Business Insurance Requirements for Cleaning Businesses in Michigan

We live in a fast-paced world, and these days more and more people are investing in cleaning services to save precious time. Whether you run a janitorial company in Detroit or provide house cleaning services for lakefront vacation rentals in the Upper Peninsula, it’s important to be as meticulous when shopping for insurance as you are with keeping things tidy.

While you may be familiar with general liability insurance and workers’ compensation, you may not know about products like SPICE (Specialty Property Insurance Coverage Endorsement), which addresses the unique risks faced by cleaning businesses. It extends coverage to property in transit and at client locations. It also adds $25,000 of basic business interruption insurance at select client locations and can cover employee theft, forgery and alterations, and money and securities.

Insureon makes shopping for insurance easy with industry-leading technology that gathers quotes from top U.S. carriers that fit your needs. Read more to find out which policies are most common for cleaning businesses in Michigan, or fill out an application to get your free quotes today.

Find the right insurance policy for your cleaning business

The most common policies for cleaning businesses in Michigan vary depending on factors including revenue, client contracts, and partnerships. The table below illustrates which policies might work best for your business.

 

Business type General liability BOP / property Bond Workers' comp
Sole proprietor X X X  
Partner X X X  
Contractor / freelancer X X X  
Employer X X X X

 

Here are some details on how these types of cleaning business policies can benefit you:

General liability insurance: General liability insurance is the foundation of a cleaning business’s protection. Coverage extends to bodily injury, client property damage, advertising injury, and the cost of legal defense. Most commercial leases require you to have this coverage.

Professional liability insurance: Many clients require proof of professional liability insurance before entering contracts for professional services. This policy, also called errors and omissions insurance, or cleaning business liability insurance, can help cover legal expenses if you’re sued for unsatisfactory work or a business discrepancy.

Surety bond: A surety bond assures your clients that the insurance company will reimburse their losses if you can't deliver contracted services. Unlike a typical insurance policy, you must repay the amount your insurer pays on a claim. Cleaning businesses often need this bond before they enter long-term service contracts.

Michigan workers' compensation: Michigan state law requires small businesses with three or more employees at any one time to provide workers' compensation coverage. Businesses must also provide coverage if they have one or more employees for 35 hours or more per week for 13 weeks or more.

Even if you’re a sole proprietor, workers’ comp is a smart choice. The physical nature of the work means that accidents occur at a relatively high rate in the cleaning industry. If you or one of your employees is injured on the job, workers’ comp can help pay for medical fees and lost wages. The following chart illustrates some of the most common injuries experienced by cleaners and janitors in the United States, according to data from the Bureau of Labor Statistics.

Most Common Workplace Injuries: Cleaners in the U.S.

Business insurance costs for cleaning businesses in Michigan

While commercial auto insurance is the most expensive coverage commonly purchased by cleaning business professionals (costing a median of $2,488), general liability, surety bond, and workers’ compensation policies fall at or below the national median cost. Find details of how Michigan's costs for cleaning professionals vary from national rates in the chart below.

Median Insurance Costs for Michigan Janitors & Maids

Save time and money with Insureon

Insureon’s industry-leading technology helps cleaning businesses in Michigan save time and money shopping for insurance by comparing policies from dozens of top U.S. carriers. Simply apply online and review quotes for the policies that best fit your business needs. Our insurance specialists are licensed in Michigan and can answer your questions as you consider coverage.

To make the application go even quicker, have this information ready:

  • Workforce details, such as the number and types of employees.
  • Current and projected revenue.
  • Business partnerships.
  • Insurance history and prior claims.
  • Commercial lease insurance requirements.

Apply for free cleaning business insurance quotes today.