INSURANCE COVERAGE FOR A CLEANING BUSINESS
Are you thinking of opening a cleaning business? Be sure to consider the type of insurance coverage
you will need.
In the early planning stage of your business, you will need to contact an insurance agent who is knowledgeable about your
area of operation. Ask owners of similar businesses to recommend agents. Second, you will need to discuss the details of
your business
, its exposures and the different types of insurance that are available to protect it. Your agent should be able
to tailor coverage that is specific to your company.
The following are types of insurance coverage that may be important for owners of cleaning businesses to consider. You
may not need all these coverages, and some can be bundled as a commercial package policy or business
owner’s policy. A
bundled insurance policy could save you money. Work with your agent to ensure you have adequate coverage.
COMMERCIAL GENERAL LIABILITY INSURANCE
A commercial general liability (CGL) policy provides
coverage to a business for bodily injury, personal injury
and property damage caused by your business
operations,
products, advertisements or completed operations. A CGL
policy shields your business from the expenses of out-of-
pocket
court settlements, litigation or rulings awarded by
the courts.
BUSINESS PROPERTY INSURANCE
Business property insurance protects your company’s
physical assets, inventory located in an office space
or
warehouse. This coverage can help protect your business
belongings
from fire, explosions, burst pipes, theft,
vandalism,
and other identified perils. It will replace stolen
office equipment, repair damage to your office if caused by
a covered peril and replace loss of income while physical
structures or office space are under repair.
BUSINESS
INSURANCE
WORKERS’ COMPENSATION/EMPLOYER LIABILITY
INSURANCE
Workers’ compensation pays most of the fees, such
janitorial bond is a contract between three parties—
entity requiring the principal to obtain the bond)
surety (the insurance company issuing the bond). Janitorial
service bonds protect your clients if one or more
steal from your company or the property where they are
working.
as
medical expenses when an employee gets sick or injured
on the job. The employer liability insurance also protects
your business if an employee files a lawsuit claiming the
employer’s negligence caused the injury or sickness.
CRIME INSURANCE
Crime can be a significant cause of loss for businesses
and
generally arise from two main factors: crimes committed
by employees and crimes committed by other parties.
Several coverage options are available to address crime
loss exposures. Employee crimes are addressed through
“employee dishonesty” coverage or a “f
idelity bond.”
Crimes committed by others can be covered under a
general commercial crime insurance policy that covers
crimes such as forgery, burglary, robbery or theft.
REMEMBER
Insurance gives you the peace of mind to operate
your business knowing it is protected from
accidents, theft, legal matters and natural
disasters.
The right policy, or combination of policies, helps
your business overcome a situation that has the
potential to drain your resources and take your
focus away from your operation. Check with a
licensed insurance agent or a licensed insurer to
discuss your business insurance needs.
INLAND MARINE INSURANCE
Standard
property
coverage
is
typically
designed to
protect the assets at your business address. But if you
have equipment or materials that frequently move to
different locations, you may need inland marine
coverage. An inland marine policy can cover, for
example, the power cleaners you use to clean floors.
BAILEE’S CUSTOMERS INSURANCE
Bailee’s
customers insurance provides
coverage
for
ONE MORE THING TO KNOW
You can perform an online search to locate an agent
or insurer. Access the insurance licensing portal on
the DISB website or contact our office
to verify
whether the agent or insurer is licensed
or
authorized to conduct business in the District of
Columbia.
the legal liability of damage or destruction of a bailor’s
property while under the care of a bailee. A bailee is a
person or organization that has temporary possession of
someone else’s personal property, such as a cleaning or
janitorial service provider.
UMBRELLA LIABILITY INSURANCE
Umbrella liability insurance provides additional liability
protection. It covers claims made against you that might
exceed your insurance policy’s liability limits.
Additionally,
it may provide coverage for claims made against you
that
are not listed under your regular insurance policies, such
as slander and libel.
If you have questions about insurance, please call
DISB at 202.727.8000 or visit DISB.dc.gov.
DISB MISSION
Our mission is three-
fold: (1) cultivate a regulatory
environment that protects consumers and
attracts
and retains financial services firms to the District;
(2) empower and educate residents; and (3)
support
the development and expansion of business.
BOND
A bond issued by a licensed surety
company may be
needed when a license or permit is required by federal,
state or local municipalities to ensure that the services
promised by a
business are completed according to
regulation. Surety bonds for cleaning businesses
SOCIAL MEDIA
DISB X: @DCDISB
DISB Facebook: DISBDC
BUSINESS OWNERS POLICY (BOP) INSURANCE
A BOP combines three essential types of coverage many small
business owners may need, such as: g
eneral liability
insurance, commercial property insurance, and business
income insurance. With BOP insurance you benefit from
getting one bundled policy that is less expensive than separate
coverage.