What Insurance Do You Need for a Cleaning Business?

General liability insurance covers third-party claims for bodily injury and property damage, protecting cleaning businesses from common risks like client slip-and-falls and damage to customers' belongings. Most cleaners need $1 million to $2 million per occurrence or $2 million to $3 million aggregate coverage.

Real-life coverage scenario: While cleaning a luxury condo, an employee broke a $3,500 antique vase and damaged $8,000 of hardwood floors. Without coverage, Maria would've paid $11,500 plus legal fees. General liability insurance covered everything.

Workers' compensation insurance is required by law if your cleaning business has employees. It pays medical costs and lost wages for work-related injuries, such as chemical burns, slip-and-fall accidents or back injuries from lifting equipment.

Real-life coverage scenario: An employee severely injured his back moving a 50-pound floor buffer down stairs. Emergency surgery, therapy and three months off work totaled $47,000 in medical bills and $15,000 in lost wages. Workers' compensation insurance covered all $62,000, protecting the employee and business.

Professional liability insurance protects cleaning businesses from costs when clients claim inadequate cleaning or negligence causes damage. Most cleaning companies need at least $1 million per claim or $1 million aggregate, which satisfies most client contract requirements.

Real-life coverage scenario: A cleaning crew failed to sanitize a medical office properly. Three patients contracted infections, and the practice sued for $250,000. Professional liability insurance handled legal defense and settlement, saving the business from bankruptcy.

Tools and equipment insurance (or inland marine insurance) covers equipment or supplies your cleaners use that break down or are damaged on the job or in transit, like vacuums or cleaning formula. Commercial property insurance covers stationary property at your headquarters. Most cleaning businesses need $10,000 to $15,000 in coverage.

Real-life coverage scenario: Thieves broke into a work van and stole $3,850 in equipment (vacuums, steam cleaner and pressure washer). The crew couldn't work, losing $2,400 in revenue. Tools and equipment insurance reimbursed them within days, preventing business disruption.

Most cleaning businesses need $1 million combined single limit (CSL) for liability with comprehensive and collision coverage, which satisfies state requirements for commercial vehicles. Commercial auto insurance covers damage to your vehicles and damage you cause to others, protecting you from paying legal, medical or vehicle replacement costs after accidents.

Real-life coverage scenario: A company van ran a red light, causing a collision that cost $35,000 in medical bills, $18,000 in vehicle damage, $32,000 for a totaled van, $5,000 in equipment destroyed and $8,000 in traffic pole damage, for a total of $98,000. Commercial auto insurance covered everything with just a $1,000 deductible.