The cost of insurance for a commercial cleaning business can vary depending on several factors, including the size of your business, the type of services you offer, your location, and the level of coverage you need.
Here’s a general breakdown of the costs…
Types of Insurance for Commercial Cleaning Businesses
- General Liability Insurance
- Purpose – Covers third-party bodily injury, property damage, and legal fees if someone is injured or if there is damage to client property during cleaning.
- Cost – Typically, general liability insurance costs $400 to $1,000 per year for a small cleaning business. Larger businesses with more employees or a higher risk of claims might pay more.
- Workers’ Compensation Insurance
- Purpose – Provides coverage for employees who are injured on the job. This is required in most states if you have employees.
- Cost – Workers’ compensation rates vary by state and the type of work employees do. For a cleaning business, it can cost $500 to $2,000 per year, depending on your payroll and employee classification.
- Bonding Insurance (Surety Bonds)
- Purpose – Protects your clients in case of theft or damage by an employee while working at their property. It’s often required for cleaning contracts, especially with large or commercial clients.
- Cost – Bonding insurance costs typically range from $100 to $500 per year, depending on the bond amount (usually $10,000 to $50,000).
- Commercial Auto Insurance
- Purpose – Covers company-owned vehicles or vehicles used for business purposes (e.g., transporting cleaning equipment).
- Cost – Commercial auto insurance costs depend on your vehicle type, usage, and location, but it usually ranges from $1,000 to $3,000 per year per vehicle.
- Property Insurance
- Purpose – Covers damage to your business property, such as office equipment, cleaning supplies, or storage spaces.
- Cost – For small operations, property insurance typically costs $500 to $1,500 per year.
Total Cost Estimates
For a small commercial cleaning business with basic insurance needs (general liability, workers’ comp, bonding), you can expect to pay anywhere between $1,000 to $4,000 per year for coverage.
If your business is larger, has more employees, or offers specialized services (e.g., heavy-duty cleaning or hazardous material handling), your premiums may be on the higher end of the spectrum.
How to Lower Insurance Costs
- Bundle Policies – Many insurers offer discounts if you bundle multiple types of insurance (e.g., general liability and workers’ comp).
- Increase Deductibles – Higher deductibles can lower your monthly premium, but it means you’ll pay more out-of-pocket if a claim occurs.
- Maintain a Clean Record – If you have a history of no claims and good safety practices, you may qualify for discounts.
The cost of insurance for a commercial cleaning business can range from $1,000 to $4,000 per year for a small operation, with larger businesses or those offering specialized services paying more. It’s essential to get quotes from different insurance providers to find the best coverage for your needs.
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