From slip-and-fall injuries to accidental property damage, any number of unpredictable events could put your janitorial services business at risk. Having the right business insurance coverage in place can give your company the financial security it needs to continue operating in the event of a disaster or lawsuit.

What insurance coverage do I need for my janitorial services business?

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

General Liability Insurance

General liability insurance covers common risks that are important for almost every business, including third-party bodily injury, personal injury, or property damage. Since janitorial services companies typically perform their work at other locations, there is a risk that a customer’s property could be damaged during the course of your work. If a third party is injured on your company’s property, your business could also be held liable. General liability insurance provides coverage for the potential lawsuits your business could face if an accident were to happen, as well as any medical payments for injured individuals. This type of insurance also covers unintentional non-physical injuries to third parties, including libel, slander, copyright infringement, and more.

Examples:

• Property damage: While cleaning a tech company’s offices, an employee of yours accidentally damages an expensive 3D printer. Your general liability policy would cover the damages.
• Bodily injury: A client visits your office for a scheduled meeting with your sales team. While walking to the meeting room, the client slips on some wet flooring, injuring his wrist in the process. General liability insurance would cover any medical expenses for the injury, as well as any damages if the client sues.
• Personal and advertising injury: Your company launches an advertising campaign using artwork that looks similar to the work of a professional illustrator. You are sued for copyright infringement. Your general liability policy would cover the lawsuit and any settlements.

Workers’ Compensation Insurance

Workers’ compensation insurance is a key coverage for janitorial services companies because the physical nature of janitorial work may lead to a higher risk of employee injuries. Workers’ comp provides funds to cover employees’ medical expenses and lost income if they are injured or fall ill as a result of their work. In the unfortunate event of a work-related employee death, workers’ comp can also provide benefits for the employee’s surviving dependents. In some states, workers’ comp can also provide for vocational training and job placement for injured employees. 

Workers’ comp is regulated at the state level, meaning each state has different requirements and policies regarding what types of companies need to provide workers’ comp, the level of benefits, and qualifying injuries. However, in almost every state, workers’ comp is legally required for companies who regularly employ others. It’s important to check your state guidelines, as the penalties for non-compliance could involve heavy fines or even imprisonment.

Example:

• While cleaning a high shelf, one of your employees falls off a ladder and sustains a neck injury, rendering him temporarily unable to perform his regular job duties. Your workers’ compensation insurance would pay for the employee’s medical expenses and a portion of lost income while he is recovering. 

Commercial Auto Insurance

Just like you need personal auto insurance for your own personal vehicles, for any company vehicles that your business owns or leases, you’ll need to obtain commercial auto insurance. Commercial auto insurance is a critical coverage that will pay for damages if you or your employees are at fault in a collision while driving a company vehicle. It will cover medical costs if the other vehicle’s occupants are injured as well as paying for damages to the other vehicle. Commercial auto insurance also covers your vehicles if they are physically damaged or lost due to theft, vandalism, collisions, or other hazards. 

Example:

• While driving a company truck to a client location, your employee skids on ice and drives into a nearby business’s wall. Your commercial auto policy would pay to repair the wall and your vehicle. 

Fidelity Bond Coverage

Fidelity bonds can provide coverage for your business against employee theft, fraud, or dishonesty. Also known in the cleaning industry as janitorial bonds, janitorial service bonds, or cleaning bonds, fidelity bonds can be crucial for companies providing janitorial services. In fact, for many of your clients, it may be a requirement of doing business. 

If an employee of yours steals customer property while working, a type of fidelity bond called a business service bond can provide funds to reimburse the client for any losses. In addition, if an employee of yours steals from your own business, whether it be through embezzlement, fraud, or other means, a fidelity bond known as an employee dishonesty bond can cover your company’s losses.

Example:

• A group of new employees is sent on assignment to clean the offices of a longtime corporate client. They end up stealing computer equipment from the client, and the act is caught on a security camera. Your business service bond would provide funds for the client to recoup losses.

Commercial Property Insurance

If an unexpected disaster damages your company’s physical property, commercial property insurance will reimburse you for the loss. This type of insurance can provide protection for your business property, including buildings, furniture, equipment, and tools. Commonly covered perils include storms, hail, fire, vandalism, and water damage. It’s important to note that your company’s vehicles would not be covered by commercial property insurance; instead, they would be covered under a commercial auto policy.

Commercial property insurance covers the following:

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

Example:

• A severe storm causes a tree to fall on the roof of your office building, damaging it. Your commercial property insurance would provide funds to repair the roof.

Additional Coverage

• Inland marine insurance provides financial protection for your business’s property that does not remain at a fixed location and is not covered by a standard commercial property policy. This may include high-value, specialized cleaning equipment or tools.
• A business owner’s policy can be a great choice for small and midsize businesses. It combines general liability, property, business income, and extra expense coverage into a single package, which is often cheaper than purchasing similar coverage separately.
• Business income coverage will reimburse you for lost income and operating expenses if your business is forced to cease operations 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 janitorial 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

There are many risks that could harm your janitorial services company, from property damage or physical injury to auto accidents or fires that destroy your property. Business insurance can provide financial protection that will help your business cope in the event of such unexpected disasters. When you purchase the right coverage, you and your clients will feel confident in the knowledge that your company will continue to operate even if a major incident arises.