General liability insurance, workers’ compensation insurance, property insurance, and janitorial bonds keep your cleaning business safe from financial liabilities. Learn more about the different types of insurance you need for your business to protect you and your profits.
You may be thinking about setting up a cleaning business of a smaller size or are looking to expand and get caught up in all the activities before you are ready to work efficiently. What’s your particular business plan? How will it be organized? Do you have completed your small business loan documentation? Insurance could be far from your mind with everything to get reviewed.
Appropriate small business insurance will give you financial stability and peace of mind for your cleaning business, whether you are a lone proprietor or have a group of employees.
Why Do You Require Insurance for Your Cleaning Business?
It is the most straightforward way to start a business for new entrepreneurs. Most likely, you’ve begun or plan to start your cleaning house or janitorial company in a sole proprietorship. That means that any losses from your business get credited to your bank account.
For example, imagine that sues your company due to a slip and fall accident, and the court orders that you compensate thousands of dollars for damages and legal costs. Without small business insurance, you’d need to cover this from your pockets.
Insurance Can Help You Promote Your Company
Insurance goes beyond financial security. It also strengthens the security of your business. Alongside the insurance aspect, janitorial bonds can effectively show your clients confidence in the company with their property.
Let’s review the different kinds of cleaning service insurance for businesses that can safeguard your business at any point of its growth:
General Liability Insurance: Slip-and-Fall Lifeline
It is also known as “slip-and-fall insurance” general liability insurance can be essential for any small cleaning company.
If you work in a profession, the danger of falls, trips, and slips is authentic. If a client’s guest falls on your newly waxed floors, the client could get accused of causing damage. Then, the customer could transfer the blame onto your business’s janitorial services.
That’s why the general liability insurance policy can be helpful. Also called public, commercial liability, this policy protects your company if it is in the process of being sued for:
- Injury to a person’s bodily part caused by a third party
- Property damage at a job site
- Advertising Injuries
Business Owner’s Policy: Because Two Policies Are Superior to One
You’ve invested a significant amount of capital into your company already.
You’ve likely bought commercial equipment like buffers, vacuum cleaners, personal protection equipment, and cleaning supplies. You may have purchased or hired a commercial office.
It implies that you have investments in physical assets that require protection. It is the place where commercial property insurance comes in.
Insurance for commercial property will repair or replace the equipment you have insured to clean when they become damaged or destroyed because of the following:
- Weather severe
Property insurance can get purchased by itself, and you can bundle your general liability and property insurance in a business owner’s plan (BOP). If you bundle these two insurances in a BOP, you’ll be able to reduce your insurance cost of premiums.
Workers Compensation Insurance: Provide Care for Employees and Adhere to the State’s Laws
The risk of injuries is common among cleaning workers. You must ensure your employees receive the medical attention they require.
Cleaning companies get faced with various risks that include:
- Biology Inorganic: Bacteria, diseases, and mold
- Chemical: Cleaning solutions
- Physical: Repetitive motions, moving equipment, slips, and falls accidents
With workers’ compensation insurance, you can guarantee that your employees’ medical expenses won’t come out of your pocket. It contributes to the following:
- Workplace injury lawsuits
- Costs for medical treatment and wages for replacement related to workplace accidents
The majority of states require that you have this insurance, even if you have one employee.
Suppose you’re a sole proprietor; workers’ compensation can provide a financial cushion if you are injured while working and cannot return to work. Your health insurance plan might not cover a workplace accident; however, workers’ compensation insurance will help pay for the medical expenses and make up a portion of your lost income.
Some companies require that their contractors be covered by this insurance when they work in more risky areas, such as construction or roofing.
Commercial Auto Insurance: Required in the Majority of States
Commercial auto insurance is similar to your auto insurance, but it’s specifically for vehicles owned by your company. Most states require it.
If you or your employees are the cause of accidents while operating an employee-owned vehicle, the repair or legal costs and injuries can cost you a lot. Commercial auto insurance can help cover these expenses in addition to the loss of your vehicle and damages caused by circumstances like vandalism and extreme weather.
Hired and Non-Owned Auto Insurance: While Driving a Personal Vehicle While at Work
Suppose you or your employees utilize your personal, leased or rented vehicles for work. To be financially secure, you’ll require hired and non-owned car insurance (HNOA).
HNOA insurance provides financial protection against the costs of damage due to an accident, such as medical and legal costs. It also covers the vehicles your company could lease and your car if used to work.
Your auto insurance policy will cover you while driving toward work. It does not protect you from working. You’ll need HNOA coverage if you or an employee is injured while performing work-related tasks, such as getting supplies, to be financially covered.
Janitorial Bond: A Proof of the Reliability of Your Cleaning Business
Janitorial bonds demonstrate to potential clients that you get insured by an insurance company that witnesses your work. It’s an excellent way to build trust with potential clients.
If potential clients can see” bonded ” when they visit your site or on your marketing materials, they get assured that if your employee gets found to have stolen or damaged something, the bond company will be able to cover the replacement cost.
Brokers at Commercial Insurance Ottawa are at many years in the business. These people are familiar with the specifics of your operations and can advise you on the right kind of coverage. Ask for an estimate by calling (613) 454-5640 or emailing firstname.lastname@example.org.