How much is carpet cleaning insurance?

Carpet cleaning businesses typically spend an average of $53 per month, or $630 annually, on general liability insurance.

This type of insurance provides protection if a customer suffers a bodily injury or you break their property. For example, if a customer slips on a freshly mopped wet floor at your office, or a cleaner accidentally breaks a piece of furniture in a client's home, this policy would pay for legal defense costs and other related expenses. It also covers advertising injuries such as slander, libel, and copyright infringement.

Here’s the average general liability policy purchased by carpet cleaning companies through TechInsurance:

Premium: $53 per month
Policy limits: $1 million per occurrence and $2 million aggregate
Deductible: $500

The price of general liability coverage can vary depending on several factors, including your policy limits, the size of your operation, customer foot traffic, and whether you use subcontractors or need to list additional insureds.

Carpet cleaning companies spend an average of $127 per month, or $1,522 per year, on workers’ compensation insurance.

Workers’ comp helps cover medical bills and lost wages if you or an employee gets hurt or sick while on the job. For example, a cleaner might slip on a wet surface and suffer a broken bone.

A standard workers’ compensation policy usually includes employer’s liability insurance, which offers additional protection from legal costs if an injured worker files a lawsuit.

State laws often require businesses to secure workers' comp as soon as they hire their first employee, but that's not always the case. It's required in California and New York for every business with employees, in Florida for every business with four or more employees, and it's optional for most companies in Texas.

Even though workers' comp may not be required for sole proprietors or independent contractors, such as a single-person carpet cleaning business, it's still recommended. Medical bills are expensive, and most health insurance plans can deny claims for injuries that happen on the job.

For cleaning businesses, including carpet cleaning companies, a janitorial bond averages $11 per month, or $126 per year. In many cases, you’ll need this bond in place before you can secure a client contract.

A janitorial bond is a type of surety bond, also known as a fidelity bond or employee dishonesty bond.

For example, if a carpet cleaning professional steals jewelry from a client's home, the bond reimburses the client for the loss. Unlike traditional insurance, you’re responsible for paying the bonding company back for the cost of the customer's property and other related expenses.

Carrying a bond shows potential customers that your business is trustworthy. In fact, some clients will only work with carpet cleaning companies that are both bonded and insured.

The price of a janitorial bond is based on the bond amount you choose, since you’ll pay a percentage of the total coverage.

Carpet cleaning businesses spend an average of $207 per month, or $2,482 annually, on commercial auto insurance.

This insurance covers repair costs, medical expenses, and legal fees if a company-owned vehicle is involved in an accident. It can also protect against theft, vandalism, and certain types of weather damage.

In most states, businesses are required to carry a commercial auto policy for any vehicles they own. If your cleaning staff uses personal, rented, or leased vehicles for work, you’ll need hired and non-owned auto insurance (HNOA) instead.

The price of commercial auto coverage varies based on factors such as your policy limits, claims history, the value of your vehicles, and the driving records of employees who operate them.

Smaller, lower-risk carpet cleaning service providers are often eligible for a business owner’s policy (BOP). On average, carpet cleaners pay $74 per month, or $889 annually, for this insurance coverage.

A business owner's policy is a smart choice for carpet cleaning companies that operate from a building or office, as it combines general liability insurance with commercial property insurance at a reduced rate. This protects your business from both third-party lawsuits and damage to your workspace or cleaning equipment.

If your company doesn’t maintain a physical location, you can still get protection by adding business personal property (BPP) coverage to a general liability policy, or by choosing tools and equipment insurance for supplies and tools that travel with you to job sites.

Here’s the average business owner’s policy purchased by carpet cleaning businesses through TechInsurance:

Premium: $74 per month
Policy limits: $1 million per occurrence and $2 million aggregate
Deductible: $500

Many cleaning businesses also add business interruption coverage to their BOP. This helps cover operating expenses and other costs if your business has to shut down temporarily due to a covered event, such as a fire.

The price of a BOP is influenced by the value of your building and business property, as well as the same factors that affect your general liability insurance premium, like the size and type of your business.

Cleaning companies, including carpet cleaning companies, spend an average of $67 per month, or $801 annually on commercial umbrella insurance. This type of insurance coverage is often used to meet client contract requirements for higher liability limits.

Umbrella coverage extends the protection of your general liability, commercial auto, and employer’s liability policies in $1 million layers. If a claim exceeds the limits of one of these underlying policies, the umbrella policy provides additional coverage.

The price of umbrella insurance depends on your business risks and the amount of coverage you choose. Keep in mind, you’ll need to carry a minimum level of underlying insurance before you can purchase an umbrella policy.