Cleaning and janitorial service businesses work primarily in the homes and businesses of their customers. This involves daily driving to and from workplaces, employees working in the homes of customers, and the daily use of cleaning and chemical agents that can be toxic.
Thus, cleaning and janitorial businesses are exposed to high liability risks. Nevertheless, many owners of janitorial companies do not feel the need for insurance to cover the risks inherent in their work. This short-sighted attitude that can make the difference between a cleaning service that is in business for years and a short-lived operation.
What are some of the risks janitorial services should cover?Here are some scenarios:
- A person slips and falls in your work area
- Your employee slips and falls while at worker’s
- Damage was done to client property
- Company vehicle involved in accident
- Damage to your equipment renders it unusable for days
- Employee theft
None of these mishaps can ruin your business if you consult with an experienced insurance agent. Bolt Insurance Agency is just one of several agencies that have extensive experience advising business owners on how to protect their cleaning businesses against these and similar claims.
Recommended insurance coverage includes:
- General liability insurance – an essential insurance coverage any small or large business needs to guard against ruinous liability claims. Its property and injury protection applies to your company and to your workers while on a job. It also gives wide protection against claims from customers, vendors, and employees.
- Workers Compensation insurance – is mandatory in many states even for small businesses with only one or more employees. This insurance covers expenses for medical and missed wages for workers that were injured in the course of their employment.
- Commercial auto insurance – for your business autos and trucks. Your private auto insurance may not cover commercial cars.
- Property coverage – is essential for any cleaning, maid, and janitorial business. This insurance protects a company from losses because of fire, power surges, theft, and other losses specified in the insurance policy. It is an important insurance for janitorial businesses that work from home, own commercial real estate, and own expensive cleaning equipment.
- Umbrella Insurance – covers any differences between the policy limits of special insurance policies and the actual damages up to the policy limits of the umbrella insurance. One million dollars is a common limit for umbrella insurance.
Additional Janitorial Insurance may be included in the insurance package your agent recommended or it can be purchased separately.
These are some additional coverages:
- Voluntary Property Damage – covers damage to or loss of your property and equipment. It also protects you from liability for loss or damage of a client’s property without actual legal liability. Limits and exclusions can be quite strict. Therefore, it is mandatory to discuss these policies with an insurance agent.
- Fire Legal liability – covers you if you or your employees accidentally set fire to rented premises. Some general liability policies include this type of insurance.