Janitorial Insurance Cost

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Janitors, maids, and cleaners face several potential risks that can impact their business negatively if they aren’t protected by the right insurance policy.

From claims of theft to damaging expensive property or belongings, janitors and other cleaning professionals need to be prepared in case they make any mistakes or experience any accidents while performing their duties.

Read on to learn more about the cost of janitorial insurance, which types of policies you may need, and what is covered by janitorial insurance.

We’ll Cover

  • What is janitorial insurance?
  • What janitorial insurance covers?
  • Janitorial insurance benefits
  • Janitorial insurance costs
  • Types of janitorial insurance
  • Tips for buying
  • FAQ

What is Janitorial Insurance?

Janitorial insurance can include several different types of coverage, such as general liability, workers’ compensation, commercial property, commercial auto, commercial umbrella insurance, SPICE, and surety bonds.

Each of these policies is designed to protect cleaning professionals from common accidents and other incidents such as property damage, theft, incomplete services, commercial auto accidents, and more.

If an employee or customer makes a claim against your business, janitorial insurance can protect you and your company from financial loss and potential bankruptcy.

What Does Janitorial Insurance Cover?

Your coverage will depend on the types of policies you decide to take out. Depending on the specific nature of your business and the types of jobs you take, you may or may not require some of the policies mentioned above.

With that in mind, a comprehensive janitorial insurance package will typically cover:

  • Personal or bodily injury
  • Theft
  • Property or equipment damage
  • Vandalism
  • Employee medical costs and missed wages
  • Commercial auto accidents
  • Unsatisfactory services

If you need additional coverage, umbrella insurance can make up for coverage gaps left by your existing janitorial insurance policies.

Benefits

Benefits of janitorial insurance include:

Coverage: Without the right janitorial insurance coverage, you and your company may be vulnerable to significant financial loss if an employee or customer makes a claim against you.

Professionalism: Having the right insurance coverage can make your customers feel more secure, allowing you to gain new customers and take on more projects.

Compliance: Certain insurance policies, like workers’ compensation, may be required depending on your state and local laws.

How Much Does Janitorial Insurance Cost?

The cost of janitorial insurance depends on several factors, including the types of customers you serve (i.e. residential, commercial, or industrial), your company size, your insurance provider, and more.

With that in mind, you can find janitorial insurance for rates as low as:

  • $29/month for General Liability
  • $39/month for General Liability + Property
  • $39/month for General Liability + Property + Workers Compensation

Types of Insurance Janitors May Need

Janitors, maids, and other cleaning professional should consider taking out the following policies to ensure complete coverage:

General Liability: Covers costs when an individual is injured due to an accident caused by you or your employees. May also cover property damage, product loss, and more.

Workers’ Compensation Insurance: Covers medical costs and missed wages for employees who are injured or become ill due to a work-related incident.

Surety Bond: Surety bonds are contracts that guarantee that you will fulfill your commitments to the customer. If you do not fulfill your obligations, the insurance company compensates the client.

Commercial Property Insurance: Covers equipment (e.g. vacuum cleaners, carpet steamers, etc.) and business property that is damaged by theft, fire, vandalism, or natural disaster.

Commercial Auto Insurance: Protects commercial vehicles and individuals involved in work-related auto accidents.

Commercial Umbrella Insurance: Offers supplemental coverage to make up for gaps left by general liability, commercial auto, and workers’ compensation policies. Can increase your coverage limits by $1 million increments.

Supplemental Property Insurance Coverage Endorsement (SPICE ): Protects you from extreme income loss if the facilities you clean cannot be serviced.

Tips for Buying

Keep these tips in mind when shopping for janitorial insurance policies:

Get quotes: The cost of janitorial insurance can vary greatly, so be sure to compare at least three to five quotes to find the best rates available in your area.

Review coverage: Be sure to carefully review your chosen policy for coverage and exclusions. Knowing what is and isn’t covered will help you avoid costly incidents in the future.

Know your local & state laws: Some states require businesses to have certain insurance policies, like workers’ compensation insurance. Be sure to review your local and state laws to ensure you have the required coverage.

FAQ

What is BOLI?
BOLI stands for bank-owned life insurance. It is a form of life insurance that is purchased by a bank and the bank is the beneficiary. These insurance policies are used as a tax-free method for funding employee benefits.

What does a janitorial service bond cover?
Janitorial service bonds, also called surety bonds, cover the property and possessions of your clients. They guarantee that your business will fulfill its obligations to its customers.

How much is insurance for a house cleaning company?
For maid and home cleaning businesses, general liability insurance typically costs between $374 and $696 in annual premiums. Of course, these prices can fluctuate depending on your business’ risk factors and coverage needs.

Summary

Janitors and other cleaning professionals face a variety of risks that can result in serious financial loss if they are not protected by the right insurance policy.

By understanding the different types and typical costs of janitorial insurance, you can find the coverage you need to protect your business at a reasonable price.