Exterior Cleaning Insurance

Several factors affect insurance premiums for exterior cleaners during the underwriting process, such as:

• Type of services: The services you offer, such as roof cleaning, graffiti removal, or gutter installation, will affect how much you pay for business insurance.
• Business property and equipment: Expect to pay more for insurance if you own a large office, industrial soft wash systems, or expensive cleaning robots.
• Business size and revenue: Bigger businesses that earn more revenue are associated with increased liability claims and losses, which raises their insurance rates.
• Business location: Insurance costs can vary based on property values, litigation trends, crime rates, risk of severe weather, and the cost of doing business in your region.
• Coverage limits and deductibles: Higher policy limits cover more expensive claims at an increased cost, while choosing a higher deductible lowers your premium. Remember, your policy won't activate until the deductible is paid.
• Years of experience: An exterior cleaner who has a decade of experience can expect lower insurance premiums than a new, unproven cleaner.
• Claims history: Insurance companies will charge higher rates for cleaning companies that have previous insurance claims on their record.
• Number of employees: Each additional employee increases premiums because they each bring the risk of an injury or lawsuit.

Exterior cleaning businesses typically need insurance to operate legally and sign contracts, but the specifics depend on factors like your location and the services you provide.

Here are the insurance policies you may need to run your business:

• General liability insurance covers third-party bodily injuries and property damage, such as a client who trips over a ladder and suffers a concussion. You might need proof of insurance to rent a commercial space, sign a cleaning contract, or obtain a license. Property owners and others may ask to be included in your liability policy as an additional insured.
• Professional liability insurance, or E&O insurance, covers mistakes and oversights that lead to costly building repairs. Exterior cleaning companies often need E&O coverage to sign contracts with clients.
• Workers' compensation insurance is required in most states for businesses with employees, and occasionally for contractors who work alone. Workers' comp pays for medical treatment if you're injured on the job and provides disability benefits during recovery.
• Commercial auto insurance covers accidents involving business vehicles. Almost every state requires this coverage for vehicles owned by a business.

Every exterior cleaning company should carry commercial insurance, even when it's not required. Business insurance can pay for costly medical bills, property repairs, and legal fees—and being insured can help you win contracts and sign new clients, especially when you're first starting out.

State laws and local regulations often require exterior cleaners to have a license or permit. To obtain them, you may need to be bonded and insured.

Here are several examples of what you might need:

• Business license. To form a business, you may need to get a business license and register with your local government.
• Contractor's license. In California and some other regions, you need a contractor's license for water blasting or renovation work. You may need to be a certain age, have a specific amount of experience, pass an exam, pay a fee, and show proof of liability coverage or a bond.
• Wastewater permit. Depending on your location and the type of work you do, you may need a wastewater permit or discharge permit to comply with environmental regulations.

In addition, clients may choose to work only with licensed or bonded businesses in order to protect themselves against potential losses.

Yes, business insurance can help pay for repairs or legal defense costs if you damage a client's property. Here are the policies you might need:

• General liability insurance covers property damage caused by common accidents, such as a tool that falls from a roof and breaks a client's windshield.
• Professional liability insurance covers damage caused by professional negligence, such as excessive bleach that discolors a client's home.

General liability coverage typically includes products-completed operations coverage, which helps pay for legal expenses and damages if a cleaning product or completed project causes property damage or a bodily injury. For example, this coverage may help if window seals were loosened during a cleaning, causing a water leak that damaged the client's floor.

Exterior cleaning companies should carry both general liability and professional liability coverage, as they handle different situations. Keep in mind, your policies may exclude claims related to chemicals and pollutants, such as runoff that damages a client's landscaping. You can cover these types of claims with environmental insurance.

General liability also has a "your work" exclusion that denies coverage for damage to the surface you were hired to work on. For example, a contractor hired to clean a house's siding might accidentally damage both the siding and the gutters. General liability would cover the damage to the gutters, but not the damage to the siding since it was caused by the contractor's work on that surface.

For protection against expensive property claims, you can add commercial umbrella insurance to boost your policy limits. Exterior cleaners may buy an umbrella policy to meet a client's request for higher limits, or to protect against escalating legal costs and property repairs.

For a comprehensive risk management strategy, businesses that offer external cleaning should consider additional types of insurance, such as:

• Commercial property insurance covers costs if a fire, storm, or burst pipe damages or destroys your building or its contents. It also covers theft and vandalism.
• Business personal property (BPP) coverage insures movable assets, such as computers and cleaning equipment. If you don't have a building, you can add this coverage to your general liability insurance.
• Business interruption insurance, also called business income insurance, covers lost income and daily operating expenses if a covered property claim forces your business to temporarily close.
• Inland marine insurance, also called tools and equipment insurance, covers surface cleaners, ladders, sprayers, and other business property in transit, at jobsites, and stored off-site.
• Equipment breakdown insurance covers cleaning equipment that breaks down unexpectedly, such as a soft wash system that suffers a mechanical failure. You can often add this to your BOP or property policy.
• Product liability insurance, also called products-completed operations insurance, provides financial protection if a cleaning product causes an allergic reaction or other harm that leads to a lawsuit or damages. It's usually included in general liability insurance.
• Hired and non-owned auto (HNOA) insurance provides liability protection for vehicles that your business uses but does not own. That includes personal, leased, and rented vehicles.
• Janitorial bonds reimburse a client financially if an employee steals from them or commits fraud. You may need a bond to sign a commercial cleaning contract or get a permit in some regions.

Owners of exterior cleaning businesses can take steps to reduce their insurance premiums. Here are several ways to keep your costs low:

• Shop around. Insurance carriers often sell similar types of coverage at different rates. To find a good price, compare insurance rates from trusted carriers with Insureon's easy online application.
• Choose payments that work for you. You can choose to pay your premium once a month or once a year. Some insurers offer a discount when you pay the full annual premium, but business owners may find small monthly amounts easier. You can select a payment schedule that works best for your budget and cash flow.
• Work with an agent. Insureon's licensed agents can help you find coverage that fits your risks and your budget, without any add-ons you don't need. They can also navigate the insurance market to find cost-saving bundles and the best rates for your business.
• Keep continuous coverage. Stopping and starting coverage is a red flag for insurers, and may end up costing more in the long run.
• Customize your policies. Lower limits and higher deductibles can reduce your premium, but make sure you can easily afford the deductible, as it must be paid in full before you can collect on a claim.
• Manage your risks. Employee training, safety protocols, detailed contracts, clear communication, and other risk management strategies can help you avoid accidents, injuries, and lawsuits.