put your business at risk.
How much will insurance cost for my cleaning business?
The cost of insurance for a cleaning business depends on several factors, including the size of your business, the types of services you provide, and the amount of coverage you need. On average, General Liability insurance for a cleaning business can cost between $400 and $800 per year.
What should I look for when purchasing insurance for my cleaning business?
When purchasing insurance for your cleaning business, you should look for policies that provide the coverage you need at a price you can afford. You should also check the policy limits to ensure that they are high enough to cover the costs of any potential claims.
It’s a good idea to work with an insurance agent who has experience with small businesses. They can help you find the right policies and coverage limits for your business.
What happens if I don’t have insurance and someone sues my cleaning business?
If someone sues your cleaning business and you don’t have insurance, you will be responsible for paying for any damages awarded to the plaintiff out of your own pocket. This could result in financial ruin for your business and personal bankruptcy for you.
Can I purchase insurance online?
Yes. Many insurance companies offer online quotes and policies for small businesses. However, it’s a good idea to work with an insurance agent who can help you find the right policies and coverage limits for your business.
What should I do if I have a claim?
If you have a claim, you should contact your insurance provider as soon as possible. They will guide you through the claims process and help you get the coverage you need to protect your business.
Conclusion
Insurance is an important part of protecting your cleaning business from unexpected events that can result in financial loss. By purchasing General Liability insurance, Workers Compensation insurance, Commercial Auto insurance, Tools and Equipment insurance, and Business Interruption insurance, you can ensure that your business is protected from potential claims and lawsuits.
When purchasing insurance, it’s important to work with an insurance agent who has experience with small businesses. They can help you find the right policies and coverage limits for your business at a price you can afford.