Cleaners and housekeepers provide an essential service, ensuring that homes and offices remain clean and organized. But like any other business, they face risks that can result in financial loss and damage their reputation. That’s why cleaners and housekeepers must have the right business insurance coverage to protect themselves and their clients. In this guide, we’ll cover everything you need to know about cleaners’ and housekeepers’ insurance requirements, so you can focus on keeping your business running smoothly and your clients satisfied.
Is Insurance Required?
You might wonder whether you need insurance if you’re a cleaner or housekeeper. Having insurance is highly recommended in most scenarios. Insurance can protect you and your clients from accidents or damages during your work. While it’s not legally required in most places, many clients will only work with cleaning professionals who have insurance.
For example, imagine you accidentally damage a client’s antique vase while cleaning their home. Without insurance, you would be personally responsible for covering the cost of the damages, which could potentially be thousands of dollars. However, if you have insurance, your policy could cover the cost of the damages, potentially saving you from a financial burden.
Insurance is also beneficial for homeowners and offices who hire cleaning professionals. If a cleaner is injured while working on the property and does not have insurance, the homeowner or office could be liable for any resulting medical expenses or lost wages. However, if the cleaner has insurance, their policy would cover these costs instead.
While insurance might not be legally required, it’s highly recommended for anyone working in the cleaning industry. Not only can it protect you from financial losses, but it can also give your clients peace of mind and make you a more desirable hire.
Types of Insurance for Cleaners and Housekeepers
As a cleaner or housekeeper, there are several types of insurance you can consider to protect yourself and your business.
General Liability Insurance is the most common type of insurance that covers injuries, damages, and accidents that may happen to your clients, their property, or even you. It can cover medical bills, legal costs, and property damage caused by your business.
Professional Liability Insurance, also known as Errors and Omissions (E&O) insurance, covers claims related to professional negligence or mistakes you or your staff make. This type of insurance is essential for cleaners and housekeepers who work with valuable and fragile items, such as antiques or fine art.
Workers’ Compensation Insurance is another option that can provide coverage for your employees if they get injured on the job. This type of insurance can cover medical expenses, lost wages, and legal costs if an employee files a lawsuit against your business.
Commercial Auto Insurance can protect your cleaning business if you use vehicles for business purposes. It covers liability and damage to the vehicle in case of an accident.
If you run a cleaning service, you may also want to consider Business Owner’s Policy (BOP). This type of insurance combines general liability, property, and business interruption insurance in one package. It can provide broader coverage at a lower cost than purchasing each type of insurance separately.
Ultimately, the type of insurance you need will depend on the size and scope of your cleaning business, the types of services you offer, and the level of risk involved. It’s essential to consult with a licensed insurance agent to discuss your specific needs and get a customized insurance plan that fits your business.
Additional Types of Insurance to Consider
Lost Key Insurance
Lost key insurance is essential for cleaners and housekeepers, especially in high-end homes or offices. It covers the cost of re-keying customer locks, installing new cylinders, and providing new master keys, which can cost thousands of dollars. It gives the customer and the cleaner peace of mind in case of a lost key.
Premises Liability Insurance
Premises liability insurance is crucial for cleaning businesses to cover injuries to workers, customers, or others at a job site. This type of insurance also covers any damages caused by the cleaner’s work. It is often bundled with other liability insurance.
Medical Expenses Insurance
Medical expenses insurance is another liability insurance that pays medical costs in case of injury or accident on the cleaner’s premises or because of their work in a customer’s home. This type of insurance is also often bundled with other liability insurance.
Commercial Automobile Insurance
Personal auto insurance may not cover business-related incidents if you use a vehicle for business purposes. Commercial automobile insurance covers you in case of financial loss from accidents involving your business vehicle. You may need commercial auto insurance if you own, lease, or rent a vehicle for business purposes.
Cyber Liability Insurance
Cyber liability insurance protects your business in case of online security and privacy breaches that expose essential information about your customers and your business. It’s crucial if your business processes prospective and new customers through website forms, maintains a customer portal on your website, or accepts online payments.
Surety Bonds
A surety bond, or janitorial bond, is insurance that protects your customer and pays them if you are found guilty of theft. Some bonds only cover you if you or your workers are convicted of theft. Bonds without a conviction clause may cost twice as much as a conviction clause bond. While there are different opinions on whether solo cleaners or partners need bonds, having one can put your customer’s mind at ease and insure them in cases of loss by theft or dishonesty.
Understanding Insurance Premiums and Taxes for Cleaners and Housekeepers
For new cleaners and housekeepers, paying insurance premiums in monthly installments can be a practical option. With premiums ranging from $50 to $85 per month, covering the cost with just one cleaning job is possible.
Once your cleaning business is more established, switching to an annual payment plan is advisable to save on monthly installment fees.
The good news is that your insurance premiums are tax-deductible as they are considered part of the cost of running a business by the IRS. So, keep track of your premium payments and consult with a tax professional to ensure you maximize your deductions.
Benefits of Insurance
Insurance may seem unnecessary when starting as a self-employed house cleaner or running a small cleaning business. However, investing in the right insurance policy can provide a wide range of benefits that make it worth the cost.
First, insurance protects you from financial loss due to unexpected events or accidents. Accidents happen, and without insurance, you could be held personally responsible for the costs of damages or injuries. With insurance, you can rest easy knowing you are financially protected in case of a mishap or lawsuit.
Insurance shows your customers that you take your business seriously and care about their well-being. Clients are more likely to trust an insured cleaning business, which can lead to more business and better rates.
In addition, insurance can also provide peace of mind for you and your employees. Cleaning can be a physically demanding job, and accidents happen, so having workers’ compensation insurance can help cover medical expenses and lost wages if someone gets injured on the job.
Having insurance can help you comply with legal and contractual requirements. Some clients or agencies may require proof of insurance before allowing you to work on their property, so having insurance can expand your opportunities for new business.
Overall, the benefits of having insurance for your cleaning business far outweigh the costs. It provides financial protection, improves your credibility with customers, and can give you and your employees peace of mind. Don’t wait until it’s too late – invest in insurance for your cleaning business today.
Tips When Shopping for Insurance for Your Cleaning Business
Here are some tips for people shopping for cleaning business insurance:
- Determine what coverage you need based on the nature of your business. This will help you find a policy that offers the right amount of protection.
- Research different insurance companies to compare their policies, prices, and customer reviews. This will help you find a reputable company with affordable premiums.
- Ask for referrals from other cleaning businesses in your network. This will help you better understand which insurance companies are trusted in your industry.
- Don’t be afraid to ask questions and clarify any doubts you may have about your coverage or policy terms. A good insurance agent will be happy to help you understand your options.
- Review your policy annually to ensure you still have the right coverage for your business. As your business grows and evolves, your insurance needs may change too.
Best Insurance Companies
Remember, this is subjective. What is best for one cleaning service might not be suitable for you. Here is a list of some of the top-rated insurance companies for the cleaning industry:
Next Insurance
Pros of Next Insurance:
With Next Insurance, you can easily add tools and equipment insurance to your general liability insurance policy. This coverage protects the tools your employees use on the job.
In addition to general liability insurance, Next also offers errors and omissions insurance, which can protect you if a client accuses you of negligence.
Cons of Next Insurance:
Unfortunately, Next does not sell janitorial service bonds.
Why we like Next Insurance:
Next Insurance makes it easy to get a quote and purchase a policy online within minutes. You can add an additional insured to your policy at no extra cost and access your certificate of insurance anytime. Next also boasts quick resolution times for claims, with many resolved within 48 hours.
Nationwide
Pros:
Nationwide offers business service bonds, a fidelity bond that can pay out if an employee steals from a cleaning business client.
If your cleaning business uses valuable equipment, you can add equipment breakdown coverage to a Nationwide BOP.
Cons:
You can get a quote online, but you’ll need to call your agent or Nationwide to get a copy of your insurance certificate and add an additional insured.
Why we like Nationwide:
Nationwide is a comprehensive commercial insurance provider that offers almost every type of policy, including fidelity bonds. They work with independent agents nationwide, providing personalized support as you choose the best coverage for your cleaning business.
Hiscox Insurance
Pros:
Hiscox offers an add-on to a BOP called commercial crime insurance, which can cover theft of client property up to $5,000.
You can buy a BOP online directly from Hiscox.
Cons:
While Hiscox doesn’t offer commercial auto insurance. You can get redirected to CyberPolicy, an online marketplace, to get quotes from other providers.
Why we like Hiscox:
Hiscox provides commercial crime insurance that you can purchase online, which can safeguard your cleaning business if an employee steals from a client or your company. Though you’ll need to look elsewhere for commercial auto insurance, Hiscox provides a quick and easy way to purchase a BOP.
Bottomline: Is Cleaning Business Insurance Worth Having?
The right insurance for your business will depend on your unique needs and preferences. However, one thing is for sure: accidents and unexpected events can happen to any business, and cleaning companies are no exception.
While it may be tempting to skip out on purchasing insurance to save some money, the potential costs of a liability claim or property damage could far exceed the price of your insurance policy. As the saying goes, “Better safe than sorry.” Investing in cleaning business insurance can provide peace of mind and protect your hard-earned assets in the long run. So, don’t hesitate to take the necessary steps to safeguard your business and employees.
