Janitorial Insurance & Bonding: Quotes & More

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Janitors and sanitation companies don’t always get the respect they deserve. They’re the cleaning business responsible for keeping our public spaces and businesses neat and beautiful. They often work long nights and early mornings. Few truly take the time to thank them for their efforts.

Similar to starting a laundromat business, one of the first steps in starting a janitorial business is purchasing business insurance. This will protect finances if something goes wrong, earn the trust of customers, and allow you to face liabilities with ease.

Below, we’ll answer some of the most commonly asked questions regarding janitorial insurance and bonding. Then, we’ll share our overview of some of the best and most popular insurance providers for janitorial and cleaning companies. Let’s take a look!

Do I Need Janitorial Insurance?

While most states don’t legally require cleaning companies to be insured, it’s always a smart idea. You never know what could go wrong while you’re working and cleaning. For instance, you could accidentally knock over an expensive vase, break a window, or cause a passerby to trip over your extension cord. All of these cases could result in you getting sued. That is unless you have liability insurance for janitorial services!

Insurance companies offer many types of liability insurance for janitors and other types of cleaning businesses such as window cleaners and gutter cleaners. However, the most useful ones are general liability and professional liability insurance. Let’s discuss these two in detail.

Janitor General Liability Insurance

Think about the consequences of these things happen while you’re providing janitorial services to a client:

• You mixed and used cleaning chemicals which in turn led to a chemical reaction that caused the client to be sick

• You were moving objects and dropped an item by accident

• The client came to check how you’re doing. The floor is wet. The client then slipped and fell

The above situations will deal personal injuries or property damage to the client. The client will surely file a claim to get compensation for suffering or reimbursement for losses.

Personal injury claims and property damage claims are never cheap. Paying will incur losses on your part. But this will never happen if you have general liability insurance.

The job of general liability insurance is to pay for personal injury claims and property damage claims on your behalf. Also, if things are taken to court, then general liability insurance will take care of your defense costs.

General liability insurance offers optional policies that protect you further from specific exposures. These optional policies are:

• Advertising injury coverage

• Products and completed operations coverage

Your client might file a personal injury claim or property damage claim after you’ve completed the janitorial service. Perhaps, something happened after you completed the project which injured the client or damaged property. The function of products and completed operations coverage is to cover defense costs if past clients sue you for personal injuries and property damage.

Other businesses might sue you for slander, libel, and copyright infringement. That’s why it’s smart you purchase advertising injury coverage. Advertising injury coverage covers defense costs and settlements if someone files slander claim, libel claim, or copyright infringement claim.

Does General Liability Insurance Cover a Commercial Space?

There’s another optional coverage in general liability insurance called rented premises liability coverage. Rented premises liability coverage covers a commercial space - but only those that you’re renting. This optional coverage in general liability insurance will reimburse the losses of the landlord.

Janitor Professional Liability Insurance

A client might accuse you of causing economic/financial loss by being negligent or committing workplace mistakes. Of course, you’ll have to pay a hefty price if this happens. To avoid incurring losses, consider getting professional liability insurance.

Professional liability insurance protects you against negligence claims, violation of good faith, misrepresentation, and acts considered as errors and omissions. In practice, professional liability insurance will pay for attorney fees and other legal costs. In case you lose the legal battle, professional liability insurance will compensate the aggrieved party on your behalf.

What are the Two Types of Professional Liability Insurance?

There are two types of professional liability insurance occurrence and claims-made.

Claims-made professional liability insurance only provides coverage to claims made at the time a covered peril happened. On the other hand, an occurrence professional liability insurance covers claims regardless if the covered peril happened while the policy is active or has expired.

Between the two, it’s best to get professional liability insurance. It’s not really comprehensive. However, the protection it provides lasts for a long.

Will Liability Insurance Be Affordable?

Janitorial liability insurance is relatively affordable. The small monthly fee you pay to insure your cleaning business is well worth the tens of thousands of dollars - or even more - that your policy could potentially save you later down the road!

Do You Need Other Insurance?

If you’re someone who's running a growing janitorial service business, think about getting more protection aside from general liability and professional liability. Exposures become more prevalent as a business grows. And purchasing many insurance policies will ensure that you have adequate protection. That being said, your investment in premiums will be worth it.

So what other insurance policies do you need? Additional insurance products you should invest in are:

• Workers compensation insurance

• Commercial property insurance

Janitor Workers Compensation Insurance

Accidents are common in janitorial businesses. As a result, your employees might suffer from fatal injuries and will need treatment as well as lost income compensation. Before we discuss how workers' compensation insurance can help, take a look at these reports from OSHA that shows how devastating workplace accidents can be to janitorial business employees:

• At 10: 45 a.m. on July 10, 2020, an employee was providing a cleaning service to a client. He mixedPure Bright Germicidal Ultra Bleach, NCL TP #15 Organic Acid HD Restroom Cleaner, NCL TP#17 HD Detergent/Disinfectant, and NCL EarthSense TP#16 pH Neutral All-Purpose Cleaner. The combination of these cleaning agents caused a chemical reaction that inflicted the employee in question with respiratory distress. Luckily, the employee was treated without needing professional medical care

• At 6: 30 a.m. on July 23, 2021, an employee was cleaning material off a roof. Due to some unknown causes, the employee fell through a skylight. He was killed upon reaching the ground
  

You have to pay for treatment, rehabilitation, and lost income compensation if an employee of your janitorial business suffers from a work-related injury or sickness. And the job of workers compensation insurance is to pay for everything on your behalf. To be clear, workers compensation insurance will provide money you can use to pay for the employee’s hospitalization and treatment. Also, this policy will provide an allowance equal to two-thirds of the average weekly wage if the employee needs to take a break.

Can You Choose Not to Get Workers Compensation Insurance?

Getting workers compensation is required by law the moment your janitorial business has one or more employees. However, you don’t need to get this policy if you're operating in Texas.

The penalty for not getting workers comp varies and depends on which state your janitorial business is registered. Here are some examples of workers comp penalties:

• Oklahoma -Failure to get workers' compensation insurance is subject to a penalty of up to one thousand dollars per day starting from the time coverage isn't purchased. Furthermore, this might be considered an offense disputable in a district court

• Minnesota - The amount of penalty is calculated depending on how many instances a janitorial business didn’t provide workers comp coverage to an injured or sick employee :

• First violation - warning

• Second violation - $125

• Third violation - $250

• Fourth violation - $375

• Fifth violation going onwards - $500

• Kansas - A janitorial business that fails to get workers comp will pay $25,000 or twice the amount for premiums, whichever is greater

• New Jersey - Failure to purchase adequate workers' comp insurance for your janitorial business is subject to administrative fines or criminal charges as severe as fourth-degree felonies. The financial penalties are up to $5,000 for the first 20 days of noncompliance and up to $5,000 for each 10-day period thereafter

Commercial Property Insurance

Commercial property insurance covers the commercial space your janitorial business owns. This coverage will pay for reconstruction costs if the building is damaged by fire or extreme weather. Commercial property insurance will shoulder expenses if your business’s commercial space is damaged by theft, vandalism, riot, extreme weather, and other covered perils.

Of course, you have janitorial tools and equipment that needs to be insured too. That’s why you should add business equipment and tools coverage to commercial property insurance. This optional coverage will reimburse your losses if tools and equipment get lost or damaged by fire, extreme weather, vandalism, theft, and other covered perils. If covered tools and equipment are less than three years old, then business equipment and tools coverage will provide immediate replacements.

How about the cleaning agents and other substances you’re using to provide janitorial services? Business stocks and contents cover these things. Through this optional policy, the insurance company will provide money equal to the value of cleaning agents and other substances that were damaged or lost because of fire, theft, vandalism, and other covered perils.

Bonding and Insurance for a Cleaning Company

One of the lesser-known aspects of insurance is the concept of bonding. There are different types of bonds, but the most common type of janitorial bond is a contract bond. These are typically issued by banks or insurance companies.

Basically, they’re a type of contract designed to protect both parties. One part of the bond protects the customer and ensures that the janitorial service takes care of everything that they say they’re going to do. The other part of the bond protects the janitorial service and ensures that they get the money that’s owed to them (providing they fulfill their end of the contract).

Bonding insurance for a cleaning business like janitorial/commercial cleaning is relatively easy and low-cost to sign up for. The main benefit of janitorial bond insurance is that you’ll be able to get jobs faster and easier. It will make you appear more trustworthy and will help you to get higher-paying jobs where a higher degree of trust is necessary for both parties.

Janitorial Insurance Cost

On average, janitorial businesses pay $35 a month or $420 a year for a $1 million general liability coverage. Factors that affect pricing are:

• Policy limits - Having a higher limit means that your insurance premiums will be more costly as protection is more comprehensive

• Deductibles - Deciding to have a $1,000 deductible means that your insurance premiums will be cheaper as compared to a $500 deductible or no deductible at all

• Business history - Janitorial businesses operating for more than three years enjoy cheaper premiums than startups

• Claims history - A janitorial business that has filed 4 or 3 claims will pay more for premiums than a janitorial business that hasn’t made a claim ever since

• Location - Pricing also depends on which state your janitorial business is registered

For a more idea about the cost, here’s a table showing the pricing of the best janitorial business insurance companies:

Best Janitorial Insurance Companies

Now that you know a little bit more about how janitorial business insurance works, you’re probably wondering who some of the best janitor insurance providers are. If so, we’ve got you covered! Most insurance companies are capable of providing general liability insurance for small businesses. However, based on our research, we’ve found that the following insurers tend to be the most popular among cleaning and janitorial businesses. Read the reviews below to know their pros, cons, and cost for a $1 million general liability coverage. 

CoverWallet Janitorial Insurance

Pros

• Compare quotes and see the offers of different insurance companies

• Stable rates

• Cancel a policy anytime and anywhere

• No need to call an agent to file a claim

Cons

• Doesn’t underwrite its own janitorial insurance

Coverwallet is an insurance broker that offers liability insurance for businesses offering janitorial services.  Use this company’s online quotes comparison platform to know the pricing and features of tailored janitorial liability insurance plans from different carriers. If you don’t want to do the legwork yourself, then CoverWallet’s customer service is ready to make everything straightforward, and they’ll choose the policies and amount of coverage you need.

CoverWallet customizes the quotes of its partners to give you these four insurance options-general liability only, general liability with commercial property, business owner’s policy with workers compensation, and a custom plan. 

Decide to work with CoverWallet if you’re looking for a company that streamlines the whole insurance process for customers. CoverWallet allows you to get insured, pay premiums, and furnish a copy of proof of insurance online. 

Best for: Janitorial insurance quotes comparison online

Average cost: $29  per month

Our rating: 10/10

Thimble Janitor Insurance

Pros

• Has a business insurance calculator for you to estimate rates

• Decide to get covered for only hours, days, weeks, or months

• No deductibles

Cons

• You can only file a claim via the Thimble app

Small-time janitors will like Thimble. This insurance company offers janitorial service general liability insurance with optional equipment and tools coverage. The amount of insurance money you’ll get from Thimble’s general liability insurance is $1 million to $2 million. And since it’s available as short-term insurance, you can decide to get covered for only hours, days, weeks, or months. 

There are many perks to working with Thimble. First, you can get insured online. The second is that you can choose not to have any deductible (though this will make premiums a bit pricey). Third, Thimble gives instant proof of insurance as soon as you finalize the purchase. 

Best for: Short-term general liability insurance for janitors

Average cost: $38  per month

Our rating: 9/10

Progressive Janitorial Insurance

Pros

• A long history of insuring businesses

• Fair premiums and pricing

• Friendly agents make handling claims a breeze

Cons

• They’re not the cheapest insurance company

Progressive has been providing high-quality insurance to policyholders since 1937 and it has no plans of stopping. Although most know Progressive for the interesting tv commercials, Progressive also has a strong reputation in the business insurance sector. The company has garnered tons of positive reviews in terms of customer satisfaction and the overall friendliness of the agents. 

Whether you just need a simple janitorial insurance program for your self-employed business or you own a larger cleaning company with multiple employees, Progressive allows you to build your own policy so that you don’t have to worry about paying for extra coverage that you don’t need. 

Best for: Janitorial company’s commercial auto insurance

Average Cost: $45  per month

Our rating: 8/10

The Hartford Janitorial Insurance

Pros

• Tailor-made insurance policies for each business

• Low-cost premiums

• Honest, reliable insurer

Cons

• Claims may take a bit longer to process

Although The Hartford doesn’t spend as much on TV advertising as its larger competitors, it has grown a strong following among business owners who are looking for a low-cost, honest insurance provider without the headaches and constant back-and-forth communication. 

Like Progressive, The Hartford allows policyholders to build their own policies from the ground-up. This ensures that your janitor insurance policy is exactly what you need- nothing more, nothing less. Another key advantage of going with The Hartford is that monthly premium costs are a bit lower since you might qualify for numerous discounts. 

The one drawback to The Hartford is that they can sometimes be slow when it comes to processing claims. Since they’re a smaller company, they often don’t have as many agents on-hand as larger insurers. Unless you foresee yourself using your insurance a lot, though, The Hartford should be just fine for most small janitorial businesses. 

Best for: Small janitorial businesses with less than 10 employees

Average cost: $60  per month  

Our rating: 7/10

Geico Janitorial Insurance

Pros

• Fair pricing for janitorial liability insurance

• Fast, easy app makes billing and handling claims easy

Cons

• Your business insurance isn’t quite as personal

Geico is one of the largest insurance companies in the nation and they provide everything from residential car and home insurance to liability business insurance for small cleaning businesses. Since they’re one of the larger insurance companies and have tons of policyholders, their pricing is quite fair. One of the top reasons why so many people use Geico is the company’s ease of use. They have a fast, up-to-date smartphone app where claims can be easily tracked and handled, and it’s never hard to speak with an in-person representative. 

Best for: Mid to large-sized janitorial and cleaning companies

Average cost: $75  per month

Our rating: 6/10