Janitorial Cleaning Services Insurance Policy Information
Janitorial Cleaning Services Insurance. As a commercial cleaning professional, you provide an invaluable service to the companies and business owners that you service. However, while your services are certainly beneficial, there are definite risks that you are exposed to.
Janitorial services clean the interior of premises for commercial, industrial, and institutional clients. Some provide exclusive services to one client only, while others have a number of regular clients or offer services to the public on an "as needed" basis.
Typical services include the removal of trash from all areas of the premises, cleaning restrooms, dusting, and regular vacuuming, mopping or sweeping of floors. Other services may include cleaning carpets, draperies, or eating areas, polishing floors, and window washing. Some provide cleaning services for properties up for sale or after criminal activity.
By carrying the right janitorial cleaning services insurance, you can safeguard your commercial janitorial or cleaning service. Why is insurance important? What type of insurance coverage should you carry? Read on to learn how to keep your business protected.
Janitorial cleaning services insurance protects your business from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked janitorial and cleaning insurance questions:
- What Is Janitorial & Cleaning Insurance?
- How Much Does Janitorial & Cleaning Insurance Cost?
- Why Do Janitorial & Cleaning Businesses Need Insurance?
- What Type Of Insurance Do Cleaning Businesses Need?
- What Are Cleaning And Janitorial Services Risks & Exposures?
- What Does Janitorial & Cleaning Service Insurance Cover & Pay For?
What Is Janitorial & Cleaning Insurance?
Janitorial and cleaning insurance is a type of insurance that is specifically designed for businesses that provide cleaning and janitorial services. This type of insurance provides coverage for a variety of potential hazards and risks that businesses in this industry may face, including property damage, liability claims, and worker's compensation.
Some of the specific types of coverage that may be included in janitorial and cleaning insurance include general liability, professional liability, and workers' compensation insurance. Additionally, some policies may also provide coverage for damage to equipment, lost income, and other business-related expenses.
How Much Does Janitorial & Cleaning Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small janitorial and cleaning businesses ranges from $37 to $59 per month based on location, size, payroll, sales and experience.
Why Do Janitorial & Cleaning Businesses Need Insurance?
Janitorial and cleaning businesses need insurance for several reasons. Firstly, these businesses often have employees who are working in a variety of different locations and may be at risk of accidents or injuries on the job.
Janitorial cleaning services insurance can provide financial protection for these businesses in the event of an accident or injury occurring, helping to cover any medical costs or other expenses that may be incurred.
Additionally, janitorial and cleaning businesses often work with a variety of different clients, and may be held liable if any damage occurs to a client's property while they are cleaning. Insurance can provide protection for these businesses in the event of a claim being made against them, helping to cover any costs associated with defending against the claim or paying out damages.
Insurance is also important for janitorial and cleaning businesses to protect against any damage or theft of their own equipment or supplies. This can be especially important if the business uses expensive or specialized equipment, as the cost of replacing this equipment can be significant.
Overall, insurance is essential for janitorial and cleaning businesses to protect against financial losses and provide peace of mind for both the business owner and their employees.
What Type Of Insurance Do Cleaning Businesses Need?
There are several janitorial cleaning services insurance policies that commercial cleaning companies should carry. Some of these policies are legally required, while some are not; however, even if you are not obligated to carry a specific policy, it may still be in your best interest to carry it.
- Commercial General Liability: This type of janitorial cleaning services insurance is a requirement for all business owners to carry, including those who own and operate commercial cleaning services. Commercial general liability insurance can help to cover the cost of third party injuries and property damages, as well as legal claims that may be filed against you. For instance, if a client's property is damaged while you are performing a service, this policy will help to cover the cost of repairing or replacing the property. Should the client file a lawsuit against you, it will assist with legal fees.
- Commercial Property: This type of insurance will protect the physical property of your business, including the building you operate your business out of (whether you own or rent it), as well as the contents within the property. For example, if a tree branch falls during a storm and damages your building, this insurance policy will help to pay for the repairs, or if cleaning equipment is stolen from your property, this policy will assist with replacing it.
- Commercial Auto: If the business owns the vehicles you need business auto insurance. Should you or an employee be involved in a motor vehicle collision while traveling to a job site, commercial auto insurance will help pay for damages to the vehicle, medical bills, and property within the vehicle that may be damaged.
- Workers Compensation: If you employ a team of professionals for your commercial janitorial company, workers' compensation insurance is a must. In fact, depending on where your business is located, you will be legally required to carry it. In some locations, it is not a requirement, but it is still a worthwhile investment. If an employee is injured while performing a work-related task, workers' comp insurance will help to cover the cost of medical bills, lost wages, and rehabilitation that the employee may need.
What Are Cleaning And Janitorial Servicess Risks & Exposures
Premises liability exposure is slight at the janitorial service's premises due to lack of public access to the premises, but moderate away from the premises due to hazards at the job site. When cleaning building interiors, there is some potential for slip and fall injuries to the client's employees or customers due to wet, slippery floors, spills and equipment and supplies impeding access. The absence of basic controls (e.g., scheduling to minimize any work done while the premises are open for business, proper caution signs, the use of non-slip finishes, etc.) may indicate a morale hazard. There is also the risk of injury or damage to customers' property from spills, marring, scratched surfaces, and the upset or dropping of breakables.
Many of these fall under the care, custody and control exclusion, and should be covered under inland marine bailees' forms. All agreements regarding responsibility for the property in the insured's care need careful review and evaluation. Janitorial services typically employ casual labor and have high turnover, with minimal time or budget for training, which can increase the loss potential. Pre employment background checks and reference checks should be a part of the hiring process in order to protect clients. A major concern is failure to secure the premises during cleaning and especially upon completion of the work. This hazard increases with high employee turnover.
The cleaning service should have specific procedures addressing lockup and key control that include a final checklist by the supervisor of a particular client when the job is completed. Some areas of customers' premises may need to remain closed because they contain property susceptible to damage or contamination, dangerous materials, or confidential information.
Personal Injury exposures include invasion of privacy and even assault to the customers' employees. Failure to run background checks and review references on employees increases the hazard and reduces available defenses.
Workers compensation exposure can be high. Casual labor, high turnover and minimal training time are all factors affecting losses. Work is also frequently performed under time constraints, which can encourage workers to cut corners. Lung, eye, or skin irritations and reactions can result from cleaning chemicals. Slips and falls can occur during cleaning operations. Back injuries, hernias, sprains and strains can result from lifting. Employees can be assaulted while working "off hours" in empty buildings. Close supervision is needed. Workers may be injured in auto accidents during transportation to and from job sites.
Property exposures at the janitorial service's premises are usually limited to an office and storage of equipment, supplies, and vehicles. Cleaning supplies may contain flammable chemicals that require proper labeling, separation, and storage in approved containers and cabinets to reduce the potential for fire. There may be a garage area for vehicles transporting equipment and crew to job sites.
Crime exposure is from employee dishonesty, including theft of clients' property. Background checks, including criminal history, should be performed on all employees handling money. All ordering, billing and disbursement should be handled as separate duties with reconciliations occurring regularly. Supervision, monitoring and regular crew changes are all used to minimize the exposure.
Inland marine exposure includes accounts receivable if the janitorial service offers credit to customers, and valuable papers and records for customers' and suppliers' information. Contractors' equipment is limited to janitorial supplies and equipment, such as vacuum cleaners taken to the customer's premises. Some contractors may store some of their equipment on the customer's premises; others do their work with equipment provided by the client.
There may be a bailee's exposure for customers' property in the janitorial service's care, custody and control. Damage to high-valued items like carpeting and draperies could result in a sizable loss because a small spill or other damage could result in the entire item being unusable.
Automobile exposures are generally limited to driving to and from clients' premises with crew, equipment, and supplies. All drivers must be well trained and have valid licenses for the type of vehicle being driven. MVRs must be run on a regular basis. Random drug and alcohol testing should be conducted. Vehicles must be well maintained with records kept in a central location. If employees provide their own transportation to worksites, the exposure is limited to nonowned for work-related errands. If workers transport coworkers in personal autos, the cleaning service should verify that personal automobile insurance has been purchased.
What Does Janitorial & Cleaning Service Insurance Cover & Pay For?
Janitorial and cleaning services can face various legal claims or lawsuits due to accidents, injuries, property damage, or alleged negligence. These lawsuits can be costly and can potentially ruin a business if they do not have adequate insurance coverage. Here are some examples of the reasons Janitorial and Cleaning Services are sued and how insurance can protect them:
Slip and Fall Accidents: Janitorial and cleaning services can be sued if a client, employee, or a third-party suffers an injury due to a slip and fall accident caused by a wet floor, inadequate signage, or slippery surface. Insurance coverage like General Liability Insurance can help pay for medical bills, legal fees, and compensation for damages.
Property Damage: If a cleaning service accidentally damages a client's property while cleaning, they can be held liable for the repair or replacement costs. Commercial Property Insurance can protect cleaning services against such damages and losses.
Employee Injuries: Cleaning services can be sued if an employee suffers an injury while performing their job duties. Workers' Compensation Insurance can cover medical bills, lost wages, and other related expenses.
Alleged Negligence: A client can sue a cleaning service if they feel that the service provider did not meet their obligations or failed to provide services as promised. Professional Liability Insurance can help pay for legal fees and damages awarded to the client in such cases.
Discrimination and Harassment: If an employee or client files a discrimination or harassment lawsuit against a cleaning service, Employment Practices Liability Insurance (EPLI) can protect the business against legal costs, judgments, and settlements.
In summary, having the right insurance coverage can help protect Janitorial and Cleaning Services against unexpected costs and losses arising from lawsuits or legal claims. Insurance coverage can help pay for legal fees, settlements, and damages awarded to the plaintiffs, thus safeguarding the financial stability and reputation of the business.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7349 Building Cleaning and Maintenance Services, Not Elsewhere Classified
- NAICS CODE: 561720 Janitorial Services
- Suggested Workers Compensation Code(s): 9014 Janitorial Services by Contractors - No Window Cleaning Above Ground Level & Drivers
Description for 7349: Building Cleaning and Maintenance Services, Not Elsewhere Classified
Division I: Services | Major Group 73: Business Services | Industry Group 734: Services To Dwellings And Other Buildings
7349 Building Cleaning and Maintenance Services, Not Elsewhere Classified: Establishments primarily engaged in furnishing building cleaning and maintenance services, not elsewhere classified, such as window cleaning, janitorial service, floor waxing, and office cleaning. General contractors and special trade contractors primarily engaged in building repair work are classified in Division C, Construction.
- Acoustical tile cleaning service
- Building cleaning service, interior
- Chimney cleaning service
- Custodians of schools on a contract or fee basis
- Floor waxing service
- Housekeeping (cleaning service) on a contract or fee basis
- Janitorial services on a contract or fee basis
- Lighting maintenance service (bulb replacement and cleaning)
- Maid service on a contract or fee basis
- Maintenance, building: except repairs
- Office cleaning service
- Service station cleaning and degreasing service
- Telephone booths, cleaning and maintenance of
- Venetian blind cleaning, including work done on owners'premises
- Window cleaning service
Janitorial Cleaning Insurance - The Bottom Line
If you operate a commercial cleaning company, carrying the right type of insurance will help to safeguard your business from a number of risks. It could ultimately prevent you from suffering severe financial losses that could potentially damage your business.
To find out what type of commercial insurance you should carry - and how much coverage you should have - speak to a reputable insurance broekr that specializes in polices for commercial cleaning companies.
Additional Resources For Contractors & Home Improvement Insurance
Learn about small business contractor's insurance, including what it covers, how much it costs - and how commercial insurance can help protect your contracting business from lawsuits.
- Air Conditioning Systems Installation Repair
- Appliance Repair & Service
- Blacksmith & Metal Workers
- Boat Repair & Dry Docks
- Boiler Contractors
- Builders Risk
- Building Cleaning & Maintenance Services
- Cabinet Installer
- Cable And Satellite TV Installer
- Chimney Sweep
- Cistern Contractors
- Contractor Liability
- Curtain Cleaners
- Deck Builders
- Door And Window Installers
- Dryer Vent Cleaning
- Drywall Contractor
- Electrical Contractors
- Environmental Remediation Contractors
- Fence Installation
- Fire Sprinkler Contractors
- Fire & Water Restoration Contractors
- Flooring Contractor
- Furniture Repair
- Garage Door Installer And Repair
- General Contractors
- Glass Contractor
- Glazier Insurance
- Gutter Installation And Repair
- House Cleaning
- HVAC Contractor
- Insulation Contractor
- Janitorial Cleaning Services
- Lawn Care
- Lawn Irrigation Sprinkler System Installation
- Oil And Gas Well Drilling Contractors
- Paperhanging Contractors
- Plastering And Stucco Contractor
- Pressure Washing Contractors
- Propane And Fuel Dealers
- Rug, Upholstery & Carpet Cleaning
- Sandblasting Contractors
- Security Alarm
- Septic Tank Cleaning
- Siding Contractor
- Sign Installation & Repair
- Solar Panel Installers
- Snow Plow
- Stone And Tile Installer
- Surety Bonds
- Swimming Pool Contractor
- Swimming Pool Service And Maintenance
- Tank Cleaners
- Tool Grinding And Repair
- Tree Surgeon
- Tree Trimming
- Upholstery Shop
- Waste Haulers & Garbage Collection
- Water Well Drilling
- Welding Contractor
- Wildlife & Pest Control
- Window Cleaning
- Specialty Contractors
The contracting industry is a field that involves a lot of risks, both for the contractor and for the clients they work for. This is why commercial insurance is so important for contractors. Insurance can protect contractors from a variety of potential losses, such as:
Liability: If a contractor causes damage to a client's property or if a client is injured while on a job site, the contractor could be held legally responsible. Liability insurance can cover legal fees and any settlements or judgments that may be awarded.
Property damage: Contractors often use a lot of expensive equipment and tools, and there is always a risk that this equipment could be damaged or stolen. Commercial property insurance can help cover the cost of replacing damaged or stolen equipment.
Business interruption: If a contractor is unable to work due to an unforeseen event, such as a natural disaster, insurance can help cover their lost income during this time.
Workers compensation: If a contractor or one of their employees is injured on the job, worker's comp can help cover medical expenses and lost wages.
Overall, commercial insurance is an important risk management tool for contractors. It can provide financial protection against a wide range of potential losses, helping contractors to stay in business and continue serving their clients.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Contractors' Equipment and Tools, General Liability, Employee Benefits Liability, Umbrella Liability, Automobile Liability and Physical Damage, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Accounts Receivable, Builders Risk, Computers, Goods in Transit, Installation Floater, Valuable Papers and Records, Cyber Liability, Employment-related Practicesand Stop Gap Liability.