How Much Does It Cost to Get Insurance for a Cleaning Business?


If you’re thinking of starting a cleaning business, there are several costs you should factor in, and insurance is no exception. Cleaning services can be high risk, not only for the simple fact that clients are allowing 24-hour access to their entire business.

There are also safety issues with wet floors and on-the-job injuries. Even if you’re as careful as possible, there’s still the potential for unintentional damage or loss and your company will be held liable.  

Commercial business insurance is something that you should look into and include in your business plan and financing at the outset. But how much should you budget for? Read on for more information.  


Cost of Cleaning Business Insurance

Just like any other insurance policy, the cost of your small business insurance will vary depending on a provider’s evaluation of how much of a risk your business poses.


General liability insurance is for basic injuries and damages, such as someone slipping on a wet floor if someone neglected to put up the appropriate signage. This action could result in a lawsuit. Annual premiums can be up to $300 or more, so it’s best to budget that amount at the outset. This fee can vary, but most customers pay under $1000 per year. Keep in mind that most companies are looking for liability coverage of 5 million dollars.

Commercial property insurance is another type of insurance that covers repair costs. It might be used in the event of fire or theft, for instance. It’s a good idea for cleaning companies to include this in their policy and again this could be around $300.

Business owners’ policies are another type of cleaning company insurance that you may have the option of attaining. This coverage is something that should also cost you less than $1000 per year.

Also, don’t forget to factor in the cost of auto insurance for your potential business vehicles.


Other Liability Costs

Your business liability insurance cost and related fees will vary based on the type and extent of your business. Workers’ Compensation is your obligation as an employer, and you must register for and pay it accordingly. In Canada, this is a provincial rather than federal program, so be sure to get familiar with the Workers’ Compensation policy in your area.


Becoming bonded is also in your best interest since your clients will likely view you as a risk because you have access to their private business space and equipment. Like Workers’ Compensation, bonds are typically managed on a provincial basis.


Commercial business insurance for cleaning companies is a must in Canada, and you’ll need to develop a concrete business plan before you know precisely what your premiums will cost. JAN-PRO can help answer your questions about cleaning franchises in Canada – give us a shout for more information or if you to Become a Franchisee Today!

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