How much does carpet cleaning insurance cost?

Carpet cleaning companies pay an average of $53 per month, or $630 per year, for general liability insurance.

This policy protects carpet and upholstery cleaners against legal fees from customer property damage and injuries. For example, a customer could slip on a wet floor, or an employee could run a carpet cleaner into a fragile antique.

It also covers advertising injuries, such as a competitor suing your company for saying something negative about them on social media.

This is the average general liability insurance policy for carpet cleaning businesses that buy from Insureon:

Premium: $53 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

For small cleaning businesses that have a physical location, our insurance agents recommend a business owner's policy, which bundles general liability insurance with commercial property insurance at a discount to protect your building and its contents.

The cost of a general liability policy depends on factors such as the coverage limits you choose, the size of your business, the amount of foot traffic, and any subcontractors or additional insured endorsements. Learn more about how your premium is calculated.

On average, cleaning businesses pay $136 per month, or $1,627 annually, for workers' compensation insurance.

Workers' comp insurance covers medical expenses and disability benefits when you or an employee suffers a work-related bodily injury or illness. For example, an employee could trip over a rug cleaner and get a serious concussion.

Typically, state laws require carpet cleaning businesses that have employees to carry this coverage. It's also recommended for sole proprietors, as health insurance plans can deny claims when an injury or illness is related to your job.

Most workers' compensation policies include employer's liability insurance, which provides protection in case a carpet cleaner sues over a work injury.

The cost of workers' comp depends on your business's location and the number of employees, among other factors.

The average cost of a janitorial bond is $11 per month, or $126 annually, for cleaning companies. Carpet and upholstery cleaners might need this bond in order to sign a contract with a client.

Janitorial bonds are a type of surety bond, also called employee dishonesty coverage or a fidelity bond. If an employee at your cleaning company steals from a client's home, the insurance company will reimburse the client for their financial loss. Unlike a typical insurance policy, you must pay this amount back to the insurer.

When you carry a bond, customers know they can trust your company to protect them. In fact, some customers may choose only to hire bonded and insured carpet cleaning companies.

The cost of a surety bond depends on how much coverage you buy, as it's a percentage of the total bond amount.

Cleaning businesses pay an average premium of $173 per month or $2,075 per year for commercial auto insurance. This policy covers property damage and medical bills resulting from an accident involving your company vehicle. It can also cover vehicle theft, vandalism, and weather damage.

Most states require this type of insurance for vehicles owned by a business, such as a van used to transport carpet cleaners and shampooers. For personal, rented, and leased vehicles used for work purposes, look to hired and non-owned auto insurance (HNOA) instead.

The cost of commercial auto insurance depends on several factors, including the policy limits you choose, claims history, the value of your business vehicle(s), and the driving records of anyone permitted to drive.

Carpet cleaning companies that are small and low risk are often eligible for a business owner's policy. For cleaning businesses that qualify, the average premium for a BOP is $76 per month, or $907 per year. 

A business owner's policy is the best way for carpet cleaning businesses that have a building or office to protect themselves against common third-party lawsuits and damage to their building or its contents. It bundles both general liability coverage and commercial property insurance together at a lower cost than buying these policies separately.

If your business doesn't have a physical location, you can instead add business personal property (BPP) coverage to your general liability policy, or contractor's tools and equipment insurance to cover carpet shampooers and other items that travel to jobsites.

This is the average BOP for cleaning businesses that buy from Insureon:

Premium: $76 per month
Policy limits: $1 million per occurrence; $2 million aggregate

You can often add business interruption insurance to a BOP for more complete coverage. Business interruption insurance covers day-to-day operating expenses and other costs if your carpet cleaning business is forced to close temporarily due to a fire or other covered property claim.

The cost of a business owner's policy depends on the value of your carpet cleaning equipment and other property, along with the same factors that affect your general liability premium, such as your type of business and its size.

Cleaning contractors and businesses pay an average premium of $67 per month, or $801 per year, for commercial umbrella insurance. This policy can offer the extra coverage you need to satisfy a client's requirements for higher limits on another underlying policy.

Umbrella insurance boosts the protection of your general liability insurance, commercial auto insurance, and employer's liability insurance in $1 million increments. When a claim exceeds the limits of the underlying policy, umbrella insurance kicks in to provide coverage.

The cost of umbrella insurance depends on your risks and on how much coverage you buy. You need to buy a certain amount of underlying coverage before you can buy umbrella insurance.