Accidents happen, right? I know you don’t really want to admit it….But they do. That is why you carry car insurance, health insurance and house insurance. So why would you not carry insurance for your cleaning business?
You could get into a car accident on the way to a clients home. An employee could spill a harsh cleaner on a clients wood floor and ruin it. Or they could be stepping on a ladder dusting a high area and fall. You could be vacuuming and back up into a table holding a very expensive vase that cost more than your car!
If you don’t carry the right kind of insurance, you could be financially responsible for injury or property damage caused by your cleaning service. Here is a list of the different types of insurances you should carry and how they protect your client, your employees and yourself.
TYPES OF INSURANCE FOR YOUR CLEANING BUSINESS
If you are driving your own car, make sure you contact your current insurance provider. You will want to verify that you are covered traveling between cleaning jobs. Not all personal car insurance will cover accidents which happen during business operations.
If you are purchasing company cars and having employees driving, you will 100% need to obtain coverage for the vehicle and for your employee’s. Having a business specific car insurance coverage will help to cover the costs of any damage your business is found to be liable for during a car accident, up to your plans limits.
GENERAL LIABILITY INSURANCE
Business liability insurance is coverage that protects your companies assets and pays for liabilities incurred because of business operations. What that means for you as a Cleaning Business Owner is it will cover costs for damage you or your employees caused while cleaning your clients house, up to your plans limits. You will want it if something breaks or is damaged.
When cleaning multiple homes a day you and your employees will come across many different surfaces and valuables. Using the wrong cleaner or materials can damage your clients property. You will not want to be in a situation that your business is liable for damage and you can not afford to fix it. You will certainly loose that client. But on top of that they will tell all of their friends, co-workers and family members not to use your service.
Your clients will understand that accidents happen. But what will make you more credible and stand out from all the others is how you handle mistakes. And if you are not properly insured to pay the cost to correct damage to your clients property you will quickly develop a bad name for your business.
Carrying Bonding Insurance (or being Bonded) will help keep you credible and build trust with clients. It is This will help cover costs for any fraudulent activities like theft, up to the amount of the bond.
What it means for you is that if an employee commits theft inside a clients home, after a claim gets filed and proven liable, the bonding company will cover the amount of the loss. This type of insurance is very standard for the cleaning and janitorial industry as well as,
This will cover costs of injuries to your employees while they are working.
So now you know what types of insurance is out there for your cleaning business. Here are the reasons why you need liability insurance when you start a cleaning business.
WHY YOUR CLEANING BUSINESS NEEDS INSURANCE
1. Stand out above the other ‘so-called’ cleaning companies
It is so easy to start a cleaning service. Many people will start with the cleaning supplies they have at their home, obtain a client and start cleaning homes. I have come across more ‘companies’ like this. They are not a ‘REAL’ business… they don’t register a business with their state, they don’t pay taxes (another topic for another day), they take cash under the table, and they don’t carry insurance. You will prove yourself a credible business when you can say you carry Business Insurance. Which leads me to reason #2!
2. Use it as a selling point
I can’t tell you how many contracts we received over other companies because we carried liability insurance. Customers loved hearing that they were protected if we damaged their property or if our employees were dishonest. You can justify your price point (I hope your not under bidding your competition, you’ll never profit successfully!) if you have insurance and Susie House Cleaner does not, you will more likely land the job.
As you are growing your client base and meeting new clients (psst…here’s some awesome low cost ways to grow your client base!) , they will not know you a part from the next stranger on the street. So telling them that you are insured, can give them piece of mind, build trust and assure then that you are a responsible business owner and can protect their stuff….which leads to point #3
3. Protect yourself
I am sure you started your cleaning business to make money…am I right??? Carrying insurance will help you to protect your assets. If you don’t carry the proper insurance when your cleaning business is liable for damages, you can be held liable. You don’t want to work hard at growing your business just to loose it.
Where to Get Cleaning Business Insurance
Now that I have talked you into getting Insurance for your Cleaning Business you need to go out and get some! You will want to get 3 quotes (like you would for your car insurance). I recommend starting with your car insurance company. You already have a working relationship with them, and you may even get a discount for carrying both personal and business insurance with them.
Next I would visit a local Insurance broker. Brokers will reach out to several different insurance agencies to get the best price and coverage for you. They will create a package for your insurance needs. When you are carrying different types of insurances and using different agencies, it will be easier to funnel all through one broker.
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