How Much Does Commercial Cleaning Insurance Cost?
Last Updated: February 01, 2022
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You probably don't think of commercial cleaning as a risky business. But, when you're constantly responsible for the care of someone else's property it can be. That's why general liability insurance is a must have.
Accidents and mistakes can and do happen from time to time. General liability insurance protects your company's assets if you are sued for personal injury or property damage. Commercial cleaners are sued more often than you might think.
General liability insurance is available for everything from self-employed cleaners to cleaning companies with dozens of employees. It's available for domestic cleaning companies, gutter cleaners, carpet cleaners, and school and office cleaners, to name just a few.
What General Liability Insurance Covers #
General liability insurance for commercial cleaners covers all of the following - and more:
- Damage to the property being cleaned
- Failure to secure a customer's property
- Treatment risks
- Loss of a customer's personal property, including keys or valuables
- Misuse of a customer's property
If you are sued, general liability insurance will cover the cost of the damages or settlement, including attorney fees, up to the maximum of your policy limit. If you buy a $1 million policy, the insurance company will cover up to $1 million of the costs.
If the damages exceed your policy limit, you're on the hook for the balance. That's why it's important to err on the safe side when it comes to coverage limits. You can also purchase what's known as an umbrella policy to cover any remaining fees or damages that are not covered by your general liability insurance.
Commercial Cleaners Insurance Average Costs #
The rate you pay will be influenced by a number of factors - the type of work you do, the size of your company, your company's track record with accidents, etc. In determining your rate, the insurance company will want to know things like whether you do window cleaning or floor waxing to assess how much coverage you need.
Most general liability insurance policies cost $1,000 or less for a year of coverage. A $1 million policy usually costs $300 to $1,000 per year, while $2 million worth of coverage runs in the $500 to $1,300 range. You'll most like be asked to make an initial “premium” payment of a few hundred dollars. The rest of the payments will be spread out over nine or ten months.
Rates can also be influenced by your geographic location. Courts in some states have a history of awarding higher damages in personal injury and property damage cases. Your insurance company will consider that in assessing risk. For more specific information on general liability insurance in your state contact your state insurance department.