Do I Need Insurance for My Housekeeping Business?
House Cleaning Business

Do I Need Insurance for My Housekeeping Business?

by Martha Scully

Cleaning businesses are a popular venture today. There is no shortage of home and business owners that require the services of a cleaning company.

If you want to be successful in the housekeeping business, you need to do things the right way. You need to think about it in terms of being a housekeeper and as a business professional. This means setting up your business the right way, offering great service, and protecting your investment in your profession with proper business insurance.

Whether you are a sole proprietor and have a one-person operation, have a small cleaning company with a few employees or run a franchise, having proper insurance for your housekeeping business will provide you with the coverage and protection you need if an issue arises during a cleaning job.

Housekeeping Business Risk

While having a general business insurance plan is a great start, because of the unique nature of housekeeping and cleaning services – working in homes and business – you are exposed to more risk than a typical business that operates out of one location.

What are some of the risks your business is exposed to?

  • Damage to a client’s property
  • Employee theft from a residence or business
  • Car accidents while in transit to a client’s location

As a professional housekeeper or cleaning business owner, you never know what could happen. Lawsuits against cleaning companies and housekeepers do happen, and you need to take the necessary steps to ensure you are ready to handle any situation that may arise.

You Have Insurance Options

As a cleaning business, a wide range of business operations should be covered by insurance.

  • You will need commercial property insurance if you have an office or storefront
  • You will need home-based business insurance if you run your housekeeping business out of your home
  • You will need commercial auto insurance to cover the vehicle you use to get to your clients’ homes and businesses
  • You will need general liability coverage to cover injury or damage to other people and property
  • If you have employees, you will need workers compensation and fidelity coverage

Which Main Type of Insurance Do I Need?

While a general business insurance policy will coverage most of your insurance needs, there are three main types of business insurance that you need specifically for your cleaning company:

1. General liability insurance

This provides you with protection in the event that your business causes property damage or an accidental injury occurs in a client’s house. For example, you accidentally spill a cleaning solvent on a client’s sofa and stain it, or your client slips and falls on a wet floor you are cleaning. You may also want to take things one step further and add professional liability insurance – which provides coverage if you are sued by a client for errors or negligence when providing cleaning services.

Questions to consider:

  • How much liability coverage do I need?
  • Will the minimum amount of liability cover me? Do I need additional liability coverage?

2. Commercial auto insurance

If you or your employees drive your vehicle or a company vehicle to serve your customers, then you will need a commercial auto insurance policy. Commercial auto policies provide more coverage than personal auto insurance coverage.

Questions to consider:

  • Do you use your personal vehicle for business?
  • Do your employees drive their own vehicle or a company car?

3. Bonding insurance

[Bonding insurance]( also referred to as bonds, is a form of insurance that protects you against losses as a result of incompetence, fraud or theft. For example, if you or an employee make a mistake that results in damage or loss to a client’s property, you would be covered. It also provides protection if you are sued as a result of failure to perform cleaning work to a certain standard.

A specific type of coverage you should consider is fidelity bonds. This is particularly important if you have employees as it provides you coverage for employee dishonesty and theft.

Question to consider:

  • Do you need a bond? If so, which coverage makes the most sense?

For more information on bonding insurance for a house cleaning business read: Do House Cleaning Businesses Need to be Bonded?

Conclusion

Talk With Your Insurance Professional

The level of insurance you need and the amount of coverage required will depend on the nature of your business. A one-person operation probably doesn’t require fidelity insurance coverage, and you may be able to get adequate car insurance coverage through your personal auto insurance policy.

If you are not sure or have questions about your insurance needs for your housekeeping business, talk with your insurance professional. They are your best source of advice and can help ensure your business has the level of insurance you need to be fully covered.

Is your housekeeping business covered from risk, loss, and unforeseen circumstances? A lack of proper business insurance can turn an unfortunate situation into disaster for you and your company. Don’t take the risk. Invest in business insurance for your cleaning business and take the peace of mind in knowing you are covered.

Are you looking to clean up? Want to get access to more high-quality housekeeping positions in your area?

Try Housekeeper.com. Get started by posting a free profile and browsing the open housekeeping positions in your area.



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About the Author
Martha Scully
Martha is the founder of CanadianNanny.ca. Martha has been featured as a Child Care Expert in hundreds of publications across Canada including The Globe and Mail, CBC, Today's Parent and The National Post, She lives in British Columbia with her husband and two daughters.