If your small business offers janitorial services, you may need one or more types of janitorial business insurance to protect your company, your equipment, and your staff.
Accidents happen. Someone might slip on a floor your employee recently mopped. Your office might be burglarized. An employee might get into a car accident while driving a company car. All of these are things that janitorial insurance can mitigate risk for.
What is Janitorial Insurance?
Janitorial insurance is an umbrella term for an insurance policy (or policies) that serves to protect your cleaning company. Like other types of insurance, you pay a monthly premium for coverage, then if you file a claim, you may need to pay a deductible before the insurer provides assistance in covering your expenses.
What Kind of Insurance Do I Need for a Janitorial Business?
Your janitorial service may need multiple types of insurance to protect it in different situations.
Let’s say that someone slipped on a waxed floor in one of the office buildings your company cleans, and now they’re suing you. Is this the end of your business? Not if you have commercial general liability insurance, which can protect you in the case of lawsuits or claims against your business. The coverage may help cover legal fees and expenses incurred in the case of a lawsuit.
The cleaning equipment you use in your business is an asset, and if it becomes damaged or stolen, you’ll have to replace it. But having property damage coverage ensures that if, for example, your top-of-the-line vacuum cleaner gets damaged or stolen, you are reimbursed by your insurance company.
If you have employees working as janitors for your company, you may be required by state laws to carry workers’ compensation insurance. If an employee were to get injured on the job, this policy would cover her medical bills and medical expenses.
If you use commercial vehicles to drive to jobs, you’ll need commercial auto insurance. Your personal car insurance policy may not cover accidents or bodily injury that occur when you or an employee is driving between jobs.
Business Owner’s Policy
One way to save money while still getting insurance coverage is to consider a business owner’s policy, also known as BOP, which combines general liability insurance coverage with property damage. Often, opting for a BOP policy is cheaper than buying both of these policies individually.
How Much Does Janitorial Insurance Cost?
What your cleaning business pays in insurance costs will depend on several factors. First, the size of the deductible will determine what you pay. The lower the deductible, the higher the premium.
The size of your business, the number of employees, and the services you offer may also factor into the price.
Each insurance company may have slightly different rates, so it’s wise to shop around. Also, some may offer discounts if you purchase several types of policies from the same company.
To give you a sense of how much janitorial insurance costs: the average business owner’s policy is around $520 a year for cleaning businesses, according to Insureon. Workers’ comp costs average $2.50 per $100 of payroll. And a general liability policy is about $575 a year.
How to Choose the Right Janitorial Insurance
Choosing the right cleaning business insurance is not a decision to take lightly. First, understand any required types of insurance you may need, such as workers’ compensation. Business clients may require a certificate of insurance before permitting you to clean on-site.
Next, consider what other risks your business has. Could you afford to replace cleaning equipment, or would property damage be a worthwhile investment? Liability coverage is a must-have, as well.
Also, consider how big a deductible you could afford, should you need to file a claim. Most businesses have small budgets, so a lower deductible (but higher premium) might make sense in the long run.
Finally, get recommendations for insurers if you can. You want to work with a company that offers great customer service, responds quickly to claims, and offers the types of coverage you need for your business. Consider also: do you want a dedicated, local insurance agent you can reach out to with questions, or are you okay with a self-serve website with a general 800 number for issues and concerns? The latter may be cheaper, so it’s worth keeping in mind.
Nav’s Verdict: Janitorial Insurance
Business owners who run cleaning services need to consider the risks they have in operating. Every janitorial company has these risks, and insurance can go a long way to put your mind at ease, knowing that, if the worst should happen, you will be okay.
Some final advice: don’t settle for the first quote you get. Gather multiple insurance quotes from several insurers, and don’t let price be the only deciding factor. Read reviews to see how the company treats customers, and ask questions of an agent to make your decision.