Insurance: Cleaning Houses, Do I Need It?

Whether or not you need insurance to clean houses depends on where you do business and how you operate your business. While it may not be a legal requirement in your state or country, it is highly recommended that you consider insurance coverage to protect yourself and your business.

If you are self-employed, you are not covered under your client's insurance. In this case, you should get insurance coverage to protect yourself and your business in case of accidents, damage to client property, or injuries to yourself or others.

If you have employees, you will likely be legally required to have workers' compensation insurance to cover their workplace injuries and associated legal costs.

Other types of insurance to consider include general liability insurance, tools and equipment insurance, cyber insurance, and commercial auto insurance.

Public liability insurance

In addition, public liability insurance can provide peace of mind by covering your legal and defence costs, court attendance costs, and compensation awarded to the claimant. It is worth noting that customers will often want to see evidence of this type of cover before you commence working on their premises.

The cost of public liability insurance for cleaners varies depending on factors such as size, clients, experience, and cleaning business activities. In Australia, self-employed house cleaners with no previous claims can expect to pay around $500 or $50 per month for $5 million in public liability insurance coverage.

Business equipment insurance

Whether you're a self-employed cleaner or you run a cleaning company, it's important to have the right insurance to protect yourself and your business. While there isn't a straightforward answer to the question of whether cleaners need insurance, having insurance can provide financial protection and peace of mind. It can also signal stability and responsibility to your clients, helping you grow your business.

For example, if your floor cleaner breaks right after the warranty expires or someone steals your tools from your car, equipment insurance will cover the cost of repairing or replacing these items. This ensures that you can get back to work quickly without incurring significant financial losses.

Equipment insurance is typically added to your general liability insurance policy, which covers common accidents such as property damage and injuries to non-employees. By bundling these policies, you can often save money on your insurance premiums.

When considering business equipment insurance, it's important to assess the value of your equipment and the potential impact of losing or damaging these items. This insurance provides financial protection and helps you maintain your operations without interruptions.

In addition to equipment insurance, there are several other types of insurance that cleaning businesses may want to consider, including general liability insurance, workers' compensation insurance, commercial auto insurance, and commercial property insurance. These insurance policies work together to provide comprehensive protection for your business, safeguarding your operations, employees, equipment, and vehicles.

Employers' liability insurance

If you are running a house cleaning business, it is important to have the right insurance in place to protect yourself and your business. While there may not be a straightforward answer to whether or not you need insurance as a cleaner, it is definitely recommended. The type of insurance you need will depend on the nature of your business, whether you have employees, and the state in which you operate.

This type of insurance is a legal requirement if you employ anyone, even if it is just one person or on a temporary basis. There are heavy penalties if you are caught operating without it. Employers' liability insurance covers you if an employee files a compensation claim against you, alleging that something you did or failed to do resulted in them being injured. It covers any compensation awarded, as well as associated costs and legal fees. This type of insurance can also help you handle any claims made against you, as your insurer will be able to provide support and guidance.

Tools and equipment insurance

Whether you are a self-employed cleaner or run a house-cleaning company, it is important to have the right insurance to protect your business. While there isn't a straightforward answer to the question of whether cleaners need insurance, as it depends on the state and how the business is operated, insurance can provide financial protection and help with marketing your business to customers.

• Equipment breakdown after warranty expiration: If a piece of equipment, such as a pressure washer, breaks down just after the warranty period ends, tools and equipment insurance can cover the cost of repairing or replacing it.
• Theft of tools from a trailer or job site: In the unfortunate event that your tools are stolen from a trailer or job site, this insurance will cover the cost of replacing them, ensuring you can continue operating your business without delay.
• Damage to employee tools and clothing: If your employee's tools are damaged due to circumstances beyond their control, such as a leak at a job site, tools and equipment insurance can provide financial assistance for repairs or replacements.
• Protection for borrowed equipment: In some cases, tools and equipment insurance can also cover borrowed equipment. This added layer of protection ensures that you are not left bearing the cost of repairing or replacing items that do not belong to you.

It is important to note that tools and equipment insurance does not cover corrosion, rust, wear and tear, or rented equipment. For rented equipment, it is advisable to opt for insurance provided by the rental company.

The cost of tools and equipment insurance can vary depending on the level of coverage you choose. Basic coverage can start as low as $12.50 per month, while more comprehensive plans can range from $24.20 to $45 per month.

General liability insurance

Whether you are a self-employed cleaner or run your own house-cleaning company, it is important to have the right insurance to protect yourself and your business. While there isn't a straightforward answer to the question of whether cleaners are required to have insurance, it is certainly beneficial to have some form of coverage in place. The insurance requirements may also vary depending on the state and how you operate your business.

In addition to the financial protection it offers, general liability insurance can also enhance your business's reputation and marketability. It demonstrates to your clients that you are stable, responsible, and committed to delivering a reliable service. This can help you expand your client base and position your business for success.

The cost of general liability insurance for cleaning businesses averages $48 per month, or $580 per year. However, the price may vary depending on various factors, including the size of your business, the level of interaction with customers, your revenue, and the specific risks associated with your industry.

Frequently asked questions