While in the process of starting your cleaning business, you need to consider if you have the right types of house cleaning business insurance for your company. The most common types of insurance for a house cleaning company are liability, bonding, workers compensation, property damage, and business vehicle insurance.
Carrying the right types of insurance is not only required by law but is important in establishing your business as a credible and professional cleaning service. It will help to assure your customers that you have their best interests in mind.
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Types of Cleaning Business Insurance
Liability Insurance
Liability insurance coverage protects your business from someone who claims to have been hurt or injured as a result of your business. It also protects you in the event that there is property damage caused by your business.
Liability insurance will pay damages to third parties for bodily injury and property damage up to the limits of your policy if your business is held legally liable. It will also pay legal fees and medical bills for those injured as a result of your business.
House Cleaning Bonding Insurance
Bonding Insurance is commonly referred to as a Janitorial Service Bond, Employee Dishonesty Bond, or Business Service Bond. Bonding Insurance protects your business in the event of a fraudulent or dishonest act committed by one of your employees while at a customers home. The bond will pay third parties if your business is held legally liable up to your bond amount.
Workers Compensation Insurance
Workers Compensation Insurance will help cover medical expenses and a portion of lost wages to an employee who is hurt on the job.
Property Damage Insurance
Property damage insurance compensates your business for property that is lost or damaged due to common perils such as theft or fire.
Business Vehicle Insurance
Business Vehicle Insurance provides coverage for vehicles that are owned and used by your cleaning company. This insurance helps to pay any costs for bodily injury or property damage to a third party for which your business is held legally liable up to the limits on your policy. Your insurance company may also pay to repair or replace your vehicles in the event damage was caused by accidents, theft, or flooding.
Contact Your Local Insurance Agent
Contact your local insurance agent to determine what types of business insurance and coverage you will need.
Just Getting Started? Click here to get the How to Start a Cleaning Business PDF Guide.
Josh Winningham
Josh Winningham is the founder of Cleaning Business Academy and All Clean Home.
My friend And I just started a cleaning service. Do we need a business license and insurance? And how much does this stuff usually run in cost?
Hi Jessica, It all depends where you live, how many employees you have, and if you are in an office or working out of your home. It’s really not too much. For me I paid $14 to register the business, $50 a year for the business permit, $40 per month for liability insurance, and $17 per month for bonding.
Can you refer me to an insurance company or please leave me some contact info.
Hi Sujith, I personally use Erie insurance through a local business insurance broker. I would look for a local business insurance broker in your area so they can find you the best rates and coverages.