Why Maid Services Need Insurance
More and more Americans rely on maid services to help them maintain their household cleanliness. As a maid services business owner, you know providing quality cleaning services is a top priority. But running a business also means you are responsible for operational decisions like buying insurance.
Customers trust you and your employees with their most valuable assets which opens the door to numerous risks. Buying insurance is a key way to protect you from risks, lawsuits, and claims against your maid services business.
What risks do you face?
- Theft Accusations: Theft accusations occur daily. Whether you provide the cleaning services and know you didn’t steal the item or your employee steals something but denies it, you can be held financially responsible for the lost valuables.
- Property Damage: Proper cleaning services require equipment and chemical cleaners that can damage property. If a bottle of cleaner spills and stains a rug or you move too quickly and break a vase, you are responsible for replacing it. What happens when these are valued at a few thousand dollars?
- Car Accidents: Whether you have a business vehicle or employees that drive their personal vehicles while working, your maid services business can be sued for damages caused by auto accidents.
- Injuries Resulting from Services: When somebody falls on a wet floor you just cleaned and needs medical attention, you can be responsible for their medical bills. If the injury is severe and requires them to miss work; you are may also required to pay lost wages.
- Injured Employees: Bigger maid services companies employ individuals to provide the cleaning services. With the amount of moving and bending, it is easy for them to injure themselves on the job.
While this list of risks is not all-inclusive, it is important to understand exactly what your maid services operation can be financially responsible for. Not having the right insurance in place can be the difference between being open and being forced to go out of business.
What Types of Coverage Do You Need?
There are several insurance options available for maids and maid services businesses, as your needs may change based upon your operations. Those that have employees may need Worker’s Compensation and EPLI in addition to General Liability. If you contract employees, bonds may be required in some cases.
General Liability
Pays costs to replace or fix damage to a customer’s property, or medical and other expenses resulting from somebody being injured because of your services.
Employee Theft
When a customer sues your business because an employee stole their property, you need special coverage to pay the costs. Some companies add this coverage on as an endorsement to their General Liability or Business Owner’s Policy.
Commercial Auto
Pays costs associated with car accidents including damage to your company vehicle and liability for injury or property damage.
Non-Owned Auto
If employees use personal vehicles to travel to jobs and cause an accident, third parties can still file a lawsuit against your maid services business. Non-Owned Auto insurance is an extra layer of coverage that pays the associated costs, like property damage, settlements, and defense.
Worker’s Compensation
Many states require Worker’s Compensation insurance once you have three employees (though the minimum number varies by state). It pays medical expenses and lost wages when employees suffer an on the job injury.
How Much Does Maid Services Insurance Cost?
Depending on the type of coverage and insurer, insurance for maids varies. Many insurers review your policies and procedures for hiring, whether you use contracts, past claims history, and length of time in business to calculate risk and premium. You can receive a free insurance quote now by completing the form below.
What type of insurance does this industry need?
- General Liability: This policy protects your business in case of third party claims, such as bodily injury or property damage. For example, the common "slip-and-fall" claim would be covered by your General Liability policy. General Liability insurance is often considered to be the core coverage, particularly for businesses that regularly physically interact with customers or sell physical goods. In addition, many businesses have a contract, like a loan or a lease, requiring that they have this coverage.
- Workers Compensation: Workers Compensation covers an employee's lost wages and the cost of resulting medical treatment if they suffer a work-related injury or disease. It also covers services needed to help the employee recover and return to work. Workers Compensation coverage is mandatory in most states. The number of employees after which it's required differs by state, but you will generally need coverage once you have employees.
- Commercial Auto: Commercial Auto insurance provides coverages such as liability, collision, comprehensive, medical payments and uninsured motorist coverage. Any vehicle on the road must be insured, and any incidents that occur while a vehicle is being used for business purposes may not be covered by a personal auto policy. That's why it is so important to make sure you have Commercial Auto insurance for any vehicles owned by the business.
- Inland Marine: Inland Marine insurance covers goods in-transit either on land or through shallow water, as well as certain types of movable property (such as medical equipment). If your business has valuable equipment which regularly needs to be moved, then this can be a core policy to protect your property.
- Hired & Non-Owned Auto: This insurance protects the business in the case of any incidents involving a vehicle that has been hired by the company to be used for business-related purposes. It also provides coverage in the case your business uses other vehicles which are not property of the business, such as having delivery drivers use their own vehicles. If your company hires vehicles or allows employees to use their own vehicles for business purposes, you will want to consider this insurance.
- Umbrella Insurance: Umbrella insurance offers excess liability protection in the case that your General Liability, Commercial Auto Liability, and/or Employer's Liability coverage is insufficient. It essentially acts as a "back-up" plan, providing additional financial protection in the case that your business faces a particularly large claim that exceeds a single policy's limits. This policy can be particularly valuable for a business that faces a variety of risks and has multiple liability policies.
