Do I Need Insurance for My Home Cleaning Business?
If you’re starting your own home cleaning business, you’ll need to think about business insurance to protect yourself. Accidents and mishaps can be part of your job.
What happens if you break some pieces in a client’s prized dish collection or your client trips over your bucket and is injured?
Whether you are working alone or have a team, you need to consider the following business insurance coverages for your home cleaning business:
Commercial general liability (CGL) insurance
Commercial general liability insurance provides coverage for third-party bodily injury (client), property damage (client’s property), 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 this type of insurance, you would have to pay any legal damages out of your own pocket. Can you afford that?
It wouldn’t be unusual for you to have $2 million in CGL insurance coverage for your home cleaning business.
Professional liability insurance
This type of insurance is also known as errors and omissions (E&O) insurance and it protects your home cleaning business against claims of negligence, errors, or omissions in your services.
If a client alleges that your cleaning services failed to meet their expectations, professional liability insurance can cover legal fees, settlements, or judgments.
Commercial auto insurance
If you are planning on using a vehicle to travel to clients' homes, you'll need commercial auto coverage. Your personal car insurance won’t cover you on the job, should you be involved in an accident.
Commercial car insurance provides protection in case of accidents, vehicle damage, and liability claims arising from business-related driving.
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 increase 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 cleaning at clients’ residences. While bonding insurance is not always mandatory, it can build trust with your clients.
How much does cleaning business insurance cost?
It depends on:
- 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 projected revenues
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Western Coast Insurance Services Ltd. is a wholly owned division of Western Financial Group Ltd. Insurance products are underwritten by certain licensed insurance companies and are only available throughout British Columbia, Canada.