How to Get Insurance for a Cleaning Business
Accidents happen — one slippery floor can lead to hefty medical bills or lawsuits. Cleaning business insurance cuts the stress, covers the costs, and protects your bottom line. The best part? Getting insurance for a cleaning business is easier than you think!
How to Protect Your Cleaning Business With Insurance in 5 Steps
Figuring out how to get insurance for a cleaning business doesn’t have to be a hassle. In fact, with the right approach, it’s pretty straightforward. Here’s how to get started with Insurance Canopy:
1. Evaluate your risks
Before jumping into insurance shopping, take a step back and assess the risks your business faces. Are you mainly doing residential cleaning or handling more complex commercial spaces? Do you work with valuable equipment, or are you more concerned about the potential for slip-and-fall accidents?
Knowing your biggest risks will help guide you toward the right coverage.
2. Understand policy options
Insurance isn’t a one-size-fits-all deal. General liability, workers compensation, and property coverage are different types of policies, each covering a specific aspect of your business. Find out what each option covers, and decide which ones are essential to protecting your business.
Oh, and don’t be afraid to ask questions if something doesn’t make sense! Contact us, and we’ll happily guide you through it.
3. Have your business details ready for an accurate estimate
When you request a quote, the more information you can provide, the better. Have details like the size of your business, number of employees, and the type of cleaning services you offer on hand. This will ensure you get an accurate quote and avoid surprises later on.
4. Lock in your coverage and review the fine print
Once you’ve found the right insurance, don’t rush into buying — take time to review the fine print. See exactly what’s covered, what’s excluded, and any conditions you should be aware of.
Fill out an online form with your business information and choose the coverage that best fits your needs to lock in your coverage. Once you complete your payment and receive your certificate of insurance, you’ll be all set!
5. Keep your policy up to date
Your business won’t stay the same forever. New clients, bigger projects, or changes in your team can all affect your coverage needs. Keep your policy up to date to make sure you’re always fully covered.
Use your customer dashboard to review and manage your policy anytime, ensuring it stays aligned with your business needs. Revisit your insurance annually, or sooner if there are any major changes to your business.
What Is Cleaning Business Insurance?
Cleaning business insurance is designed to protect you from unpredictable (but common) risks that come with the job.
It’s tailored to address the unique challenges of the cleaning industry, such as accidental property damage, injuries that occur on the job, or even issues like slip-and-fall accidents. It also covers property damage, medical expenses from injuries, and even legal fees if a client decides to sue.
Do You Need Insurance for a Cleaning Business?
Yes! While insurance may not be required, it can protect you and your cleaning business from financial disaster. The last thing you want is a surprise mishap or disaster that could cost you everything.
Is Insurance Legally Required?
In many states, having certain types of insurance is required by law. For example, if your business has employees, most states require workers compensation insurance to cover the cost of the employee’s medical bills and lost income if they get hurt while working.
You may also need general liability insurance, especially if you’re working in people’s homes or businesses. States like California, Florida, and Texas may even require this kind of insurance, depending on the type of work your cleaning business does.
Clients like commercial property owners, large businesses, or those working with high-value properties, may ask for proof of insurance before hiring you to clean their property. Some will also ask to be added as additional insureds to your policy.
Note: Even if insurance isn’t mandatory for your cleaning business, it’s a good idea to review local regulations and industry contracts to ensure you’re fully covered. This helps you avoid fines and protect your business from potential lawsuits or claims.
What are the Risks of Operating Without Insurance for a Cleaning Business?
Operating without insurance is a gamble. Accidents, damages, or even unhappy clients can lead to cleaning business claims that quickly spiral out of control. Without insurance, you could be left paying out-of-pocket for repairs, medical bills, or legal fees.
Not having insurance also puts your reputation on the line. Clients may feel uneasy working with a cleaning service that doesn’t have the right coverage, especially if something goes wrong during a job. This can result in losing customers or having trouble securing new ones.
If your employees sustain injuries or accidents on the job, it could leave you vulnerable to lawsuits and fines. Without insurance, you could be responsible for covering their medical expenses and any lost wages out of pocket, which could be financially devastating. In worst-case scenarios, these costs can push you to the point of closing your business.
What Kind of Insurance Does a Cleaning Business Need?
Getting insurance for a cleaning business is easy, but understanding exactly what coverage your business needs can be confusing. Here’s a checklist to help you know how to customize your policy to best protect your business.
- Whether you clean homes or businesses, you need general liability coverage
Every cleaning business needs general liability insurance. It’s designed to cover third-party injury and property damage claims. For example, if you accidentally break a vase or a bypasser slips on a wet floor, this insurance can pay for the costs.
(Note that general liability only covers third parties — it doesn’t cover you or your employees.)
- If you store customer data or do online transactions, you need cyber liability coverage
Cyber liability insurance protects you if there’s a cyberattack or data breach. For example, if a hacker gains access to your client’s personal information or payment details stored on your website or point of sale software, it can cover the cost of recovering lost data and addressing any damage caused by the breach.
- If you rely on tools or equipment to get the job done, you need tools and equipment coverage
Also known as inland marine insurance, this covers the cost of replacing or repairing your tools if they’re stolen or damaged, like if your carpet shampooer or steam cleaner gets damaged while you’re on a job. It’s especially important if your tools and supplies are expensive or essential for your work.
- If you want to reassure clients that you’re trustworthy, you need a janitorial service bond
A bond helps protect you if an employee is accused of stealing from or damaging the property of a client. For example, if a customer claims that something went missing while your employees were cleaning, having a janitorial service bond in place reassures the client that their stolen property will be reimbursed if proven valid.
Learn more about cleaning business insurance and bonding.
- If you’re working for other businesses, you should consider additional insureds
Some third parties may require you to add them to your insurance policy as an “additional insured” as a condition of a contract. This ensures that they’re covered if anything happens while you’re working for them.
For example, if you’re cleaning a commercial building and one of their tenants slips, falls, and sustains an injury while traversing a wet floor you just cleaned, they might name both you and the building manager or owner in a suit.
As an additional insured on your policy, your insurance can protect both you and your client, since the work arose out of your work.
- If you have employees, you need workers compensation coverage
If one of your employees gets hurt on the job, workers compensation helps cover their medical bills and lost wages. For example, if an employee injures their back while lifting cleaning supplies, this will cover medical expenses and time they need off work to recover.
- If you drive a vehicle for business, you need commercial auto coverage
If you use a vehicle for your cleaning business, this insurance covers you if you’re in an accident or if your vehicle gets damaged while you’re working. For instance, if you’re driving from one job to another and get into an accident, this ensures that both the vehicle damage and any injury-related costs are covered.
Note: Commercial auto coverage isn’t available through our app (yet!), but you can easily purchase it by contacting our retail team. They’ll help you get the right coverage for your business vehicles.
How Much Is Liability Insurance for a Small Cleaning Business?
With Insurance Canopy, you can get coverage starting at just $39 per month or $435 annually. That’s lower than the national average cost of $520 per year, giving you significant savings without sacrificing the protection your business needs.
Here’s a breakdown of the most popular cleaning business insurance policies and their pricing:
- General liability: $679.92 per year
- Tools and equipment: $51.64 per year
- Janitorial service bond: $131 per year
- Workers compensation: $1,141.86 per year
- Cyber liability: $99 per year
5 Mistakes to Avoid When Getting Insurance for a Cleaning Business
Getting insurance for your cleaning company is straightforward once you know what you need. But there are some pitfalls to avoid:
1. Picking the cheapest policy without checking the coverage
While saving money is important, always ensure the policy offers adequate protection for your business needs. The lowest price doesn’t always mean the best deal if the coverage is too limited.
2. Skimming over what’s not covered
Carefully review the exclusions in your policy. Some risks, like damage to client property or employee injuries, might not be covered under a basic policy. Understanding these exclusions can help you avoid unexpected costs.
3. Failing to review the claims process before buying
Filing a claim with Insurance Canopy is easy and straightforward — you can do it directly from your customer dashboard. Taking a moment to understand how the claims process works with any insurance provider before purchasing is important.
A complicated or slow process can delay your ability to recover from an incident, but with Insurance Canopy, you’ll have a hassle-free experience when you need it most.
4. Overlooking the need for additional insureds
Depending on your contracts, you might need to add clients, landlords, or business partners as additional insureds. Failing to do so could result in legal or financial complications if something goes wrong on the job.
5. Not checking the reputation of the insurance company or carrier
A policy might seem to have the right coverage at a good price, but if the customer experience is poor, it might cost you in the long run. Check sites like Google and Facebook for reviews and see what people say when engaging with the company on social apps.
With Insurance Canopy, you’ll get 5-star rated customer care from a team of live, U.S.-based licensed agents who don’t work on commission. They can walk you through the process, answer questions, and help you get the coverage you need. Plus, our carriers are A+ rated — it doesn’t get better than that!
FAQs About Cleaning Business Insurance
Are there any specific insurance requirements for cleaning businesses in my state?
Insurance requirements for cleaning businesses can vary by state, so check your local laws and regulations. In some states, insurance like general liability insurance and workers compensation may be mandatory if you have employees or work on commercial properties.
Additionally, specific industries or contracts may require you to carry particular coverage.
How quickly can I get insurance for my cleaning business?
With Insurance Canopy, you can apply, choose your coverage, and receive your insurance documents in just minutes. That means you can start working with coverage right away!
What should I do if I need to file an insurance claim for my cleaning business?
If you need to file a claim, you can do this online with Insurance Canopy through your dashboard. If an incident occurs that might result in a claim, feel free to get in touch with us right away to explain what happened, including any property damage or injuries.
Document everything thoroughly, from photos to written descriptions of the situation, to speed up the claims process. If you do file a claim, a claims adjustor will be assigned to it. Follow their instructions closely to ensure your claim is processed smoothly.
Get Cleaning Business Insurance in Minutes!
Don’t wait for a mishap to catch you off guard. Protect your business, clients, and reputation today by getting started with an affordable policy with Insurance Canopy.
