What Administrative Services & Building Maintenance Are All About:
Building maintenance is a fast growing industry. However, those in the business may recognize the sometimes precarious problems that can arise. Key among these is the need to protect your workers from situations that can occur on the job site.
If your company handles administrative services, you’ll find there is significant concern regarding the handling of documents that contain personal information on both customers and employees.
In either case, your company will be working in and for another business. As a company contracted to do work for others, certain types of insurance should help protect you and your employees when and if claims against your business arise. With so many unknown variables, finding the correct insurance policies to purchase can be difficult. Read on to understand what coverage you need.
Who Needs Administrative Services & Building Maintenance Insurance?
If your business handles the administrative duties for another company, your company will need to be insured against claims of negligence. Many state laws will hold both the administrative services company and the company they are contracting with liable for certain claims.
Building maintenance and janitorial service companies also have unique concerns. The safety of your workers while on the job site is undeniably important. You should also be concerned with insuring against the potential for property damage or even stolen items. Typical types of Administrative Services and Building Maintenance Insurance include:
- Janitorial Services (~50,000 businesses in the U.S.)
- Building Maintenance Services (~70,000 businesses in the U.S.)
- Administration and Support Services (~500,000 businesses in the U.S.)
Still not sure what you need?
CoverWallet's Insurance Checklist , you'll find a list of insurance types needed for your specific business or industry.
What Types of Insurance Do Administrative Services & Building Maintenance Companies Need?
The insurance your business needs will depend on whether your company handles administrative services or building maintenance. For each, the types of insurance you should consider depend on the nature of the services you are providing to your clients.
General Liability will cover two key areas:
Property Damage (for building maintenance services): This type of insurance will help insure your company in cases where one or more of your employees has caused damage to property on the job site. In most cases, your client will be the one making this claim against you. However, there are situations where an employee may damage property not belonging to your client. In this scenario, the client may pass these costs off onto you with a separate claim for compensation.
Bodily Injury (for building maintenance services): Depending on the type of maintenance your business is providing, there may be situations in which your employee’s actions lead directly to someone else’s injury. This insurance will help cover costs should this unfortunate situation arise.
When Should You Get General Liability Insurance?
Immediately. Due to the nature of the business, building maintenance companies, in particular, should ensure that this is one of the first insurance policies they purchase.
If one of your employees accidentally knocks over and damages an expensive piece of equipment belonging to your client, General Liability Insurance will cover the cost your business will incur as a result of a claim.
Other Things to Note...
General Liability Insurance policies focus primarily on property damage and bodily injury. Many add-ons exist that extend beyond these areas, including coverage for Employee Dishonesty, which specifically insures against dishonest acts committed by employees.
The risk of injury while on the job will always be an issue, especially for building maintenance companies. Workers Compensation can be expensive, and insurance policies that cover these claims can go a long way toward alleviating this expense.
When Should You Get a Workers Compensation Plan?
When and if you need to purchase this plan depends on where you primarily conduct business. Excluding Texas, every state requires businesses to purchase Worker’s Compensation Insurance. Factors that determine whether a business must purchase this policy can include the number of individuals a business employs.
If an employee slips and falls on the job as a result of completing required duties, most states require the business to cover that worker’s lost wages. Workers Compensation Insurance will offset those costs for the business.
Other Things to Note...
Worker’s Compensation is not a substitute for health insurance. Purchasing a Workers Compensation Insurance policy may be required, but health insurance policies are not legally required. However, regulations stipulated in the Affordable Care Act will still leave you on the hook for penalties if your business is otherwise required to purchase a health insurance policy for your employees. Purchasing Workers Compensation Insurance will not count as a supplement for these purposes.
- Products and Equipment: Insurance for important goods or equipment that you business must transport over the road
When Should You Get Inland Marine Insurance?
Inland Marine Insurance will only be necessary if your business regularly transports goods or equipment over roads and highways.
- If a vehicle transporting your equipment overturns on the road, the equipment may be damaged or broken. Inland Marine Insurance will cover the cost of this equipment.
Other Things to Note:
- An Inland Marine Insurance policy will not cover the loss of a vehicle in an accident. While it will cover the equipment that is damaged or broken, it will not provide coverage for the vehicle itself.
Commercial Property Insurance provides coverage for two important areas:
Physical Properties: This insurance provides coverage for business properties such as buildings, offices and warehouses
Physical Assets: Commercial Property Insurance is designed to cover the potential loss of your business’ necessary equipment or furniture.
When Should You Get Commercial Property Insurance?
You should purchase this type of insurance once you begin registering property and/or assets to your business.
- If valuable tools are stolen from your business after a break-in, you may have a hard time replacing them. Commercial Property Insurance will cover the cost of replacing the equipment.
Other Things to Note:
- Commercial Property Insurance will typically only cover property and assets that are written into the policy. Make sure all necessary properties and pieces of equipment or furniture are clearly identified and assessed when obtaining this policy.
Other Insurance Types to Consider...
- Commercial Vehicle Auto Insurance (for building maintenance services): If your business owns and operates several company vehicles, consider purchasing Commercial Vehicle Auto Insurance specific to the type of vehicles your company owns.
- Hired and Non-Owned Auto Insurance: Any business whose employees regularly rent vehicles or use their personal vehicles should purchase this insurance. Hired and Non-Owned Auto Insurance provides coverage for property damage and bodily injuries that can occur while using such vehicles.
- Surety Bond: A Surety Bond will help service-oriented businesses provide compensation to their customers should they fail to properly deliver contracted services. In some cases, a Surety Bond is a required purchase in order to obtain a business license. The state or local licensing board will act as the third party to oversee complaints.
How Much Does Insurance Cost?
All insurance types are different. However, the costs for each are almost always dependent upon the number of employees that are covered under the policy, as well as other risk factors. Certain businesses are more likely to make a claim, and this will have a direct effect on premium costs.
Getting a quote for each type of insurance you are looking to purchase is the most accurate measure for how much any insurance policy will cost.