Cleaning business insurance and bonding costs are dependent on several factors, such as the size of your business and its risks. Cost estimates are sourced from policies purchased by Insureon customers.
General liability insurance costs for cleaning businesses
Cleaning businesses pay a median premium of less than $45 per month, or $530 per year, for general liability insurance. This policy provides protection from customer injuries and property damage, along with advertising injuries.
Insureon’s licensed agents typically recommend a business owner’s policy 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 costs less than purchasing each policy separately.
Your level of risk affects general liability costs
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. High-risk businesses typically pay more for this policy.
Common general liability policy limits for cleaning businesses
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.
Your business type and size affect the cost of general liability
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.
Workers’ compensation insurance costs for cleaning businesses
To meet your state’s requirements and avoid penalties, cleaning businesses with employees typically must purchase workers’ compensation insurance. This policy helps cover medical bills and partial lost wages when an employee suffers a work-related injury or illness. With a median premium of less than $150 per month, or $1,785 per year for cleaning companies, policy cost is determined by your number of employees and occupational risk, among other factors.
Workers' comp costs depend on the number of employees
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 risk affect the cost, among other factors.
Commercial auto insurance costs for cleaning businesses
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 in an accident, along with vehicle damage caused by theft, weather, and vandalism.
Businesses with company-owned vehicles, such as septic tank trucks or carpet cleaning vans, must purchase commercial auto insurance. The cost will vary depending on the type and number of company vehicles, and your unique business risks.
Your vehicles and their use determine commercial auto costs
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 a vehicle's value and how often it is driven.
Which commercial auto insurance limits do cleaning companies choose?
Most cleaning businesses (56%) choose commercial auto policies with a $1 million generic limit.
Janitorial bond costs for cleaning businesses
With a median rate of about $8 per month, or $100 per year, a janitorial bond is an affordable way to gain client trust. The cost of a janitorial bond is determined by the services you offer, level of risk, and other factors.
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. This bond doesn’t cover damage to a client’s property.
How much do janitorial bonds cost for cleaning businesses?
Among cleaning service businesses that purchase janitorial bonds with Insureon, 78% pay between $100 and $150 per year. The cost of a bond primarily depends on its coverage limit.
Which janitorial bond limits do cleaning companies choose?
Most cleaning businesses (54%) choose janitorial bonds with a $10,000 limit. Another 20% choose bonds with a $1,000 limit.
Compare quotes from trusted carriers with Insureon
Insureon’s cleaning business insurance agents work with top-rated U.S. insurers to find affordable coverage that fits your business. Apply today to compare multiple quotes with one free online application. Work with an account manager specializing in the unique risks of house cleaners, janitors, and window cleaners.