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Whether you are a single person registered as an LLC cleaning service or a small business with a team, the one thing you may want to know is that you will need several kinds of insurance. So much emphasis has been given to healthcare that many small business owners don’t fully understand that health coverage is really just the tip of the iceberg.
If you have failed to get the coverage you need, check for house cleaning insurance to get a quote for an affordable coverage because insurance is just something you cannot go without.
Why Your Cleaning Service Needs Insurance
Here it is wise to remember that coverage should never suffer because of cost. Instead of doing without, simply find a carrier that is affordable, and you will have the insurance you need to protect the cleaning business you’ve worked so hard to build. In fact, here are a few good reasons why you need insurance in the first place.
There Are Always Risks Involved
Before looking at the types of insurance coverages you can purchase, it helps to know that no matter what you do, there are always going to be risks involved.
For example, what would happen to your business if you are in the midst of dusting a shelf or bookcase and all of a sudden you inadvertently knock over a priceless Ming Dynasty vase? You probably don’t make enough in ten years to afford that type of collectible and so the right coverage will help you keep your job, while not giving a bad review that could quickly ruin a business.
Insurance can cover replacement costs up to the amount you have elected to buy, and this is why it is always suggested that you get the best coverage possible. If your indemnity only goes up to $50k to $110k, that wouldn’t even cover 1/10 the cost of that Ming artifact.
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Typical Insurance Coverages for Cleaning Services
General Liability is a standard policy. If you own property, you will want to carry property insurance as well as perhaps a Business Owner’s Policy, often referred to as BOP. If you rent, you may wish to carry a business rental insurance policy as well as something like equipment breakdown coverage.
What would happen if some of your expensive equipment broke down and you couldn’t cover replacement or repair costs? This type of coverage would kick in, usually minus the deductible you set when buying the policy.
Then there is Workers’ Compensation Insurance which you may be required to carry. You can check out the laws for New York State here, but know that every state has its own laws regarding Workers Comp.
What about Excess Liability, which could come in quite handy if your clients own priceless artifacts or the types of services you offer can be dangerous. Some cleaning services, for example, offer window cleaning as one of their services and sometimes those window cleaning certifications require workers to rappel from upper stories.
Adequate Coverage Can Literally Save Your Business
Now then, as mentioned or alluded to above, adequate coverage can literally save your business. Instead of being sued for losses, a claimant can file against your insurance company. There have been more businesses than you’d ever care to count which were saved from financial ruin simply because they had the foresight to carry excess liability.
A serious injury or a major catastrophic loss of their making could quickly amount to more than the cleaning service is worth as well. This would carry forward until the debt was paid and if there was no company left, how would the debt be settled? (Here is where you’d want to contact an attorney to see if a filing of LLC could protect your personal property and finances from legal business suits.)
Most Clients Will Only Hire Insured Cleaning Services
Finally, most clients will want to see your references. This will include the type of insurance you carry as well as any amounts and deductibles. They will want to see that you are duly licensed, of course, and that you have references they can check out and rely on, but insurance is going to be huge.
Most clients understand that businesses registered in their state are required to carry a bare minimum of certain types of coverage as discussed above and that it may be an uphill legal battle to sue for losses if the cleaning service is not insured.
So, there you have the basic types of coverage you should carry and why you need to carry the best coverage possible. You are in business, after all, and one major lawsuit could send you packing. Always know that as a legal business entity and as a cleaning service, you are going to be required by law to hold very specific coverage in your state. That is the main reason why you should have insurance for your cleaning service and one you can’t avoid without penalty.
