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As a janitor, you provide a valuable service to your clients by keeping their premises clean and sanitary. However, your work also exposes you to various risks, such as
- accidents,
- injuries,
- property damage,
- lawsuits, and
- theft.
Without adequate insurance, you could face financial losses that could jeopardize your business and your livelihood.
That’s why you need janitorial insurance.
This is a type of business insurance that is tailored to the businesses owned by cleaning professionals. It covers different aspects of your operations, such as your equipment, your employees, your vehicles, and your liability.
We’re Horan, an insurance agency in Baldwinsville, New York, that specializes in business insurance. Since 2009, we've helped business owners like you secure the right coverage for their janitorial service.
In this article, we’ll discuss how janitorial insurance works and why you need it. By having janitorial insurance, you can protect yourself from unexpected costs and claims, and focus on growing your business.
Why Do You Need Janitorial Insurance?
Janitorial insurance is not only a smart investment, but also a legal requirement in some cases. According to the New York State Workers’ Compensation Board, if you have one or more employees, you must have workers’ compensation insurance. This applies to full-time, part-time, and temporary workers, as well as family members who work for you.
Additionally, some clients may require you to have general liability insurance before they hire you. This is especially true for large or high-profile clients, such as schools, hospitals, or government buildings. They want to make sure that you can cover any damages or injuries that may occur while you are cleaning their property.
Even if you don’t have employees or clients who require insurance, you still need janitorial insurance to protect yourself from potential risks.
Janitorial insurance can help you cover the costs of repairing or replacing damaged property, as well as the medical bills and legal fees of injured parties who were hurt as a result of your cleaning work. It can also protect you from theft, vandalism, or loss of income due to a covered event.
Why Do You Need Janitorial Insurance?
Janitorial insurance is not only a smart investment, but also a legal requirement in some cases. According to the New York State Workers' Compensation Board, if you have one or more employees, you must have workers’ compensation insurance. This applies to full-time, part-time, and temporary workers, as well as family members who work for you.
Additionally, some clients may require you to have general liability insurance before they hire you. This is especially true for large or high-profile clients, such as schools, hospitals, or government buildings. They want to make sure that you can cover any damages or injuries that may occur while you are cleaning their property.
Even if you don’t have employees or clients who require insurance, you still need janitorial insurance to protect yourself from potential risks.
Janitorial insurance can help you cover the costs of repairing or replacing damaged property, as well as the medical bills and legal fees of injured parties who were hurt as a result of your cleaning work. It can also protect you from theft, vandalism, or loss of income due to a covered event.
What Types of Coverage Do You Need?
Janitorial insurance can include different types of coverage, depending on your specific business structure. Here are some of the most common ones:
Workers Compensation
If you hire employees, you need workers compensation. It covers the medical expenses and lost wages of your workers if they get injured on the job. Janitorial work can be hazardous, so you want to make sure your staff is taken care of.
Business Owners Policy
A business owners policy (BOP) combines general liability and property insurance. It covers the damages you cause to others or their property while doing your work. It also covers your own tools, supplies, and equipment, such as floor waxers or commercial cleaners. If something happens to them, you can replace them without losing money.
Voluntary Property Damage Coverage
One of the most important coverages for janitorial businesses is voluntary property damage. It covers the items you damage while moving or cleaning them. For example, if you lift a vase to dust under it and drop it, you are liable for the damage. Your general liability policy will not cover it, because you voluntarily touched the item.
You need voluntary property damage coverage to pay for the repair or replacement.
This coverage also applies to larger items that you move with a hand truck or a dolly. For instance, if you clean a warehouse in East Syracuse and have to relocate some racks, you are responsible for any damage you cause to them.
If you accidentally knock them over and cause a chain reaction, you could face a huge claim. Voluntary property damage coverage can save you from a financial disaster.
Employment Practices Liability Insurance
Another critical coverage for janitorial businesses is employment practices liability insurance (EPLI). It covers you from lawsuits related to wrongful termination, sexual harassment, discrimination, and other employment issues. Janitorial businesses tend to have a high turnover rate, which increases the risk of such claims.
Moreover, your employees may work without your supervision, which means you cannot control their behavior with each other or with the clients. You do not want to deal with a complaint that your cleaner made unwanted advances at a client’s spouse. EPLI can protect you from such scenarios.
However, if you work alone and have no employees, you can skip this coverage. It depends on the size of your business and the number of people you employ.
Commercial Auto Insurance
Commercial auto insurance is essential for your janitorial company, no matter how big or small it is. You may use your personal car or a van to transport your equipment and staff to different locations. If you get into a collision, you could face medical bills, repair costs, and legal fees.
Your personal auto policy will not cover your business use of your vehicle. You need commercial auto insurance to cover the damages and liabilities.
Even if you work alone and use your own car to visit clients, you need to protect your vehicle for business use.
You have two options: either upgrade your personal auto insurance to include business use class and check with your carrier, or get a separate commercial auto policy that covers your car fully.
Commercial Umbrella Coverage
Commercial umbrella coverage is an optional type of insurance that provides extra liability protection for your janitorial business. It can help you pay for claims that exceed the limits of your other liability policies, such as general liability, commercial auto, or workers compensation.
For example, if your employee accidentally damages a client’s expensive equipment while cleaning, and the repair cost is more than your general liability limit, your umbrella policy can cover the difference.
Or, if your employee causes a serious car accident while driving to a job site, and the medical and legal expenses are higher than your commercial auto limit, your umbrella policy can pay for the excess amount.
Commercial umbrella coverage can protect your business from financial losses and lawsuits that could otherwise ruin your reputation and your livelihood. It can also help you meet the contractual requirements of some clients who may demand higher liability limits than your standard policies.
To get commercial umbrella coverage for your janitorial business, you need to have at least one underlying liability policy, such as general liability, commercial auto, or workers compensation.
Janitorial Surety Bond
A janitorial surety bond is a type of fidelity bond that protects your clients from employee theft or damage of their property while you are cleaning it. Unlike a bid bond or a performance bond, which guarantee that you will complete a project according to the contract terms, a janitorial bond covers the risks that arise from your ongoing service.
For example, if your employee steals a laptop from a client’s office or breaks a vase while dusting, a janitorial bond will reimburse the client for the loss. A janitorial bond also helps you build trust and credibility with your clients, as it shows that you are willing to take responsibility for your actions and protect their interests.
To learn more about the benefits of surety bonds, read our comprehensive article on this subject.
Is Janitorial Insurance Expensive?
Janitorial insurance is not expensive when you consider the benefits it provides for your business. It can protect you from costly losses, lawsuits, and liabilities that could otherwise ruin your reputation and your livelihood.
It can also help you meet the expectations and requirements of your clients, who may prefer to hire insured and bonded cleaners.
The cost of janitorial insurance is relative to the level of risk and protection you need for your business. You can find affordable and customized policies that suit your situation and budget by comparing different quotes and providers.
We can help you do that. Consulting with an independent agent can lead to appropriate coverage at the best rate for your budget and setup.
Get the Janitorial Insurance Your Cleaning Business Deserves
We know that running a cleaning business isn't easy, and that you face many challenges and uncertainties every day. We also know that you care about your business and your clients, and that you want to do your best to serve them.
That’s why we want to help you get the right janitorial coverage. Janitorial insurance is not just a legal requirement or a business expense. It’s also a way to show your clients that you value their trust and their property.
Insurance can be confusing and overwhelming. There are so many options and factors to consider. You may not know where to start or who to trust.
Rest assured, Horan is here for you. We can guide you through the process and answer your questions. We can also save you time and money by comparing quotes and policies from top insurance providers.
You don’t have to do this alone.
Click the Get a Quote button below for a free quote and consultation. We’ll be happy to get a sense of your business and discuss your coverage options.
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