If you are operating without insurance you are playing Russian Roulette with your money and your business. You either plan to always work alone or plan to only make a limited amount of money. Here's why...
Insurance is the safety blanket to your business. It's not only a necessity its a requirement! Small or Large, every cleaning business should have insurance. Some more then others, but some! The type of insurance is determined by the people you wish to serve.
Commercial Cleaning
If you are cleaning offices and buildings you will be required to have a lot more insurance then you would then if you were cleaning residential.
Most commercial companies will require you to have at least $1,000,000 in coverage. Yes, that's one million! And that's the minimum. But that's in Liability Insurance Only. That doesn't cover the other insurances you need to have. Let's take a look...
Insurance Types :
Liability Insurance : Covers damages to items and property.
Workman's Comp. Insurance : Covers slips and falls. Accidents by you or your staff while working on the property. The most expensive and paid per employee.
Bonding: Covers Theft and must cover individuals. Or each staff
Cost :
The cost for each of these can be paid monthly and can be purchased at most auto insurance companies. ( Prices below vary and are based on provider )
Liability Insurance ($1,000,000 In Coverage) About $150 Down / $75 Month
Workman's Comp Insurance: $500 - $1000 Down / Monthly depends on number of employees. Can range from $150-$350 per person
Bonding ($5000 min) - Amount is based on what will be covered. If you are working in banks/electronic stores/malls they may required you to have a larger amount ($100,000-$1 million ) being they have more valuable items at risk to be taken.- Yearly one time fee; $250-$2500
Insurance Requirements: Residential / Commercial
With either type of business you SHOULD have insurance. But if you want to see which is best, based on where you are financially. Here's something to consider...
Residential Cleaning Requirements
Pros - Liability Insurance: If your going into homes that have furniture or that people who reside in it, i definitely recommend it. Clients wont ask to see it, but may ask if you have it. A must if you have others working for you or helping you. Always good to be safe. Bonding insurance is a great value for your customers with Larger Homes and have valuable assets.
Cons - No Insurance: You can clean without it. Yes, you are taking a risk. If it's you alone, i say go for it til you get it. And make it a short term goal to get it with the first monies you make.
Commercial Insurance Requirements
Pros - Liability Insurance is required for 99% of your larger clients and they will want a copy of the insurance certificate. The more insurances you have , the better you look to a potential customer ( Larger Commercial Client ie: Walmart,Stadium,High rise )If there in the business for hiring a cleaning company the fact you have no risk to try your company puts their minds at ease. Your insured! No worries!
Cons - Depending on the insurance you DON'T have, it may limit you who you can serve. Workman's Comp Insurance is required when doing jobs contracted with the city or state.
Banks will require you to have all staff bonded before contact starts. Requirements vary per company and industry you serve.
Some of your commercial clients may require you to add them as a Certificate Holder with your insurance provider. ( Means they get notified if you let insurance lapse/drop )
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