Cleaning Business Insurance: Costs, Types, and How to Get It

Do I need insurance for my cleaning business?

If you run a cleaning business that serves clients in their own homes, apartments, or commercial space, it’s highly likely that you can benefit from cleaning business insurance.

In fact, no matter what cleaning service you specialize in, cleaning insurance provides peace of mind and long-term protection against financial risks. That protection applies to cleaning services of all kinds, including:

• Residential or house cleaning
• Office and commercial cleaning
• Janitorial cleaning services
• Window cleaning
• Pressure washing
• Carpet cleaning
• Eco-cleaning services

Why is cleaning business insurance beneficial?

The cost of business insurance is an additional monthly or yearly expense, so it’s natural to wonder if it’s worthwhile. In most cases, the answer is undoubtedly yes.

Cleaning business insurance is extra protection for your business, and it offers the following benefits:

• Protection against the threat of lawsuits or legal action 
• Reassurance in the event of accidents that could knock your business plan off track
• Extra layers of safety and coverage for you and your employees

Many states require that cleaning companies have business insurance if they employ other people, use company vehicles, or own real estate.

Having company insurance also demonstrates to future clients that you’re serious about your work. Not only does it instill confidence and put people at ease, but upholding your insurance shows that you care about protecting their home or office, too.

Types of cleaning business insurance policies

The most important type of insurance for all cleaning professionals and business owners is called general liability insurance. Think about this policy like an umbrella—it safely covers you and your workers in case of accidents or property damage.

Depending on the structure of your business, the kind of equipment you use, or if you operate a company vehicle, you might also need more specific policies. 

Let’s look at the most common types of business insurance plans for cleaning companies.

General liability insurance

General liability insurance often covers physical damages and legal fees (assuming a client accuses your company of injury or property damage). General policies can cover three main types of incidents:

• Bodily injury means someone other than you or your employees gets hurt because of something connected to your business.
  
  Example: An office worker trips and twists an ankle on a wet floor after your crew has cleaned it.
  
• Administrative costs are covered by most general insurance policies. This amount goes toward any fee that’s associated with processing a claim.
  
  Example: You need to file a claim to meet your deductible, and there are fees associated with filing the right paperwork. You might also have to pay for clerk or courtroom fees in your jurisdiction.
  
• Property damage is covered when you (or by extension, your business) are to blame for causing harm to someone’s belongings.
  
  Example: General liability would protect you if your staff member accidentally broke a client’s window while power washing. 

READ MORE: Train cleaners to avoid injury and property damage

Tool and equipment insurance

You probably have a ton of supplies and cleaning business equipment that you take with you from job to job. If any of it gets stolen or damaged, you’d have to pay out of pocket to replace or repair your gear if it’s not insured.

Insuring your tools and equipment protects the gear you need for your business, especially if it’s damaged or stolen unexpectedly. This type of insurance is usually an addition to a general liability insurance policy. It’s often helpful if you provide specialized cleaning services that require you to own more expensive equipment.

Commercial auto insurance

If you own vehicles with titles attributed to your cleaning business, you’ll need commercial auto insurance. This is especially true if you distribute titled vehicles to employees and have those team members drive them while on the job.

If you’re a cleaner and you use your own personal vehicle to go to and from properties you’ll also need a commercial auto policy. (But remember that you can’t apply your personal car insurance to your company car).

If you ask your employees to drive their own cars for a job or to rent vehicles, you’ll need a separate policy called hired and non-owned auto insurance. This is a specific type of commercial auto coverage that helps pay for accidental damages.

Workers’ compensation insurance

If you employ other cleaners, worker’s comp is non-negotiable. This cleaning insurance policy helps to pay for medical fees for injuries and illnesses that happen to you or employees while they’re working on a job site. It also pays for lost wages if the employee has to miss work due to injury.

For example, if a heavy piece of furniture happens to fall on a cleaner’s leg while they’re performing regular duties, they may be out of work while the injury heals. Workers’ compensation can cover medical expenses (like X-rays or urgent care) and other associated costs. Plus, workers’ compensation is a legal requirement in 49 of 50 states (excluding Texas). 

READ MORE: What business insurance do I need?

How much does cleaning insurance cost?

When you set a budget for cleaning business insurance, remember that each policy is set based on several variables. For instance, cleaning insurance costs often depend on:

• What state you live or operate in
• What specific services you offer
• How many people you employ
• How much equipment you own
• If you own or operate company vehicles

Monthly costs will also be higher if you’re hoping to get a higher coverage maximum. For example, expect to pay a higher monthly cost if you want your policy to pay $1 million for damages, versus if you only want $250k in coverage.

Even though there are many differences, current industry data and guidance points to the following ballparks:

How do I get cleaning insurance? 

Now that you have a general understanding of what cleaning business insurance is (and how it protects your company), you might be wondering how to get started.

Follow these five simple steps to get insured quickly and gain peace of mind:

1. Pick your policy needs – Even though general liability is a safe bet, think about your specific business model, your equipment, and your team. Based on these factors, choose which policies you need to secure first.
2. Conduct general insurance provider research – There are plenty of well-known players in the insurance space, but smaller or business-specific insurers might have local representatives and competitive rates, too. Conduct research online or by meeting with reps in person to start gathering information.
3. Assemble your business details – Before you secure a policy, you’ll need to have details on a few basic business details. As you meet with insurers, you could be asked to list your supplies and equipment or describe your employment processes. Make sure this information is handy.
4. Request quotes – Once you’ve chosen a few providers, input your info and start getting quotes. When using online forms on insurance websites, the process for each quote can take less than 10 minutes. Expect to be asked for an email address or phone number for someone to personally reach out. 
5. Purchase one or more policies – Review policy paperwork carefully, and make sure you understand the “fine print.” This includes knowing exactly what your monthly premium is, the deductible amount, and any non-covered incidents. Having a complete understanding of your policy (before you sign) can prevent unexpected surprises in the future.