House cleaning businesses could be exposed to a variety of risks, whether it’s unintentional property damage or physical injury that occurs in the course of their work, auto accidents that take place in company cars, or unexpected disasters like a fire. It’s important to consider purchasing business insurance coverage to financially protect your company from these hazards.

What insurance coverage do I need for my house cleaning business?

There are many types of insurance coverage to consider, but these policies are particularly relevant to house cleaning services:

General Liability Insurance

General liability insurance is a particularly crucial coverage for house cleaning businesses as it protects your business from third-party bodily injury and property damage liability. If your employees damage a client’s property or cause a client to be injured during the course of their work, your company could be sued. No business is completely safe from accidents, and general liability can protect you when unfortunate events occur. General liability insurance also includes a personal and advertising injury component, which can cover third-party non-physical injuries and reputational damage from libel, slander, copyright infringement, and more.

Examples:

• Property damage: One of your employees accidentally spills a bleach solution onto a client’s antique rug, badly damaging it. Your insurer would cover the damages. 
• Bodily injury: While your employees are cleaning a client’s home, the client trips over a mop that was accidentally left out. The client injures her hip and must receive medical treatment. Your general liability insurance would pay for medical expenses and legal fees if the client sues.
• Personal and advertising injury: Your house cleaning business launches a new slogan for use in local advertisements. Unfortunately, this slogan turns out to be almost identical to the slogan of another company. They sue you for copyright infringement. Your insurer would pay for legal defense and any settlements.

Workers’ Compensation Insurance

Workers’ compensation insurance covers employees’ medical expenses and lost income if they suffer an occupational injury or disease. Workers’ comp also provides financial benefits for an employee’s dependents in the case of a work-related employee death. In almost every state, workers’ compensation is a required coverage, and there may be serious fines and penalties for companies that do not secure adequate coverage. 

For companies whose employees perform physical labor and are at higher risk of injury, workers’ compensation is an especially crucial coverage, providing critical financial benefits during an employee’s recovery period and potentially for life, if an employee suffers a permanent disability that reduces his or her earning ability.

Example:

• Your employee falls off a ladder cleaning a chandelier at a client’s home. She injures her back and is unable to work while she is recovering. Worker’s comp would pay for her medical bills, a portion of lost income, and any physical rehabilitation expenses during her recovery period. 

Commercial Auto Insurance

Many house cleaning businesses heavily depend on company vehicles that employees use to provide services. If your business owns or leases vehicles or if your employees use their own personal vehicles for business purposes, commercial auto insurance is a key coverage that is legally required in most states. If your employees are involved in a car crash, commercial auto insurance can provide coverage for physical damage to vehicles, third-party bodily injury, and property damage. Commercial auto insurance can also provide coverage for damage to your vehicles caused by covered perils, including theft, falling objects, fire, and more.

Example:

• Your employee is driving a company van to a client’s house when he accidentally runs a stop sign and knocks down a pedestrian. The pedestrian suffers a fractured wrist. Your insurer would provide funds to cover the pedestrian’s medical costs and any legal expenses if your business is sued. 

Commercial Property Insurance

If your business operates from a retail location or commercial office space, you’ll likely need commercial property insurance. This coverage can help protect the value of your business property, providing funds to replace or repair damaged property in the event of a fire, storm, explosion, or other covered peril.

Commercial property insurance covers the following:

• Buildings belonging to or leased by your company
• Contents of the building, including equipment, office furniture, and tools
• Property of others while it is under your care, custody, or control

Example:

• A toaster in your office causes a small fire that sets off your fire sprinklers. A number of computers suffer damage. Your insurer would pay for them to be replaced.

Fidelity Bond Coverage

Fidelity bonds for the cleaning industry may also be known as janitorial bonds, janitorial service bonds, cleaning bonds, or other variations. This coverage will protect your company if your employees commit theft, fraud, or other dishonest acts. In the home cleaning business, your employees are often given unrestricted access to client homes, opening up the possibility of an employee stealing from a client. Fidelity bonds can provide financial protection if such an incident occurs, and they can also protect your company from internal theft or fraud committed by an employee.

Example:

• While cleaning the home of a longtime client, a newer employee at your company steals jewelry from the client’s bedroom. Your client has video evidence of the incident occurring. When you confront your employee about the theft, he says he already pawned off the jewelry. Your business service bond would reimburse the client for his stolen jewelry.

Additional Coverage

• Inland marine insurance provides financial protection for your business property that does not remain at a fixed location and is not covered by a standard commercial property policy. This could include equipment, tools, and other items. This is an important coverage to consider if your company owns valuable equipment that is transported from location to location. 
• A business owner’s policy combines general liability, property, business income, and extra expense coverage into a single package. For small or midsize companies, this type of insurance could help you obtain a wide range of coverage. Premiums for a business owner’s policy are typically cheaper than the cost of buying each coverage separately.
• Business income coverage will reimburse you for lost income and operating expenses if your business is forced to close due to a covered peril, such as fire, storm damage, or other property damage.

Pricing and Quotes

Pricing for business insurance will vary based on the type of insurance coverage and the risk profile of your business. Insurers consider factors such as:

• Business size
• Industry
• Location
• Number of employees
• Claims history

Businesses with higher risks will have higher premiums than those deemed lower risk. For example, a house cleaning business with a history of frequent claims will face higher premiums. Premiums also rise as you increase the limits of insurance. Different insurance companies have different models for rating risks, so it is worth comparing pricing across different insurers.

In order to get an accurate estimate on pricing, it’s best to get a quote from a reputable insurance company. Below we’ve highlighted a few of our trusted partners who offer coverage for a variety of cleaning businesses:

Provider	General Liability	Professional Liability	Business Owner's Policy
Embroker	??	??	??
CoverageSmith	??	??	??
CoverWallet	??	??	??
Hiscox	??	??	??
Thimble	??	??	??

Final Word

House cleaning businesses could be held liable for many significant risks. From accidental damage to a client’s property to auto collisions or unexpected disasters like a fire, there are many incidents that can have a major impact on your company’s finances. It’s a good idea to consider your business’s needs and purchase insurance that will financially protect you in the event of an unforeseen catastrophe or lawsuit.