Insurance

Unfortunately many things can happen when you have employees, chemicals, high speed equipment and wet floors. There can be accusations of theft, clients slipping on wet floors or machines crashing into walls to name a few of the risk a cleaning company may face.

You will need to purchase the appropriate insurance policies to avoid financial liabilities if your business is sued.

General Liability Insurance

This policy protects your cleaning business if you or your employee cause an injury to a third party or damage a clients property. You can also add lost key coverage to the plan. Lost keys can cause the entire building to be re-keyed.

The cost of General Liability Insurance can be $300 - over $1000 depending on the coverage. Some of you larger clients may want you to increase your coverage in order to agree to a contract. They may also ask to be named additional insured on the certificate. This step ensures that the client receives added protection in the event of, among other things, a bodily injury or property damage claim resulting from a jobsite accident. By being named an additional insured on the contractors GL policy, the client is protected from legal costs and judgments, per the terms and limits of the policy form and the provisions of the owner-contractor agreement.

Your General Liability certificate should be included in all proposals or contracts. In most cases the client will want a copy.

Workers' Compensation Insurance

If you don't have any employees Workers Compensation Insurance is not needed. However it is required in almost every state if you have employees. It covers medical costs and lost wages for work-related injuries and illnesses.

The amount you pay for workers’ compensation is a specific rate based on every $100 of your business’s payroll. Your premium is determined by the type of work done by your employees (classification rate), your experience modification rate (claims history), and your payroll (per $100).

Janitorial Surety Bond

Janitorial bonds are a type of surety bond that protect your clients from financial loss. They can provide reimbursement if an employee steals money or property from a client. Unlike insurance your bond carrier will expect reimbursement when it pays a claim.

Janitorial bonds are not a requirement to operate your business. However, a client may require it in order to agree to a contract. The cost will be $100 - $150 per year.