Running a house cleaning business comes with its fair share of risks, from accidental property damage to employee injuries. House cleaning insurance provides essential protection, helping you stay financially secure and legally compliant.
Small cleaning businesses typically spend between $350 and $2,400 annually on insurance. Having the right insurance safeguards your reputation, protects your finances, and gives your clients confidence in your services. Let’s dive deeper into what this insurance entails and what influences its cost.
What is House Cleaning Insurance?
House cleaning insurance is a form of business insurance tailored to the needs of cleaning service providers. It covers a range of risks, such as property damage, bodily injuries, and employee-related claims. This insurance is crucial for protecting your business assets, maintaining credibility with clients, and meeting legal requirements.
Average Costs of House Cleaning Insurance
For small cleaning businesses, the average monthly costs of essential insurance policies are as follows:
- General liability insurance: $30–$50
- Workers’ compensation insurance: $70–$200
- Commercial property insurance: $40–$80
- Business owner’s policy (BOP): $50–$150
- Commercial auto insurance: $115–$145
- Commercial umbrella insurance: $16–$85
- Janitorial bonds: $8–$42
Annual costs typically range from $350 to $4,500, depending on the coverage you select. The combination of policies you choose can influence your overall premium.
Types of House Cleaning Insurance
General Liability Insurance
For general liability insurance, house cleaning businesses usually pay between $30 and $50 each month, or $350 to $600 annually.
This policy helps cover costs associated with injuries to third parties, property damage, and legal fees. For instance, if a client slips on a freshly mopped floor, general liability insurance can handle medical costs and any resulting legal claims.
Workers’ compensation insurance
For businesses that have employees, the typical cost of workers’ compensation insurance ranges from $70 to $200 per month, or $840 to $2,400 per year.
Workers’ compensation insurance pays for medical costs and lost wages for employees who are injured while working. For example, if a cleaner sustains a back injury while moving furniture, this insurance will cover the costs. In several states, it is a legal requirement for businesses with employees to carry this coverage.
Commercial property insurance
The average cost for commercial property insurance is around $40 to $80 per month, or $480 to $960 annually.
This policy protects your business’s physical assets, such as cleaning supplies, tools, and office spaces. If a fire damages your equipment or a theft occurs, commercial property insurance ensures you can recover without a significant financial loss.
Business owner’s policy (BOP)
A business owner’s policy combines general liability and commercial property insurance into one comprehensive plan. On average, it costs between $50 and $150 per month, or $600 to $1,800 per year.
Opting for a BOP can save you money compared to purchasing these policies individually. This is an excellent choice for small to medium-sized cleaning businesses looking for comprehensive coverage.
Tools and Equipment Insurance
Tools and equipment insurance is crucial for house cleaning businesses, protecting valuable assets like vacuums and specialty tools from theft, damage, or loss. This coverage ensures quick recovery by covering repair or replacement costs, minimizing disruptions, and enhancing credibility with clients.
Insurance costs typically range from $300 to $700 annually, depending on your business size and coverage needs. Reliable providers like Hiscox, NEXT Insurance, The Hartford, and Progressive Commercial offer tailored policies to suit your requirements. Investing in this insurance safeguards your business’s future and ensures seamless operations.
Commercial Umbrella Insurance
Commercial umbrella insurance expands the coverage of your existing liability policies, offering additional protection. This is particularly useful for house cleaning businesses working with high-value clients or in areas where the risk of legal claims is higher.
Premiums for commercial umbrella insurance typically range from $200 to $1,000 annually, depending on the size of your business and the amount of coverage you choose. For instance, if your general liability policy has a limit of $1 million and a claim exceeds that amount, the umbrella insurance will cover the remaining costs.
This policy is ideal for small businesses that want to safeguard against rare but catastrophic claims that could otherwise deplete their resources.
Janitorial Bonds
Janitorial bonds, also known as surety bonds, offer financial protection in case of theft or dishonest actions committed by your employees. These bonds assure your clients that they will be compensated if an employee steals money or property while on the job.
The cost of janitorial bonds is relatively affordable, ranging from $100 to $500 annually, depending on the size of your workforce and the bond amount. Most clients, especially in commercial cleaning, prefer to work with bonded companies, as it guarantees an added level of trust and security.
Obtaining janitorial bonds can enhance your reputation, giving your business a competitive edge while protecting your clients’ assets.
Factors Affecting House Cleaning Insurance Costs
Insurance costs depend on various factors.
- Business size and revenue
Larger businesses with higher revenue generally face higher premiums due to greater risk exposure. - Number of employees
Businesses with more employees pay higher premiums because there is an increased risk of workplace injuries or claims. - Location and coverage area
Operating in urban or high-risk areas can increase your insurance costs, as these areas tend to have more claims. - Type of cleaning services offered
If your services include high-risk tasks like window cleaning or mold removal, your premiums may be higher due to the added risk involved.
Benefits and Risks Covered by House Cleaning Insurance
House cleaning insurance is a valuable asset for any cleaning business, offering both protection and credibility. It provides financial security by covering unexpected costs, such as property damage, medical expenses, and legal fees, safeguarding your business from significant financial setbacks.
Additionally, having insurance enhances your credibility with clients, as many prefer to hire insured cleaning businesses that demonstrate professionalism and reliability. In some cases, insurance is also a legal requirement, as many states and contracts mandate specific policies like workers’ compensation or liability coverage for legal compliance.
Beyond its benefits, cleaning insurance protects against several potential risks. These include property damage caused during cleaning, bodily injuries to clients or third parties, and legal disputes that may arise from claims or lawsuits against your business. By addressing these risks, cleaning insurance ensures your operations run smoothly while providing peace of mind for both you and your clients.
How to Save Money on House Cleaning Insurance
Saving on insurance doesn’t mean compromising on coverage. Consider the following tips:
- Bundle policies
Combining general liability and property insurance into a business owner’s policy can reduce your overall costs. - Maintain a clean claims history
Avoid filing minor claims to keep your premiums low over time. - Choose higher deductibles
Choosing a higher deductible may reduce your monthly premium, but make sure you can cover the out-of-pocket expenses if a claim is filed.
A Step-by-Step Guide to Choosing Business Insurance
When choosing the right insurance for your cleaning business, keep these factors in mind:
- Evaluate your risks: Identify the specific risks associated with your cleaning services, such as handling hazardous materials or working in high-risk environments.
- Compare providers: Get quotes from multiple insurers to find the best combination of coverage and affordability.
- Consult a broker: An insurance broker can guide you in choosing policies tailored to your business needs.
Conclusion
House cleaning insurance is an essential investment in the long-term success and stability of your business. By providing protection against financial risks such as property damage, accidents, or employee injuries, it ensures that unforeseen events don’t derail your operations.
Additionally, having proper insurance helps build trust with clients, demonstrating professionalism and reliability, while also ensuring compliance with legal requirements. With the right coverage in place, you can focus on growing your business confidently, knowing you’re prepared for any challenges that may arise.
FAQs
- What is the typical cost of insurance for house cleaning businesses?
On average, small cleaning businesses spend $30–$50 each month for general liability insurance and $70–$200 per month for workers’ compensation insurance. - Is house cleaning insurance required?
In many cases, yes. For instance, if you employ workers, workers’ compensation insurance is a legal requirement. - What does house cleaning insurance cover?
It covers risks like property damage, third-party injuries, and legal disputes. - How can I lower my insurance premiums?
You can save by bundling policies, maintaining a clean claims history, and choosing higher deductibles. - What insurance is required for a cleaning business?
At a minimum, general liability insurance is essential. Additionally, if you employ staff, workers’ compensation coverage is advisable.
