As a cleaning professional you face a variety of risks while on the job, and in order to face those risks head-on, you need to have the proper insurance coverage in place. If you don’t have insurance yet, you may be wondering, “What type of insurance do I need for a cleaning business?”
A simple online search will show you more than enough results to make you question insurance even further. But before you push forward with your cleaning business insurance search, we want to explain some coverages you should look for in a policy.
General Liability Insurance
Remember to take into account that just one incident could wipe out your business for good... unless you’re prepared with the proper insurance coverage. That’s where general and professional liability can help. This type of coverage can respond to bodily injury or property damage claims that you could be legally obligated to pay due to your business operations. Here’s an example if you’re confused about when this coverage would apply:
You accidentally spill a cleaning substance, unbeknownst to you at the time, on your client’s expensive designer rug. Unfortunately, the stain has set in and your client is so distraught over the incident that they take you to court.
Without the protection of liability insurance, you could be looking at a lawsuit costing you hundreds to thousands of your own dollars. Depending on the covered claim, our policy offers a $1 million per occurrence limit that could help you out.
Employee Dishonesty Insurance
The Association of Certified Fraud Examiners estimates that businesses lose 5% of their annual revenue to employee fraud and abuse. Small businesses—particularly those that have fewer than 150 employees—are the most vulnerable to employee fraud schemes. As a business owner, you should consider adding employee dishonesty insurance to your risk management strategy because it may protect you from financial loss. This type of coverage is designed to recover inventory and revenue should an employee commit fraud.
Here’s when it could come into play:
Let’s say an employee of a janitorial business is cleaning an office and finds two envelopes full of cash inside someone’s desk drawer. They steal the money and end up purchasing a car.
You could be out of a great deal of money and ruin your relationship with that client if you’re not careful. With the help of our trusted partner, CNA Surety, you can protect your business from these situations.
Inland Marine Insurance
Cleaning gloves, dusters, and all-purpose cleaners...oh my! Cleaning professionals have many tools at their disposal. Some of these supplies have small price tags while others are more expensive, and, if you’re not careful, you could have to deal with the theft of those items.
Inland marine coverage (also referred to as equipment coverage) can cover materials being transported over land or being stored in an off-site location. You want to keep in mind that inland marine coverage will not cover property at a fixed location (like in a building), your vehicle (the policy only covers items in transport), and transport over water (only designed to cover items transported over land).
Here’s an example of when you might use it:
You leave your last cleaning appointment and drive to a nearby diner to grab something to eat. While you’re waiting for your food, someone breaks into your car and steals the company tablet used for transactions. Your window is broken, so you file a police report.
Inland marine insurance could possibly cover your loss and help prevent financial distress.
Workers’ compensation responds to medical expenses, lost wages, and rehabilitation costs to employees who are injured or become sick due to their job. This coverage could also pay death benefits to families of employees who are killed while on the job. This type of insurance gives your business extra protection should one of your employees get injured while on the job.
Let’s say your employee is vacuuming a client’s living room and strains themselves moving furniture. Since it’s a work-related injury, workers’ compensation insurance can respond to the costs relating to rehabilitation.
You can fill out an application for workers’ compensation insurance and get in touch with a licensed agent today.
At Insurance Canopy, we pride ourselves in offering cleaning business insurance that is both suited for cleaning professionals and designed to protect your business from third-party claims. If you’re ready to protect your cleaning business, you can purchase your policy today and if you’d like more guidance, our licensed agents are happy to help.
All policies have conditions, limitations, and exclusions, please read the policy for exact verbiage. Claim scenario circumstances vary in nature and similar claims do not guarantee coverage.
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