Janitorial Business Insurance

Insurance companies evaluate several factors when calculating the cost of janitorial insurance and janitorial bonds, including:

• Types of cleaning services offered: The types of cleaning services your business provides can affect your risk level. For example, companies that offer floor waxing, industrial cleaning, pressure washing, or work with hazardous cleaning materials may pay higher premiums than those that provide standard office or house cleaning services.
• Annual income: Higher revenue often means larger projects, more clients, and greater potential financial losses, which can increase insurance costs.
• Number of employees and payroll: Businesses with more employees typically pay higher insurance premiums because they face greater liability exposure and may have higher workers' compensation costs. A solo cleaner will generally pay less for insurance and bonds than a cleaning company with a full crew.
• Value of business property and equipment: The value of your cleaning equipment, tools, supplies, and other business property can influence the cost of coverage, especially if you purchase commercial property insurance.
• Coverage limits, deductibles, and additional insureds: Policies with higher coverage limits generally cost more, while choosing a higher deductible can help lower your premium. Many janitorial contracts also require additional insured endorsements, which may increase the overall cost of your coverage.
• Location: Where your business operates can affect rates due to local insurance requirements, claim trends, and the cost of lawsuits in your area.
• Claims history: Businesses with previous insurance claims are often viewed as higher risk and may pay more for coverage.
• Years of experience: Janitorial businesses with more experience tend to pay lower premiums than newer ones due to their lower associated risks.
• Types of clients and contracts: Janitors who clean large commercial properties, schools, medical offices, or warehouses may need higher coverage limits or specialized policies, which can increase premiums, compared to those who clean smaller residential properties.
• Types of insurance coverages purchased: Purchasing more coverage generally results in higher insurance costs. Many janitorial businesses combine general liability, workers' compensation, commercial auto, bonding, and a business owner's policy (BOP) for more comprehensive coverage.

A fidelity bond, also known as a janitorial bond, protects your clients from dishonest employees. Examples include janitorial workers who steal client property or those who complete an illegal funds transfer.

Although most state laws don't require cleaning companies to purchase janitorial bonds, there are several reasons why a small business owner may purchase one:

• You need a bond to get licensed. In some states, a bond is part of the requirements for getting a cleaning business license. Cities and counties sometimes have additional licensing laws and requirements, which could include a bond.
• You need a bond to sign a contract. Some clients will require your company to carry a bond before allowing your employees on their premises. This is especially true for government entities and larger clients that might employ your business.
• You need a bond to attract new clients. Clients will typically choose to work with a bonded and insured company over one that does not carry this protection. A bond shows clients that your business is reliable and guarantees reimbursement in the event of theft.

Note that you may also see this kind of bond referred to as a surety bond.

Janitorial businesses can get affordable coverage with TechInsurance and quickly access a certificate of insurance online, helping you fulfill client contract requirements faster.

When building a comprehensive risk management plan for a janitorial service business, small business owners may need additional insurance beyond commercial general liability and workers' compensation to cover all risks and liabilities.

Other janitorial service insurance policies to consider for complete peace of mind include:

• Professional liability insurance: Also known as errors and omissions insurance (E&O), this policy protects your janitorial service business from client lawsuits over errors, mistakes, or negligence they claim negatively impacted them.
• Cyber insurance: Helps small business owners recover financially from cyberattacks and data breaches. It's recommended for any business that stores sensitive customer data, such as credit card numbers and email addresses.
• Inland marine insurance: Safeguards your business property (such as cleaning supplies) while it's in transit, at a jobsite, or stored at an off-site location. Also called tools and equipment coverage, it would pay to replace a floor polisher if yours disappeared from a client's property.
• Commercial property insurance: Property insurance protects your janitorial equipment, electronics, furniture, and other items at your main business location against fires, storms, and other covered property claims. This protection is crucial since homeowner's insurance provides little to no coverage for business property.

• Business personal property (BPP): If you work from home and store your business property in your personal residence, BPP covers your company's property, such as computers, inventory, and equipment.

• Lost key coverage: This policy covers costs related to stolen, lost, or misplaced client keys. This also includes lock replacement and rekeying expenses.

• Employment practices liability insurance (EPLI): Protects your business against liability claims where an employee alleges harassment, discrimination, wrongful termination, or other violations of worker rights.

Some of these policies, including cyber insurance and BPP coverage, can be added to your general liability policy as an endorsement.

It may seem tempting to save money by foregoing coverage, but a lawsuit can be financially devastating. Maintaining continuous small business coverage is essential to protecting your business from financially devastating lawsuits.

With TechInsurance, you can get free quotes from top-rated insurance carriers by filling out one easy application.

There are a few other ways to get cheap janitorial business insurance, such as:

• Bundle your policies. The most popular option is a business owner's policy (BOP), which pairs your general liability policy with commercial property insurance to save money.
• Customize your policy. Choose lower limits, a higher deductible, or certain exclusions to save on your premium. Additionally, picking only the policies that benefit your specific business will help you save money.
• Focus on workplace safety. A safe work environment means fewer liability claims, which helps lower your insurance costs. Ensuring that your job site is safe, your janitorial equipment is well maintained, and your employees are well trained is crucial to avoiding claims.