Cleaning business insurance: What it covers and what it costs

What insurance does a cleaning business need?

Many commercial insurance policies cover cleaning businesses, including:

General liability insurance

General liability insurance covers claims for bodily injury, property damage and advertising injury. This policy covers settlements or judgments, your legal fees and court costs.

Workers’ compensation insurance

Workers’ compensation insurance covers employees' medical treatment and partial lost wages if they get sick or injured at work. This policy is required in most states for cleaning businesses that have at least one employee on payroll.

Commercial auto insurance

Commercial auto insurance covers a driver’s financial responsibilities if they cause an accident while behind the wheel of a business-owned or leased vehicle. Like personal car insurance, business auto insurance is legally required in nearly every state.

Business owner’s policy

A business owner’s policy (BOP) is a bundle that combines general liability insurance and commercial property insurance at a discounted rate. Commercial property insurance covers cleaning equipment that gets damaged or destroyed, such as vacuums, mops and chemicals.

Umbrella insurance

Umbrella insurance provides excess liability insurance above what your underlying liability insurance policies offer (usually in $1 million increments). It provides additional financial protection against liability claims if you accidentally damage a client’s property or cause a client injury.

A cleaning business might want to think about a janitorial bond. If one of your employees steals from a client’s home or commits another dishonest act, a janitorial bond will reimburse the client for their losses.

How much does cleaning insurance cost by month and year?

Here’s a look at the average cost of cleaning insurance by policy type, based on rate data from small business insurance broker Insureon:

Factors that affect cleaning business insurance premiums

The cost of cleaning business insurance depends on a variety of factors, including:

• Location
• Number of employees
• Revenue
• Claims history
• Policy type
• Coverage limits
• Deductibles
• Insurance company

Small business insurance companies that serve cleaning businesses

Here are just some of the insurance carriers that sell coverage to cleaners:

• The Hartford: Cleaning businesses can purchase general liability insurance, commercial auto insurance, umbrella insurance and other policies through The Hartford. The company, one of the largest commercial insurance providers, also sells coverage to independent contractors who work as cleaners for a larger company.
• NEXT: NEXT is a digital insurance company that insures many different types of cleaning businesses. You can get an instant rate quote online and purchase coverage in 10 minutes. NEXT also offers up to 25% off in discounts, including a 10% discount for bundling more than one policy.
• Progressive: Cleaning businesses can get insured through the Progressive Advantage Business Program. The company offers policies to protect cleaning business owners, like general liability insurance and workers’ compensation. Progressive also has a good selection of discounts for cleaners who purchase commercial car insurance.
• Thimble: Thimble offers flexible insurance options for cleaning businesses. You can purchase coverage by the hour, day or month, ideal for cleaners who don’t work full-time. You can purchase a policy through Thimble’s mobile app, online or over the phone with an agent.

How to compare cleaning business insurance companies to get the best coverage

There are dozens of insurance companies that sell coverage for cleaning businesses. However, not all insurers are created equal. To find the best cleaning business insurance carrier, it’s important to compare multiple companies. Follow these steps to find the best insurance company for your business:

1. Coverage options: Every cleaning business has different insurance requirements. When comparing companies, look at the coverage options available and choose an insurer that offers the types and amounts of coverage you need based on your potential risks.
2. Third-party ratings: Third-party ratings can help you better understand an insurer’s customer service reputation and overall customer satisfaction. It’s a good idea to check company ratings from reputable industry organizations, like J.D. Power and the National Association of Insurance Commissioners (NAIC).
3. Financial strength: Choose an insurance company that has an excellent or superior financial strength rating from AM Best. Financially stable insurers are able to meet policyholder obligations and pay claims. Companies that aren’t financially strong are at a higher risk of bankruptcy and may have a harder time paying claims.
4. Online tools: If you prefer to handle your insurance needs online, look for insurance companies that offer online tools, such as online policy management, online claims, live chat and risk management resources.
5. Cost: Before you purchase business insurance, get personalized rate quotes from a few different carriers. This will help you find the cheapest premium for the type and amount of coverage you want.

How to get the best coverage for your small business

Use these strategies to get the best insurance coverage for your business:

1. Consider your unique risks: Think about the risks that your business faces based on your industry, services, location and number of employees. Purchase policies that cover the potential risks you face, and choose coverage limits that offer adequate financial protection.
2. Find out what coverages are required: Your business might be required to carry certain types of insurance to satisfy local laws, client requirements or lease agreements. Make sure to get the policies you need and provide certificates of insurance to relevant stakeholders, like your landlord.
3. Read the fine print of your policy: Every commercial insurance policy has different exclusions. It’s important to read the fine print of your policy so you understand what is and isn’t covered. You might need to purchase other policies or add endorsements to fill gaps in your basic coverage.
4. Compare quotes: The cost of business insurance depends on many factors, and some policy types are more expensive than others. Before you purchase any insurance policy, compare quotes from at least a few different insurance companies to find the best coverage at the most affordable rate.

What our expert says

Q: What’s one of the big benefits of having the right small business insurance?

Brian White Vice President of Product Strategy at specialty insurer AmTrust Financial

"The right insurance policies enable stability and peace of mind, allowing business owners to focus on what they are most passionate about and do best – growing and running their business – without fearing how these unexpected events could impact them financially."