What is the cost of cleaning business insurance?

According to Insureon’s quote data, the average cost of cleaning business insurance is between $96 and $114 per monthly. The cost of business insurance for a cleaning company can range from $96 to $114 per month, based on quote data from Insureon.

Take a look at how much insurance for cleaning businesses costs on average. Also, find out what factors are considered by insurers when calculating the premiums.

Cleaning Business Insurance Average Cost

The cost of cleaning business insurance varies significantly between insurers. Insureon’s data on commercial insurance markets shows the average cost of 11 major insurers.

* These quotes are based upon typical coverage amounts for $1 million per incident and $2 million in aggregate.

It’s important to remember that not all insurance providers offer the same coverage and benefits. One company may have a lower rate, but exclude certain coverages. Read the fine print and find out exactly what is included.

Factors Influencing Cost

When comparing the cost of general liability, BOPs and workers’ compensation insurance, there are several factors to take into consideration.

General Liability

General Liability Insurance will help cover the costs of your cleaning business if you are found responsible for third-party property damage, bodily injuries, personal injuries, or advertising injury.

The cost of a GL insurance policy is influenced by:

• Industry Insurers assign your business an insurance class code based on the work you do and where your business is located.
• Physical Business Location If you run your business from a commercial location, the insurers will ask about its size, condition and foot traffic. Insuring larger buildings that receive more foot traffic is going to be more costly. You could see your price increase if the condition of your building poses risks (e.g. An older building not up to code.
• Services Provided: The services you offer can increase the risk of your business, so insurers will ask about them. For example, Nationwide asks if you provide floor waxing, remediation work, restoration work, work in high-traffic properties, or work in hospitals.
• Size of your business Insurers consider the annual revenue of your company. A larger business usually means a greater risk. Insurance companies may also take into account the number of staff you have, and how much you spend on your payroll.
• Experience : You may want to consider the level of experience your business has and that of its operators. You may be able to get lower rates if you have more experience.
• Claim history Insurers can look at the past claims of your business to determine the likelihood that you will have a claim in the future. Insurers may ask about past losses or lawsuits, or if you have had your insurance canceled or not renewed in recent years for reasons like non-payment.
• Deductibles : Policy deductibles can also affect premiums. A higher deductible can often reduce your premium.
• Limits : General liability insurance policies have different limits. Your coverage costs more if you increase your limits.

BOP

A Business Owner’s Policy (BOP) is a combination of general liability insurance and commercial property coverage. This policy covers the building and its contents if they are damaged by an insured peril such as fire, theft or burst pipe.

Commercial property insurance costs are often determined by factors such as:

• Size: The larger your building is, the more costly it will be for you to repair or replace it in the event of a total loss. In turn, insurance is more expensive for larger properties.
• Value for your business property The value of the property in your building is a factor when calculating your insurance costs, because your policy covers damage and loss to property.
• How to value your property Insurers can offer compensation based on your property’s replacement cost, actual cash value or fair market value. Replacement cost policies have higher premiums, as they are designed to replace an item covered with a brand new item rather than reimburse you for its depreciated value.
• Location The location of the building is also a factor. The risk will be higher in areas that are more susceptible to crimes, fires or natural disasters.
• The deductible that you select will have a significant impact on your premiums. Higher deductibles are usually associated with lower premiums. 3

Workers’ Compensation

Workers’ Compensation covers the costs associated with work-related injuries or illnesses, such as medical bills and lost wages. The cost of coverage depends on a number of factors, including the location of your company, the number and type of employees covered, your payroll history, claims experience, as well as the work that your employees do.

Cleaning Business Insurance: Top Insurance Companies

• Contractors Bonding and Insurance Company
• Liberty Mutual Insurance Company
• Hiscox
• AmTrust
• ACUITY Mutual Insurance Company
• Rockingham Casualty Company
• The Hartford
• Clear Spring Insurance Company
• Nationwide Mutual Insurance Company
• United States Liability Insurance Group
• Travelers

Savings on cleaning business insurance

• Costs can vary widely from one insurance company to another. You can get the best policy by shopping around.
• Choose essential coverage The more coverage that you purchase, the higher your costs. Determine which types of coverage are essential and most beneficial for your business by assessing the needs. You may start out with general liability and upgrade to BOP later.
• Lower coverage limits : Higher coverage limits usually cost more. Consider lowering the coverage limits on some policies to get a lower premium.
• Consider raising your deductible : Increasing your deductible will reduce your premium costs.
• Ask for discounts on prevention. Insurers might offer you lower premiums, if they see that you have taken certain precautions like installing security or fire suppression systems.

What type of insurance do I need for my cleaning business?

Cleaning businesses can benefit from a variety of types of insurance, including general liability insurance, workers’ compensation insurance, commercial property insurance, business income insurance, and auto insurance.

General liability is a minimum requirement to protect your business from claims by clients and third-parties. If you have a business vehicle or operate from a commercial space, you may want to look into commercial auto and property coverages. A workers’ compensation insurance policy is usually required if you employ people.

What does business insurance not cover for cleaning companies?

BOPs or general liabilities policies don’t typically include coverage for workers’ compensation, commercial automobile insurance, data breaches insurance, and professional liability. You may need to purchase these coverages separately.

What is the best business structure for a cleaning company?

The best structure for a company that cleans depends on a number of factors. A sole ownership is the easiest option. It does not offer any protection to your personal assets. Choose a business structure that will protect you from personal liability.