House Cleaner Insurance: What You Need

House cleaners should have insurance to protect themselves and their business from financial losses due to accidents, injuries, criminal activity, or natural disasters. The specific type of insurance will depend on the state in which the business operates and how the business is structured. For example, most states require workers' compensation insurance for businesses with employees, but this is not required in Texas or South Dakota. General liability insurance is also recommended to protect against slip-and-fall accidents and damage to client property. Other types of insurance that may be beneficial include commercial auto insurance, commercial property insurance, and cyber insurance.

General liability insurance

Bodily Injury

If someone slips and falls on a floor you've just mopped and breaks their wrist, they may sue you, even if you placed warning signs. In this situation, general liability insurance would provide a defence for you in the lawsuit. In a bodily injury situation, insurance would cover the subsequent claim and the customer's related medical expenses, up to your limits of liability.

Property Damage

If an employee breaks a client's expensive family heirloom while dusting, general liability insurance would cover the subsequent claim, up to your limits of liability.

Personal Injury

If an employee talks about a client in a false and unflattering way to someone outside of the business, and the client sues for slander, general liability insurance would cover the subsequent claim, up to the policy's limits of liability, and pay for an attorney to defend you if necessary.

Advertising Injury

If you copy another cleaning company's logo or slogan, it could lead to a lawsuit. General liability insurance covers accidental advertising injuries, including defamation, copyright infringement, libel, and slander.

Workers' compensation insurance

The physical nature of house cleaning work increases the likelihood of workplace injuries. For example, a housekeeper could slip and fall on a freshly mopped floor, or a carpet cleaner could injure their back while working. In such cases, workers' compensation insurance can cover the immediate and ongoing medical costs, including ambulance rides, emergency room visits, medications, and physical rehabilitation. It also provides disability benefits while the injured employee is unable to work, ensuring they still receive a portion of their wages.

Additionally, workers' compensation insurance protects your business from financial losses in the event of an employee lawsuit. If an employee feels their injury was due to negligence, they may decide to sue. This insurance can help cover the legal costs and settlements associated with such a scenario.

In most states, workers' compensation insurance is required by law if you have employees. The specific requirements vary by state, with some states mandating coverage for even one part-time employee, while others require it only for a certain number of employees. It's important to check your state's laws to ensure compliance and avoid fines and penalties.

The cost of workers' compensation insurance for cleaning businesses depends on several factors, including the number of employees, the location of your business, and the specific risks associated with the work. On average, cleaning businesses pay around $136 per month or $1,627 per year for this type of insurance. However, rates can be higher for businesses with more employees or those that engage in riskier work, such as window cleaning on skyscrapers.

Commercial auto insurance

If you're running a house-cleaning business, you'll likely need to get your company vehicles insured. Commercial auto insurance is usually required for business vehicles and can cover you in a variety of situations.

For example, it can pay for repairs to your vehicle, medical expenses if someone is injured, property damage, legal fees, and gap coverage on financed and leased vehicles. It covers third-party medical bills and property damage in an accident, along with vehicle damage. This includes physical damage and collision coverage, injuries caused to another person, and theft and repairs due to vandalism or weather.

Most states require a commercial auto policy for vehicles owned by a business. If you're using a personal, rented, or leased vehicle for work purposes, you'll need hired and non-owned auto insurance (HNOA) instead. The cost of commercial auto insurance depends on factors such as the policy limits, the value of the vehicle, and the driving records of those insured to drive the vehicle.

Business owner's policy

A business owner's policy (BOP) is a type of insurance that combines general liability coverage with protection for your commercial buildings and personal property into one package. It usually costs less than purchasing each of these policies separately.

A BOP is recommended for small, low-risk cleaning businesses. It is an ideal way to protect against the most common lawsuits and business property damage.

The cost of a BOP depends on the value of your cleaning equipment and other property, as well as other factors such as your type of business and its size. On average, a BOP costs cleaning businesses around $76 per month or $907 annually.

The policy limits for a BOP are typically set at $1 million per occurrence and $2 million aggregate. You can also add business interruption insurance to a BOP, which covers day-to-day operating expenses and other costs if your business is forced to close temporarily due to a fire or other covered property claim.

Tools and equipment insurance

The cost of tools and equipment insurance will depend on the specific business and its needs. Basic tools and equipment coverage can start as low as $12.50 per month, while a Pro Plus policy can be around $45 per month.

In addition to tools and equipment insurance, there are other types of insurance that house cleaners may want to consider, such as general liability insurance, workers' compensation insurance, and commercial auto insurance. These types of insurance can provide protection in the event of accidents, injuries, property damage, and other potential risks associated with the cleaning business.

Frequently asked questions