Janitorial Insurance for Janitors, Maids and Cleaning Professionals
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What Insurance Do Janitors, Maids and Cleaning Professionals Need?
A Fiduciary Bond (or Surety Bond) protects a fiduciary - someone who is granted power over another person’s interests or assets via a will or contract - from being sued for alleged fraud, embezzlement, or dishonest acts.
Workers Compensation covers your employees' medical costs and lost wages while recovering from a work-related injury or illness. The employee gives up the right to sue your company in return for receiving cash and benefits from Workers Compensation. In some states it’s mandatory for businesses!
Business Interruption Insurance protects your small business if impacted by a covered risk. It'll cover the costs in replacing lost income and paying for additional expenditures. Also known as Business Interruption Coverage, this policy is usually part of your BOP (Business Owners Policy).
Commercial Auto Insurance covers your cars, trucks, and vans used in your business. It covers the costs from vehicle damage in collisions, theft, vandalism and weather damage. It also covers medical expenses for to injured parties.
Umbrella Policy adds an extra layer of protection to professionals if a serious event or cumulative claims exhaust your current polcy limits. It also covers you for events that would otherwise be excluded from your other policies.
Commercial Property Insurance will provide coverage for your properties in case damage renders them impossible to rent or lease.
General Liability Insurance protects your small business against claims of third-party bodily injury and property damage, reputational harm and advertising injury. It covers medical bills, repair costs & legal fees.
Frequently Asked Questions
What variables can affect price of Janitor Insurance?
- Commercial vs. Industrial vs. Residential: Cleaning and Maintaining Commercial buildings is riskier than Cleaning Residential buildings.
- Waxing floors: if a significant portion of your revenue comes from waxing floors, your Insurance will probably be higher
- Your company size: the more business you do, the more likely you are to have an accident
How much is insurance for a House Cleaning Business?
For maid and home cleaning businesses, general liability insurance may be needed to cover the costs of potential lawsuits by a client. General liability insurance can also cover lawsuits over bodily injuries and advertising injuries. On average, this type of insurance costs maid/house cleaning businesses $374 to $696 in annual premiums. It is important to note that quotes can fluctuate based on the size of your business, risks involved, and other factors.
How much is insurance for a Janitorial Business?
Determining a specific cost of insurance for a janitorial or cleaning business isn’t an easy task and it may be hard to find small business insurance. Depending on your cleaning business, your risks could be viewed differently by insurance companies. Key factors include your insurance and bonding claims history, when you started your business, and safety protocols for your employees. On average, cleaning businesses are looking at: $24 minimum monthly for low risk businesses, $42 median or $82 average monthly cost for average size businesses.
What is a BOLI?
A “BOLI” known as bank-owned life insurance, is a form of life insurance purchased by banks where the bank is actually the beneficiary, and/or owner. This form of insurance serves as a tax shelter for the administering bank, as it is a tax-free funding scheme for employee benefits. In other words, it is a tax efficient method that offsets employee benefit costs whereas cash surrender values grow tax-deferred, providing the bank with monthly bookable income.
What is COLI and BOLI?
In contrast to BOLI, which is bank-owned life insurance and more specifically a tax-free funding scheme for employee benefits; COLI is corporate owned life insurance which is an investment alternative to Mutual Fund scenarios, allowing a corporation to accumulate a tax-deferred asset. The company purchases and owns a life insurance policy on a key employee and is the primary beneficiary, also receiving tax-free benefits. The corporation pays non-deductible premiums and receives tax-deferred cash values.
What does a janitorial service bond cover?
Janitorial service, or “surety” bonds cover the property and possessions of your clients whether you have a janitorial, cleaning or housekeeping service. This type of bond mainly covers theft by dishonest employees, but do note, it does not cover property damage. Though a janitorial bond is usually optional, certain types of cleaning business may require some form of a service bond. Overall, a janitorial surety bond shows your clients you can be trusted.