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Insurance Considerations for Cleaning Businesses

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To protect your cleaning business or organization against substantial financial losses, it’s crucial to carry adequate insurance coverage. You never know when an unfortunate incident will occur, so it’s best to be prepared at all times—and having the right cleaning services insurance is an excellent approach to ensure your business is protected.

Potential risks in this industry include injury to employees due to accidents, damages to property, complaints from clients, accidents involving commercial vehicles, and other unforeseen incidents that can cost a cleaning business a significant amount of money. Just imagine the losses you’d face with even one lawsuit. Aside from the massive blow to the finances, it can damage your reputation or worse, cause your company to shut down.

Owners of a cleaning business may not be familiar with the world of insurance and choosing the right insurance may be overwhelming. To help you with the selection process, here are several factors to consider:

Determine the Potential Risks

Every business varies in terms of vulnerabilities or risks that can impact operations. Before deciding on a plan, assess the risks associated with your business. Risks can include damage to property, bodily injury, damage to a company vehicle, etc. Knowing the different challenges that can put a dent to your finances will significantly help you to identify the right insurance policies.

Understand Which Policy Is Best for You

Each type of coverage caters to a specific requirement or potential risk. For instance, there’s:

  • General liability insurance, which protects a cleaning business against huge losses due to any claim related to personal injury or property damage.
  • There’s also commercial property insurance; this covers the physical assets of the business, like cleaning equipment and supplies.
  • A businessowners policy alleviates the need for two policies by combining general liability with commercial property coverage into one policy.
  • Most states require companies to carry worker’s compensation insurance. This aims to cover the medical and rehabilitation costs if an employee sustains work-related injuries.
  • You also may want to consider getting a commercial auto policy to cover any expenses related to repairing or replacing vehicles in case of an accident.

Consult a Reputable Insurance Provider

Since insurance may be a whole new arena for a business owner or facility manager like you, it’s best to work with an insurance provider that has the knowledge, expertise, and experience in assessing business risks and recommending the right insurance products. There are so many insurance providers that offer different types of coverage. To make sure that you’re working with a reputable one, do your research. Take a look at several insurance providers and look at their offerings. Read online reviews and seek feedback from fellow business owners. A good insurance provider will walk you through the ins and outs of insurance and help you decide which insurance to buy.

The Cheapest Option Is Not Always the Best

Some business owners, especially those who are new to the industry, see insurance as an additional expense. They may not prioritize insurance, and when they do buy, they choose the cheapest option available. The reality is insurance is a necessary investment that will protect the business during unforeseen incidents. While price is important, it should not be the end-all deciding factor. Buying the most expensive option does not necessarily mean the policy will cover the business against all risks. The key is to assess your organization’s particular vulnerabilities and choose the right type of policy per risk. This will ensure your business is adequately covered.

Read and Understand the Terms and Conditions

When looking at a document, it’s so easy to browse through it and sign your name without understanding its content. When it comes to insurance, business owners cannot afford to skip this crucial step. Make sure to read the fine print and understand the exclusions, inclusions, premiums, limits, and deductibles that come with your policy. After all, it’s imperative to know what you’re paying for to avoid the inconvenience of unexpected fees, or worse yet, uncovered losses later on.

Prepare All the Necessary Documents

To make the process as stress-free as possible, make sure to have all the required documents on hand. In general, you need to provide information such as your contact details, the number of your employees, estimated yearly profit, potential risks, lease contracts, permits, and type of vehicles used for business purposes. An insurance broker can guide you through the end-to-end buying process, and they will let you know what documents to prepare for the insurance application.

Accidents can happen to anyone, and no one can predict them. The best you can do is to plan and prepare. Once you have your insurance coverage, you will be able to focus on aspects that matter to your business—your products or services, clients, employees, as well as existing and potential customers.

 

Jim Loughlin

Sales Director, CoverWallet

Jim Loughlin is an insurance industry veteran with more than 20 years of experience. He is sales director at CoverWallet, a tech company that makes it easy for businesses to understand, buy, and manage insurance—all online and in minutes.

 

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