Five Factors To Consider When Insuring A Cleaning Business

Contributed by CoverWallet.

Businesses in any industry face specific risks and liabilities, and the cleaning industry is no exception. Between potential damage to property, employee accidents, client lawsuits, automobile accidents, and more, unfortunate scenarios can hurt the financial well being of a cleaning business.

It’s true that in some cases businesses might be required to have insurance, but with so much at stake, insurance is also the only way to ensure they have the resources to keep operations going in the event of an unplanned incident. One single lawsuit can cost a business millions of dollars, resulting in a significant loss of funds and putting it at risk of potential closure.

With dozens of coverage options, classes, carriers, and varieties, choosing the right policies can be confusing. These are the key things businesses should keep in mind when they are renewing or buying insurance.

1. Understand the specific risks of the business

Every business is unique and faces specific liabilities based on things like the size of the company, location, and the type of work they do. Businesses need to assess risks by taking inventory of everything. Is the business cleaning a laboratory? A gym? An office? They all have different risks. Are employees working with heavy machinery? Are they exposed to potentially harmful materials? Is the equipment used expensive to replace?

Keep in mind that insurance carriers will also assess business risks to come up with the right coverage, but ahead of that, businesses should prioritize the risks to make sure that the most pressing concerns are properly addressed and covered by the policy.

2. Use an advisor who knows the industry

When it comes to insurance policies, cleaning companies have specific needs and requirements that not everyone knows about. It is important to work with advisors that understand the ins and outs of the cleaning business. An advisor that is well adept to the cleaning industry understands the risks and the unique coverage that businesses in the industry need.

Good agents will walk businesses through the risks and the policies that cover them, and they will get quotes from carriers and help businesses decide on the coverage that is best for them.

3. Prioritize value over price

For smaller businesses and those starting out, cost plays a significant role when deciding which insurance policy to get. Although the most affordable policies will save money, insurance should be thought of as a necessary investment that will safeguard assets in the long run. One single lawsuit can cost a business millions of dollars and sink them immediately.

Prioritize the scope of coverage, fast payouts, steady premiums, and transparent appraisal over low insurance prices. Businesses should make sure to have the key policies needed for operations such as General Liability, Property Insurance, and Surety Bond. They should gather all relevant information about the various insurance policies essential for running a cleaning business.

4. Read the small print

Knowing the basics of insurance is not enough to ensure proper coverage. Businesses should review all listed details, including the small print that is often neglected by buyers. Remember that each policy comes with deductibles, limits, premiums, and exclusions, so it is essential to make sure there are no gaps in the policy.

Take a deductible for one example. It is the amount a business needs to pay out of pocket before a business can claim any insurance. Usually, most policies with high deductibles come with lower premiums (the monthly or annual payment that is the cost of the policy). But what if a business can’t afford to immediately pay such high amounts when a claim comes up? Businesses need to be prepared and understand when insurance kicks in and what they can afford to pay.

5. Be prepared with the right information to get insured quickly

The process requires information to actually get coverage. There are important things businesses can prepare ahead of time to ensure a smooth and stress-free insurance application.

The primary information needed varies, but most insurance companies will require businesses to present contact information, the number of employees, types of vehicles businesses used, annual revenue estimates, risk exposures, if there have been claims in the past three years, a copy of a lease contract, and other licenses or permits.

It is essential for businesses in this industry to have the right insurance. When businesses have the right insurance in place they have the ability to focus on what matter most - their business, their customers, and their employees.

Jim Loughlin is a well-respected insurance industry veteran with more than 20 years of experience. He is currently the Sales Director at CoverWallet, a tech company that makes it easy for businesses to understand, buy, and manage insurance - all online and in minutes.