House Cleaning Business Insurance: A Buyer’s Guide
- December 8, 2019
- By: Vonigo
A buyer’s guide to house cleaning business insurance: Do you need it? Which type do you need? And how much will it cost? We’ll explain everything.
Insurance isn’t exactly an exciting topic. Among all the concerns that a house cleaning business operator has, insurance is among the least exciting. Still, having proper insurance could mean the difference between success and failure. When you need it, insurance can help save your business, but you have to be prepared well in advance and have a good policy in place.
Here’s what you need to know about house cleaning business insurance.
Do I Actually Need House Cleaning Business Insurance?
Insurance is one of those things that you hope you’ll never need and you still must pay for. In a perfect world, you will never need to file an insurance claim. A common maxim in the world of insurance is that it’s “better to have it and not need it than to need it and not have it.”
The kinds of events or mishaps that could lead to a claim are diverse and often unexpected. Your cleaners could be accused of stealing. They could inadvertently damage a customer’s property, either through an accident or by using the wrong kind of cleaning product. Or they might knock over a costly vase or lamp that is difficult to replace.
These are only examples and they happen often enough that having a policy in place to account for them is prudent for all house cleaning businesses.
What Kind of Insurance Does My Cleaning Business Need?
Depending on the type of business you operate, you may even require several different types of insurance.
We’ll start with the basics: business owner’s policies. These are plans that are designed for owners of cleaning companies and include property and general liability insurance. Your business owner’s insurance policy covers your building and everything inside it. Things like your computers, furniture, and other tools. It will cover not only the replacement value of your hard goods but you can also be covered for lost income if a flood or fire prevents you from operating. These policies also provide liability insurance to cover you in the event you are sued by a client or third party.
How Much Will Insurance Cost?
Cleaning business insurance doesn’t need to be expensive. Do your research and you can often get the coverage you need at a price you can budget for.
A cleaning business owner’s policy can cost between $500 and $1,000 a year. Other types of insurance, such as coverage for your vehicles will be extra, but a business owner’s policy should be your largest expense.
It’s not a small amount of money but think of this extra expense as an essential cost of doing business. Good insurance coverage can help you survive events that might otherwise have disastrous consequences to your business.
How Can I Shop Smart for House Cleaning Business Insurance?
Shopping for business insurance means making a lot of key business decisions. You’ll have to consider your risk tolerance, your financial situation, and the business model of your company.
For example, if your business is financially stable and have a lot of cash on hand, you may choose a policy with lower premiums and a higher deductible. If your business has a large team of employees, policies for workers’ compensation and bonding insurance should also be considered.
Choosing the right insurance provider is only half of the challenge. An insurance agent can help with this, or you can deal directly with an insurance company of your choosing. Either way, find a policy with a company that is familiar with your type of business and the risks involved. They should be well-versed in the nuances of the underwriting process. As a rule, the more detail you have to provide in order to buy a policy, the more comprehensive your policy may be. The absence of that detail could mean that your policy doesn’t address some of the key concerns of a house cleaning business.
As the business owner, the answers to these questions lie with you. Do your research and approach the insurance shopping process with enough information to make informed decisions that are in the best interests of your company.
Insurance Helps Your Business Last
If you’re careful about choosing your insurance, it should remove a lot of the stress that comes with operating your business. Comprehensive insurance coverage removes ongoing concerns about accidents or lawsuits that might result. You can proceed with growing your business and focusing on profitability, which gives you a greater chance of success over the long term.
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