How Much Does It Cost To Insure a Cleaning Business

Residential or house cleaning service clients often ask for assurance in the form of a bond.

Typically, janitorial bonds come at an affordable price, with a median monthly cost of approximately $8.

A significant majority, 78% to be precise, of cleaning businesses invest between $100 and $150 per year for this coverage.

How much does it cost to insure a cleaning business
The cost of insuring a cleaning business depends on several factors such as the size of the business, the type of cleaning services offered, the location of the business, and the number of employees: Photo source (Insureon)

What insurance does a cleaning business need?

Cleaners Must Have Liability Insurance Coverage – Allocating liability coverage is vital for all cleaners, whether they are domestic or commercial.

Public liability insurance protects your company from lawsuits brought by third parties who accuse you of being negligent.

For instance, let’s say you just mopped the floor at a commercial client’s office.

Do cleaners need to be insured?

California mandates workers’ compensation insurance for companies with employees to meet state requirements.

This insurance covers on-the-job accidents, including lost wages and medical bills.

Clients may also demand a janitorial bond to fulfill contract terms.

Do I need liability insurance for my cleaning business?

Cleaners Must Have Liability Insurance Coverage – Allocating liability coverage is vital for all cleaners, whether they are domestic or commercial.

Public liability insurance protects your company from lawsuits brought by third parties who accuse you of being negligent.

How much should a cleaning company be bonded for?

Surety bonds for your cleaning business can cost anywhere from $125 to 650 dollars, and they can protect your client from stolen goods worth anywhere from $10,000 to $100,000.

How much does it cost to be bonded and insured?

Different types of bonds, like fidelity bonds, typically entail a payment determined by a percentage of the desired coverage amount.

This percentage usually falls within the range of 0.5% to 20% of the required sum.

Contract bonds also adhere to this principle. To illustrate, if you seek a $50,000 bond, the initial cost is generally approximately $500.

Is it necessary for a cleaning service to be bonded?

When looking for a cleaning service, it’s crucial to choose one that possesses bonding, licensing, and insurance.

Choosing a bonded house cleaning company is not only a prudent measure for safeguarding your belongings but also provides protection against liability for loss or damage to you and your employees.

How much does it cost to insure a cleaning business?

The insurance cost for a small housekeeping business ranges from $350 to $8,000 annually for general liability.

If the company also required workers’ compensation, the cost could increase by $2,000 or more.

What kind of insurance do I need for a cleaning company?

Cleaners typically need public liability insurance, especially if employed by real estate agencies, property managers, shopping centers, or commercial building managers.

Do I need insurance for my cleaning lady?

House cleaners must carry liability insurance. You will likely need to maintain a Public Liability policy before working with clients to safeguard them against unforeseen damage.

How much does it cost to get liability insurance for small business?

Policy Median cost Average cost
General liability $42/month $65/month
Business owner’s policy (BOP) $53/month $99/month
Professional liability (E&O) $59/month $97/month
Workers’ compensation $47/month $111/month
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