When you work in the cleaning business, you help people work and live in pleasant environments. People rely on your services to keep their property polished and dusted.
However, scratch a pane of glass or damage an expensive vase and you might face a costly lawsuit. Like any business, you are liable for any damage you cause to clients’ property. Even if you are found not guilty after a lawsuit, it can be ruinous to your business’ finances.
Therefore, to avoid financial ruin, it is sensible to take out an insurance policy. In this article, we cover the basics of janitorial services insurance, what it is, why you need it, and how to save some money at the time of its purchase.
Why Do You Need Janitorial Services Insurance?
As mentioned, you are liable for any property damage that occurs while working. Your work likely takes you to a multitude of locations. Some will be expensive properties, containing pricey items or furniture; damage to these can cost thousands. If scratched or broken, you will need to foot the bill. Or an employee might become injured while at work. In this case, you will need to pay medical bills and any lost wages.
Consider these scenarios:
- You are working in someone's house and accidentally knock over an ornament.
- You move a rug to hoover, leading to an employee tripping and breaking their arm. You will need to pay the associated costs.
- When performing laundry service, you accidentally turn the temperature up too high. As a result, all the laundry shrinks. You need to pay for the loss.
- After mopping the floor, you forget to put up a caution sign. As a result, someone slips and gets injured.
In all of these cases, insurance helps cover the losses. It is an invaluable part of your business.
Who Benefits From Janitorial Services Insurance?
Many different cleaning businesses can benefit from a form of janitorial services insurance. These include:
- House cleaning
- Carpet cleaning
- Dry cleaning and laundry services
- Office cleaning
- Maid services
- Janitorial services
What Policies Do Janitorial Service Businesses Need?
Janitorial services insurance or cleaning business insurance provides the following coverages:
- Property damage coverage – While completing your work, if you accidentally damage your client's property, for instance, spilling cleaning fluid on a television. You will be covered for any damage that occurs, including the cost of repair or replacements.
- Bodily injury coverage – While cleaning a home, if an employee becomes injured or falls ill, you will be covered. This includes medical costs, legal fees, and lost earnings. Typically, this is covered by workers' compensation insurance.
- Personal and advertising injury claims – This covers any cases of libel, slander, or copyright infringement regarding advertising. Usually, claims are made by a third-party company. You will be covered for any legal fees and settlements.
Collectively, the above coverage is defined as general liability insurance. However, there are additional insurance packages a janitorial service or cleaning business might consider, including:
- Business owners’ policy (BOP) – A BOP combines general liability insurance with commercial property insurance. Therefore, if you have commercial premises, such as office space, you will be covered for any damage. For example, from fire, vandalism, or other perils. This is in addition to the general liabilities listed above.
- Commercial auto insurance – If your business owns any commercial vehicles, these will legally require commercial auto insurance. It covers collisions and injury to third parties or occupants of the car.
- Workers’ compensation insurance – It will provide additional coverage if an employee becomes injured or ill while at work.
- Umbrella insurance – If you work on an expensive property or clean high-value items, your limits might not cover your risks. If you knock over an expensive vase, you will be required to pay the difference between the value and your limits. With umbrella insurance, you can increase your limits to ensure you are fully covered.
Insurance is designed to save you money in case of future calamity. However, you can still save money when purchasing the policy itself. Follow these tips next time you are buying insurance:
- High-quality training – Provide your staff with regular high-quality training. Mainly focus on dealing with high-value items, such as expensive glass windows or delicate ornaments.
- Review prospective employees – Employees with a poor driving history or a history of accidents, can raise your premiums. Hire the best quality staff to save money.
- Shop around – Get multiple quotes. Insurance companies differ in their risk assessment, and so quotes can vary by significant amounts.
- Pay in full – Paying the entirety of your insurance bill annually, rather than monthly, can save a significant amount of money.
- Raise your deductibles – Raising deductibles always reduces your premiums. However, when making a claim, you will need to find the cash to cover the difference.
- Ask for discounts – Whenever you purchase insurance, always ask the providers if they have any current discounts. You never know what offers might be available at the time.
- Bundles – When purchasing multiple policies with a company, you can get a discount. These are known as bundle discounts.
Send us an email, give us a call, or fill out the free quote on our website if you want to insure your cleaning business.