How much does cleaning service business insurance and bonding cost?

Cleaning and janitorial businesses pay a median premium of less than $45 per month, or $530 per year, for general liability insurance. This policy provides financial protection from customer injuries and property damage, along with advertising injuries.

Insureon’s licensed agents typically recommend a business owner’s policy (BOP) over a standalone general liability policy. A BOP combines general liability insurance with commercial property insurance to protect your specialized cleaning equipment and other property, and typically costs less than purchasing each policy separately.

For cleaning businesses, the median premium for a BOP is only $43 per month, or $520 annually. The cost is low because only small, low-risk cleaning businesses are eligible.

Among cleaning businesses that purchase general liability insurance with Insureon, 16% pay less than $500 per year and 69% pay between $500 and $1,000 per year. Larger businesses with more clients typically pay more for this coverage.

Policy limits determine how much your insurer will pay on covered claims. A per-occurrence limit is the maximum your insurer will pay for a single incident, while an aggregate limit is the maximum your insurer will pay on any claims during your policy period, typically one year. Higher limits cost more – and provide better coverage.

Most cleaning professionals (90%) choose general liability policies with a $1 million per-occurrence limit and a $2 million aggregate limit. As your small business grows, you may need to expand your policy limits.

Businesses with large premises, such as a pool cleaning company with a two-story office, typically pay more for general liability insurance than smaller businesses, such as a house cleaning business with a few employees. Your industry risk, building maintenance, years in operation, and your location will also affect your premium.

The annual median cost for a pool cleaning business is $693, while the median for a house cleaning company is $504 – or less than $45 a month. As you can see, the cost can vary significantly across professions.

Learn how to save money on your policy, which coverage limits to choose, and more on Insureon's general liability insurance cost analysis page.

To meet your state’s requirements and avoid penalties, cleaning and janitorial businesses with employees typically must purchase workers’ compensation insurance. The median premium is less than $150 per month or $1,785 per year for cleaning companies.

This policy covers the cost of medical treatment when an employee suffers a work-related injury or illness. It also provides part of the wages lost while the employee is recovering and unable to work.

Sole proprietors and independent contractors aren't required to carry workers' comp, but they can opt to buy it. Even when it's not required, it's a good idea to carry this coverage. It protects against work injury costs that health insurance might deny.

Among cleaning businesses that purchase workers’ compensation insurance with Insureon, 18% pay less than $1,000 per year and 38% pay between $1,000 and $2,000 per year. The number of employees and their level of occupational risk affect the cost, among other factors.

Learn how workers' comp premiums are calculated and more on Insureon's workers' compensation insurance cost analysis page.

Cleaning businesses pay a median premium of approximately $130 per month, or $1,555 per year, for commercial auto insurance.

This policy can pay for third-party property damage and medical bills related to accidents involving a business vehicle. It can also cover vehicle theft, vandalism, and weather damage.

Businesses with company-owned vehicles, such as septic tank trucks or carpet cleaning vans, must purchase commercial auto insurance to comply with state laws.

Among cleaning businesses that purchase commercial auto insurance with Insureon, 26% pay less than $1,000 per year and 41% pay between $1,000 and $2,000 per year. The cost primarily depends on the vehicle's value and how often it is driven.

Most cleaning businesses (56%) choose commercial auto policies with a $1 million policy limit.

Learn how coverage limits and other factors affect the cost of this policy on Insureon's commercial auto insurance cost analysis page.

Commercial umbrella insurance boosts the protection of your general liability insurance, commercial auto insurance, and employer's liability insurance (usually included in workers' compensation insurance). Cleaning and janitorial businesses pay a median of $63 per month, or $758 annually, for this policy.

Cleaning businesses may need this policy if a client requires liability coverage in excess of $2 million. For example, a client might require you to carry $3 million in general liability coverage before they'll allow your staff onto their property.

To meet this requirement, you might first buy a general liability policy with a $2 million per-occurrence limit and a $2 million aggregate limit, and then add a $1 million umbrella policy.

The cost of umbrella insurance depends on how much coverage you buy. It's available in $1 million increments. You need to buy a certain amount of underlying coverage before you can buy umbrella insurance.

Learn how to save money on your policy, which coverage limits to choose, and more on Insureon's umbrella insurance cost analysis page.

A janitorial service bond is a type of surety bond that protects against losses caused by an employee’s dishonesty. That means if one of your employees steals from a client, the client will be compensated. Unlike typical insurance policies, this amount must be paid back to your insurer.

With a median cost of only $8 per month, a janitorial bond is an affordable way to gain client trust. Among cleaning businesses that purchase janitorial bonds with Insureon, 78% pay between $100 and $150 per year for this protection.

The cost depends on how much coverage you buy. Additionally, high-risk businesses may have to pay a higher percentage of the bond amount as a premium.

Most cleaning businesses (54%) choose $10,000 janitorial bonds. Another 20% choose $1,000 bonds.

To learn more about the cost of janitorial bonds and how much coverage to buy, visit Insureon's surety bonds cost analysis page.