Know Why Cleaning Business Insurance is a Must-Have for Your Business

“Risks are part of life and is beyond our control, but it should not be part of your business. Want control over the risks involved in your business, GET INSURED TODAY.”

Have you ever realized that when a disaster hits your business, you are almost on your way to getting financially ruined? More than 40% of small businesses never reopen after any unavoidable disaster hits their business. Do they become financially inviable? Yes, they do, and they are in severe urge of something that either supports them or helps them reduce the loss. 

That’s when cleaning business insurance comes in. With the right insurance coverage in place, you can safeguard your company from unanticipated occurrences like property loss, liability lawsuits, and workplace accidents. 

In this comprehensive guide on cleaning business insurance, we will cover everything that you need to know to get covered for your cleaning business.

What is Cleaning Busines Insurance?

Cleaning business insurance is the backbone supporting the financial health of your business. Cleaning businesses suffer from several risks, such as employee illness, property damage, and bodily injury. To get covered against such risk, good cleaning business coverage is essential.

The professionals involved in serving janitorial services, commercial cleaning, or house cleaning businesses get benefits from the residential and commercial cleaning business. It protects them from the financial losses that can result from accidents, damages, or lawsuits. 

Recommended: Cleaning business insurance coverage help you stand financially strong, similarly, a good and top cleaning website helps you stand competitively strong.

Types of Cleaning Insurance Coverage 

Cleaning business insurance coverage typically includes various coverage that helps you get covered against different types of risks and liabilities that a cleaning business may face during its business operation.

Some of them are scripted here for your knowledge. Have a look:

• General liability insurance
• Commercial property insurance
• Commercial auto insurance 
• Professional liability insurance
• Worker’s compensation insurance
• Business income insurance
• Fidelity bonds

Wanna grow your already profit-making cleaning business? Here are some cleaning business ideas to take your business to the next level.

Factors Determining the Cost of Cleaning Business Insurance

Cleaning business insurance is an essential expense for your cleaning business. However, the cost of cleaning business insurance and bonding is different from business to business. It typically involves various factors in determining the cost. 

Here are the factors impacting the business insurance cost for cleaning companies

• Type of Coverage: The most basic and must-have insurance for your cleaning business is a general liability insurance policy. However, the cost and the complexities rise with comprehensive insurance plans, like professional liability or workers’ compensation insurance.

• Business size: Business size is directly linked with the insurance cost you will have to bear. The bigger the size of the company, the more will be the insurance cost involved. This is only because cleaning service businesses established on a large scale have more employees, various types of cleaning services to deliver, and undoubtedly a larger clientele. It ultimately increases the risk and exposure to potential claims.

• Location: The cleaning business insurance cost depends on the geographic location of your cleaning business. Basically, it gets categorized under two types: high-risk areas and low-risk areas. Certain areas having higher crime rates and are prone to frequent natural disasters can increase the risk of claims and fall under high-risk areas, automatically raising the insurance coverage cost.

• Limits of coverage: The level of coverage you want for your business affects the costs. For instance, if you are in need of high coverage levels, you need to pay higher premiums, and the low coverage levels will have lower premiums. However, the higher level coverage policies definitely provide better protection at the time of claim

• Employee count: The number of cleaning employees you are hiring determines the cost of your workers’ compensation insurance. The risk of claims rises along with the workforce, which may result in higher insurance rates.

Recommended: Read this blog post to know how to hire cleaning employees for your business.

Benefits of Cleaning Business Insurance

• Provides Against Financial Losses: In any case, if there is anything that goes wrong on a job, like damage to a client’s property or an injury to one of your employees, cleaning business insurance helps cover the costs associated with these incidents. Without insurance, these costs could be devasting and, importantly, put your business at risk.
• Boost Credibility: Do you know that having insurance coverage demostrate to potential clients that you take your business seriously and deliver quality service? It will give them peace of mind, making them more likely to choose your cleaning business over a competitor. 
• Customized Coverage: As we all know, every cleaning business is unique, and most insurance companies provide an array of coverage options that can be customized to your particular needs.
• Peace of Mind: Running a cleaning business is not as easy as it sounds, it can be stressful, so having insurance coverage helps alleviate some stress. With the right insurance coverage, you can give attention to running your business and know that you are protected if something goes wrong. 

With cleaning business insurance, you can easily protect your business from financial losses, comply with legal requirements, boost credibility with clients, customize your coverage, and more. 

Tips and Tricks on How to Choose the Right Insurance Coverage

Here are some tips and tricks on how to choose the right insurance coverage for your cleaning business:

• Assess Your Risks: Consider the specific risks that your cleaning business faces. For example, if you provide carpet cleaning services, there might be a risk of damaging a client’s property. Knowing your risks will help you to choose the right types and levels of insurance coverage.
• Research About Insurance Providers: Not all insurance providers are created equally, so it is necessary to find one specializing in cleaning business coverage. You can look for those providers that have work experience with similar businesses. 
• Consider Your Budget: You don’t want to skimp on insurance coverage and also don’t want to overspend and hurt your bottom line. So, you can consider your budget and look for different coverage options that provide a good balance of protection.
• Take a look at the Policy Details: Don’t just assume that all insurance policies are the same. Take the time to review the details of each policy, including the types of coverage included, the limits of coverage, and any exclusions or deductibles. Make sure you understand exactly what is covered and what isn’t.

Conclusion

Cleaning business insurance is a must for any cleaning business owner who is looking forward to protecting his business from any risks and losses. So, you can understand the types of coverage available, the factors that determine the cost of insurance, and the tips for understanding the right coverage.

With all the information, you can make an informed decision that fits your business needs and overall budget. Once you choose the best insurance for your cleaning business, it’s time to choose software that helps you save time and effort, making your daily operations like estimation, invoicing, payments, and reminders easy.

If you want to automate your estimation & invoicing operations, then InvoiceOwl is an all-in-one software for contractors like you. From cleaners to HVAC businesses and snow removal, many other businesses can use InvoiceOwl for their daily operations.