Janitorial Insurance

Several factors can affect the cost of janitorial insurance and janitorial bonds, including:

• Business size and annual revenue: Larger janitorial companies typically pay more for insurance because they take on more clients, more contracts, and have a greater overall risk exposure. Higher revenue can also increase the likelihood of claims, especially for businesses servicing multiple locations each week.
• Number of employees and payroll: Businesses with employees usually pay more for workers’ compensation insurance because premiums are partially based on payroll size and job risk. A solo cleaner will generally pay less than a company with a full cleaning crew.
• Types of cleaning services provided: The specific services you offer can impact your level of risk. For example, janitors who handle floor waxing, industrial cleaning, pressure washing, or hazardous cleaning materials may pay higher premiums than businesses providing basic office cleaning services.
• Types of properties serviced: Insurance costs can vary depending on where you work. Cleaning medical offices, schools, warehouses, or large commercial buildings may involve greater liability risks than servicing small offices or residential properties.
• Value of cleaning equipment and business property: Businesses that own expensive cleaning equipment, tools, supplies, or company-owned property may pay more for coverage that protects against theft, vandalism, or property damage.
• Coverage limits, deductibles, and additional insured requirements: Choosing higher policy limits generally increases premium costs, while selecting a higher deductible can lower monthly premiums. Many janitorial contracts also require additional insured endorsements, which can affect the overall cost of coverage.
• Claims history and years in business: Janitorial businesses with prior insurance claims may face higher premiums because insurers may view them as a greater risk. On the other hand, established businesses with a strong safety record may qualify for lower rates.
• Types of insurance policies purchased: The more coverage you purchase, the higher your total insurance costs will be. Many janitorial businesses combine policies such as general liability, workers’ compensation, commercial auto, bonding, and a business owner’s policy (BOP) for broader protection.

A janitorial bond protects your clients from dishonest employees, such as a janitorial worker who steals client property or those who complete an illegal funds transfer.

While most state laws don't require cleaning companies to purchase janitorial bonds, there are several reasons why you may carry one for your business:

• Get licensed. Some states may require one to get a cleaning business license. And, cities and counties sometimes have additional licensing laws and requirements, which could include a bond.
• Sign a contract. Clients might ask your company to carry a bond or provide a certificate of insurance before they'll allow your employees on their premises. This is especially true for government entities and larger clients that might employ your business.
• Attract new clients. Customers typically choose to work with a bonded and insured company over one that doesn't carry this protection. It shows clients your business is reliable and guarantees reimbursement in the event of theft.

It's important to note you may also see this kind of bond referred to as a surety bond or a fidelity bond.

With Insureon, janitorial businesses can quickly get affordable coverage and access a certificate of insurance online, helping you meet client and contract requirements faster.

Small business owners may need additional types of insurance to fully protect their businesses from risks and liabilities.

Some key janitorial services insurance policies to consider are:

• Professional liability insurance, also known as errors and omissions insurance (E&O), protects your janitorial service business from client lawsuits over errors, mistakes, or negligence they claim negatively impacted them.
• Cyber insurance helps small business owners recover financially from cyberattacks and data breaches. It's recommended for any business that stores personally identifiable customer data, such as credit card numbers and email addresses.
• Inland marine insurance, also referred to as tools and equipment coverage, safeguards your business property (such as cleaning supplies) while it's in transit or stored off-site.
• Commercial property insurance safeguards your building and its contents against financial losses from fires, storms, and burglaries. It's important to have commercial property coverage since homeowner's insurance provides little to no protection for business property.
• Business personal property (BPP) insurance covers your business personal property, which does not include buildings or offices. It protects your cleaning equipment while it's stored at a designated location, but you'll still need inland marine insurance for while it's in transit or at a jobsite.
• Lost key coverage helps pay for costs related to lost, stolen, or misplaced client keys, including lock replacement and rekeying expenses, which can be a common risk in janitorial work.
• Employment practices liability insurance (EPLI) is important if you hire employees, as it helps protect your business from claims related to wrongful termination, discrimination, harassment, or other employment-related issues.

You can add some of the above coverages, such as cyber insurance and BPP coverage, to your general liability policy as an endorsement.

While it might seem cost-effective to only carry cleaning liability insurance when you're actively working, in the long run, it could cost your business greatly. Maintaining continuous janitor insurance coverage can help protect your business from financially devastating lawsuits.