What Insurance Do I Need for My Home Cleaning Business?
Starting a home cleaning business? Congratulations! Now you need to think about insurance.
As with any business, you’ll need to protect yourself, your employees, and your clients with the right cleaning business insurance.
Here are the various types of insurance you need to consider when starting your own home cleaning business, whether you are working solo or have a team.
Commercial general liability (CGL) insurance
General liability insurance is fundamental for any business, even if you’re the sole employee and owner all in one. Commercial general liability insurance provides coverage for third-party bodily injury, property damage, and personal injury claims, all of which could happen at any time.
For instance, if a client trips over your cleaning equipment and injures themselves, or if you accidentally damage a client's property while cleaning, this type of insurance will help cover legal expenses, medical bills, and repair costs.
Without it, you’re putting your business (and potentially your personal finances) at severe risk.
It wouldn’t be unusual for you have $2 million in CGL insurance coverage for your cleaning business.
Professional liability insurance
Also known as errors and omissions (E&O) insurance, professional liability insurance protects your home cleaning business against claims of negligence, errors, or omissions in your services.
If a client alleges that your cleaning services caused damage to their property or failed to meet their expectations, professional liability insurance can cover legal fees, settlements, or judgments.
Commercial auto insurance
If you or your employees are planning on using a vehicle to travel to clients' homes, you'll need commercial auto insurance.
Personal auto insurance policies usually exclude coverage for vehicles used for business activities. Commercial auto insurance provides protection in case of accidents, vehicle damage, and liability claims arising from business-related driving. If you’re not sure whether you can use your personal vehicle insurance for your new business, chat with one of our insurance experts for personalized insights.
Tools and equipment insurance
It replaces, or repairs damaged, stolen, or lost equipment and tools, accessories, or other property that you use in your work as a cleaner.
Anything valued at less than $1,500 is considered a tool and anything above that limit is considered equipment.
This type of insurance can also be called equipment floater insurance instead of equipment and tools insurance.
Bonding insurance
Being bonded can enhance your credibility and reassure clients that they're protected against potential losses caused by employee theft or dishonesty, which can ultimately boost your profitability.
A fidelity bond or a surety bond is a form of insurance that compensates clients if an employee steals or damages property while on the job. While bonding insurance is not always mandatory, it can be a valuable investment in building trust with your clients.
How much does cleaning business insurance cost?
How much you will pay will depend upon:
- Number of employees
- Years of experience
- Types service provided (commercial or residential)
- Your business’s location
- The tools and equipment you own and use
- Any past claims
- Past and project revenue
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