A janitorial business is a lucrative venture for a prospective business owner as it provides a much-needed service for businesses and homeowners. According to statistics business owners can earn between $30,000 and $70,000 each year depending on how many properties they clean each week. It could present a highly lucrative business venture for anyone, but like all businesses, the company will require insurance coverage. Reviewing the 5 types of insurance policies to consider if you’re running a janitorial business sheds new light on the best protection.
- Commercial Property Insurance
Commercial property insurance protects the building from which the owner operates the business. It is protected against specific perils that are known to occur in their geographical region such as floods or earthquakes. Fires, natural disasters, and criminal vandalism are also covered under the property insurance. The owner receives funds for repairs or to replace the property.
The value of the property is used to establish if the owner receives the true replacement value or the market value if the property is a total loss. The terms of the policy dictate this factor as well. Prospective entrepreneurs can review commercial property coverage for your janitorial business by contacting an insurance company right now for a free quote.
- Commercial Auto Insurance Coverage
Commercial auto insurance coverage is required for any vehicles used for a business. Typically, a janitorial business uses an SUV or a van to transport all their supplies and workers to each work site. Shelving may be installed in the vehicle to keep chemicals contained more effectively. Each new addition to the van might require more coverage for the vehicle itself. Comprehensive and collision policies are most effective in protecting the commercial vehicle and preventing financially losses.
Liability coverage for the commercial vehicle protects the business owner in the event that an auto accident happens. It will pay for medical costs for victims and cover the expense of auto repairs if the commercial driver was at fault. If the commercial driver is injured because of another party, the accountable driver must provide coverage for their injuries and any damage to the vehicle. The commercial auto policy will not cover any accidents that occur after business hours or if the driver is not completing business duties at the time of the accident.
Any commercial vehicles that are used for business and personal purposes must have a commercial auto insurance policy for business hours, and at least an auto liability policy to cover accidents during personal time. To protect the automobile fully, the business owner might consider getting comprehensive and collision along with their commercial auto policy. Discussing coverage levels with an insurer helps the business owner arrive at a decision about policies.
- General Liability Insurance
General liability insurance covers a plethora of risks that a janitorial service could face. First, if something comes up missing from one of the houses, the client might accuse the workers. If they file claim against the business, it could present a serious financial loss if the item was valued at a higher than average price. If the workers cause property damage, the homeowner could require the company to pay for the cost of the repairs. If a homeowner slips and falls because of any hazards left behind by the cleaning service, they could seek damages for their injuries and medical costs.
The owner must consider all possibilities when cleaning any residential or commercial property. With general liability coverage, the company is protected against losses that generate from a lawsuit. It pays funds to the plaintiff up to a specific amount. It is recommended that the business owner review their policies for limitations and calculate the potential losses they could face in the field.
- Worker’s Compensation Insurance
Worker’s compensation insurance is required for all businesses that hire more than one worker. The coverage protects the business against liabilities related to employee-related injuries. The policies provide coverage for medical expenses that occurred while in the workplace or performing job duties. It provides wage replacement for any workers who cannot return to work immediately. The replacement funds will not exceed 90% of the worker’s normal wages.
The employer must send the injured employee to the ER or a medical center for a complete assessment. A medical report must be sent by the doctor that treated the work to the insurance provider. The doctor must complete a drug and alcohol screening for all injured workers per the terms of the policy. Any worker who has alcohol or controlled substances in their system is disqualified for benefits. However, if the controlled substance was prescribed by a doctor, the employee must provide documentation for their prescription.
If the worker is denied benefits and was eligible, there is a possibility of a worker’s compensation lawsuit. The insurance policy offers some assistance for a settlement if the employee accepts it out of court. If not, the business will need to file a claim through their general liability coverage to protect them against the impact of personal injury damages ordered by the court.
- Janitorial Bonds for the Business
Janitorial bonds for the business cover one specific risk to the company. If any employee cleaning any of the properties steals, the policy pays the client the exact value of the item that is missing. Any janitorial or cleaning service that manages high caliber clients will need this policy. It doesn’t matter how well they screen their employees before they hire the workers.
There is always a possibility that someone will break the law. Purchasing the policy covers the company against these offenses and mitigates services risks to its reputation. With coverage, the business owner can settle this issue with the client privately and without ending up in the media.
A janitorial business gives the new owner a way to earn a living and give back to their communities. The service providers can build their business in record time and cultivate a large crew to clean more properties each day. Reviewing insurance for the business helps the budding owner protect their investment and workers more comprehensively.