Cleaning Business Insurance: Why Do You Need It?

What Is Cleaning Business Insurance? 

Cleaning business insurance is a policy or coverage that safeguards against possible risks and losses your business may encounter. It covers various issues, from property damage and stolen equipment and tools to liability for accidents that might occur while providing services. 

Why do you need cleaning business insurance?

Getting insurance for your cleaning business provides various benefits. Here are a few reasons why it is beneficial: 

• Cleaning business insurance protects the business against any liability. For instance, if a client slips on a wet floor after you clean it, liability insurance can cover the cost of medical expenses and legal fees. 

• Accidents may damage a client’s property when cleaning. Insurance covers property damage, saving you from extra expenses if you damage a piece of furniture or any property while cleaning. 

• Equipment is one of the primary tools needed to provide cleaning services. Theft and damage to equipment can be expensive, but insurance can cover the cost of repairing or replacing it.  

• You can build a client’s trust when they learn you have insurance coverage. 

Types of Insurance for Cleaning Business

There are several types of insurance you can get for your cleaning business. While it may not be a requirement for some states, getting insurance for the business can offer various protection for your business. Foxquilt, offering insurances to small businesses and network professionals allow you Let’s look at some of these insurances and which one you should get for your cleaning business. 

General Liability Insurance

General liability insurance protects your business from bodily injury, personal injury, and property damage. For instance, if your client gets injured after tripping over the vacuum cleaner, general liability insurance would cover their medical expenses. Additionally, legal fees due to lawsuits can add up to your expenses. Getting one can surely ease the process and won’t lead you to financial difficulties. 

Equipment Insurance 

Equipment insurance is a type of insurance that covers damages, loss, or theft of your cleaning equipment. Cleaning equipment is one of the primary means of providing cleaning services. A damaged tool can interrupt your operations and be costly to repair. With equipment insurance, you are secure and don’t need to carry all the burden for repairs or replacements. 

Worker’s Compensation Insurance 

Worker’s compensation insurance can cover medical expenses and lost wages by an employee during injury or sickness while doing or providing cleaning services to your clients. This insurance is required for businesses with employees in most of the states. 

Additionally, the coverage of this insurance includes death benefits if an employee experiences a fatal injury at work. Workers' compensation insurance is not only a legal requirement in most states but also a crucial part of protecting employees. 

When employees know you have insurance coverage to protect them from adverse circumstances, they will feel appreciated and motivated to do their best. Accidents may happen anytime, and this insurance can help the employee and employer. 

Commercial Auto Insurance

Commercial auto insurance is insurance coverage for injuries caused by vehicular accidents while driving for business. Additionally, it has liability coverage in case someone sues you because they were hurt by your vehicle. 

What Does Cleaning Business Insurance Not Cover?

While getting comprehensive insurance is essential to protect a cleaning business, you should remember that not every damage or issue is covered. Here are some exclusions of cleaning business insurance: 

1. Intentional Damage

Insurance policies do not cover damages caused intentionally by an employee or employer. Therefore, any intentional destruction of property, which happens not by accident,  is regarded as a criminal act and excluded from the coverage.

2. Employee Theft

Cleaning business insurance does not cover theft by employees. The business itself would be liable for such incidents. For instance, if a cleaning employee is proven guilty of theft, the business owner should ensure that it is resolved. Also, if jewelry or appliances were stolen from the client’s property while doing the cleaning services, the insurance policies won’t cover these incidents. 

3. General Wear and Tear

Most cleaning equipment has a lifespan. Generally, it becomes obsolete after years, depending on how and where it is used. Most insurance policies do not cover equipment’s wear and tear. Insurance companies can only pay for repairs and replacement within a certain time frame.  

4. Undocumented Property

If a claimed item was not declared or listed on your insurance policy, it might not be covered. That’s why you need to ensure that all of the items and equipment should be declared or listed when filling out the insurance form. It will give you more security and ensure that your claims will be covered in case of damage. 

5. Contractual Liabilities

Your insurance policies will not cover any contract breaches or agreements you are not able to perform. As a business owner, you are responsible for doing what’s stated in the contract to avoid any contractual obligations. 

How To Get Cleaning Business Insurance in 5 Easy Steps

To get cleaning business insurance, you need to consider the following steps: 

1. Assess your business needs. Know the possible risks associated with your business. For instance, your business may be more prone to client property damage if you are in a residential cleaning niche. Therefore, you should consider primarily getting general liability insurance. 

Meanwhile, when focusing on commercial cleaning, there’s a higher risk of equipment damage due to heavy cleaning in larger areas. Therefore, getting equipment insurance is also necessary for your business. 

2. Obtain quotes from various insurance providers. Create a list of insurance providers specializing in the cleaning industry.  After preparing the list of reputable ones, compare and review their prices, coverage, and entire policy options. Ensure that they can provide a policy covering the possible risks of your cleaning business niche. 

3. Choose a provider that suits your business needs. After carefully reviewing each of the insurance providers, choose the best that suits your needs. Moreover, consider their customer service, reputation, and their previous customers’ satisfaction. 

4. Prepare necessary information and documents. Once you have decided to get an insurance policy, be ready to prepare the necessary information and documents. Here are a few things you need to ready: 

• Business License

• List of services provided

• Employee information

• Equipment and supplies inventory

• Safety procedures and protocols

5. Review and purchase the policy. Review the policy again and all the coverage details included in each quote. Check the coverage limits, exclusions, premiums, claims process, renewal terms, and everything related to processing the claims. Clear all questions in your mind by asking the insurance provider. As a result, processing insurance claims would be easier since everything was discussed early.  

Final Thoughts

Getting insurance for your cleaning business may initially seem daunting and a waste of time, but you’ll realize its benefits when losses arise. While it is not legally required for most states, the protection it provides is worth the investment.  

It does not only benefit the employer but also the employees and clients. Assessing your needs is crucial to determining which suits the business. You just need to consider the abovementioned steps carefully and remember that it would also be a proactive strategy for your business.