If you run a cleaning company, you may not think you’re at much risk. After all, you’re cleaning buildings and you wouldn’t think that’s a dangerous job. However, you may want to reconsider.
Here’s some of the risk a cleaning company faces and why your cleaning business definitely needs general liability insurance.
Just consider a few of these scenarios:
- You’ve just mopped the floor and a person slips and breaks their arm.
- A passerby carrying a hot cup of coffee trips on the cord of your vacuum cleaner and sustains a severe burn.
- Your employee accidentally spills bleach on a client’s new Persian carpet and it creates a huge white spot.
- Your vacuum cleaner bumps up against a piece of custom furniture in a client’s living room and it leaves a deep scratch.
These aren’t far fetched possibilities. Accidents occur frequently in the cleaning industry and they lead to property damage, injuries, and even fatalities.
According to the Bureau of Labor Statistics, falls, slips, or trips accounted for 62 of 299 fatalities in Florida in 2017 and only transportation incidents caused more deaths. Thirty-nine of those deaths were directly related to services to buildings and dwellings.
High Liability Risk
Any of the scenarios mentioned above could lead to a lawsuit and lawsuits aren’t uncommon. Property damage, injuries, and fatalities incur expensive settlements and hefty legal fees and court costs. That’s a financial strain no business can easily withstand, but it’s especially worrisome for small to medium-sized businesses.
Your clients may insist on general liability insurance to protect their interests. Plus a company with general liability insurance shows it’s professional.
What Does General Liability Insurance Cover?
General liability insurance is the absolute minimum coverage all cleaning companies should carry, whether you’re a sole proprietor or small, medium, or large commercial cleaner with many employees.
It can compensate your business for a legal defense, settlement, and court fees if you’re found negligent in a court case. Discuss an appropriate coverage limit and deductible with your insurance agent. Insufficient coverage will not protect you against a substantial loss.
Care, Custody, & Control Exclusion
This exclusion can directly affect a janitorial, housekeeping, or cleaning business. It assumes you are capable of conducting the basic functions of your business, so the insurer may not cover a loss if the issue was within your control.
Additional Insurance Considerations
As mentioned, general liability insurance provides basic coverage against losses for injuries and damage to the property of others. However, your insurance policy should protect you from all major risks.
As a result, it is very important you work with an agent so they can analyze your risk and find appropriate products within your budget. Most businesses also need property insurance or a Business Owner’s Policy (BOP) to protect their assets and Workers’ Compensation Insurance