Janitorial Insurance: Protect Your Business and Employees

As a janitorial business owner, you understand the importance of a clean and safe environment for your clients and their customers. However, accidents happen, and when they do, they can be costly.

That's where janitorial insurance comes in. Janitorial insurance protects your business and employees from financial losses due to property damage, liability claims and workplace injuries. 

What Is Custodial Insurance?

Custodial or janitorial insurance describes insurance policies specifically designed for janitorial, cleaning and custodial service providers. It provides coverage for accidents, injuries and damages that may occur while providing cleaning services to clients. This coverage ensures that your business assets and employees are protected, giving you peace of mind.

Top Risks to Cleaning Companies

Janitorial businesses face a variety of risks that can lead to insurance claims. Here are some of the most common claims and risks to consider:

• Slip and fall accidents: Wet floors or debris on the ground can cause customers or employees to slip and fall, resulting in injuries and potential liability claims.
• Property damage: Accidentally damaging a customer's property, such as breaking a window or damaging a piece of furniture, can result in a liability claim.
• Theft or loss of equipment: Janitorial businesses often use expensive equipment, such as floor buffers and carpet cleaners. If this equipment is stolen or lost, it can be a significant financial loss.
• Employee injuries: Workplace injuries can be a significant cost for any business.
• Employee theft: Unfortunately, employee theft can occur in any business. This could include cleaning supplies or equipment, such as vacuum cleaners or floor buffers, and can have a significant impact on the business's bottom line, as it can result in the need to replace expensive equipment. It can also disrupt the cleaning schedule if the stolen items are essential for completing certain jobs.

Types of Janitorial Insurance

There are different types of janitorial insurance policies available. Below are the most common ones.

Janitorial Liability Insurance

Janitorial liability insurance, also known as general liability insurance, is designed to protect your business against third-party claims of bodily injury or property damage. This policy covers damages or injuries that occur while you or your employees are providing cleaning services. For example, if you or an employee accidentally break a client's window while cleaning, this policy would cover the damages.

Janitorial Workers’ Compensation Insurance

Workers’ compensation insurance provides coverage for workplace injuries or illnesses that your employees may sustain while working. This policy covers medical expenses, lost wages, and other related costs. Having this policy can help protect your business from being sued by an employee who gets injured on the job.

Understanding Your Legal Obligations as an Employer

Do you have employees or subcontractors? It’s important to ensure the safety of your workers, protect your business from potential liability claims and maintain compliance with state workers’ compensation laws. That’s where workers compensation insurance comes in. 

If you have employees, most states require that you provide workers’ compensation insurance to cover any injuries that may occur while on the job. However, if you are self-employed or work with subcontractors, it is important to check your state's workers' compensation laws to determine your coverage requirements. 

Workers’ comp insurance is especially important in the janitorial industry, as many tasks can be physically demanding and may put workers at a higher risk for injuries such as sprains, strains and repetitive stress injuries. Exposure to harsh chemicals in cleaning products can also cause tissue or respiratory damage, making it crucial to provide your employees with proper training and protective equipment.

Custodial Services Professional Liability

Professional Liability insurance provides coverage for claims that may arise from professional services that you or your employees provide. For instance, if the cleaning crew accidentally uses the wrong cleaning product on a delicate piece of furniture, the client may file a claim against the cleaning company for the cost to repair or replace the damaged item. Professional liability insurance can provide coverage for such claims, protecting the cleaning company from financial losses and potential lawsuits.

Janitorial Bond Insurance

Janitorial bond insurance coverage for theft or damages caused by your employees while working on a client's premises. This policy provides peace of mind for clients who may be hesitant to hire a cleaning company, particularly if the cleaning crew will have access to the building outside of normal business hours.

Janitorial Services Business Owners Policy

A Business Owners Policy, or BOP, is a comprehensive insurance policy that includes multiple coverages in one policy. This policy typically includes general liability, business property and business interruption coverage. Bundling these policies together into one policy saves the business owner money, as well as provides the company with a more comprehensive coverage package.

Umbrella Insurance for Janitorial Services Businesses

Umbrella insurance is an important coverage option for janitorial businesses. It provides additional liability protection beyond the limits of your primary insurance policies. If a claim exceeds the limits of your general liability or workers' compensation policy, an umbrella policy can help cover the remaining costs. 

For example, let's say your janitorial services business is sued for $2 million in damages, but your general liability insurance policy only covers up to $1 million. In this scenario, umbrella insurance can cover the additional $1 million, so you don't have to pay out of pocket or risk bankruptcy.

This coverage can help protect your business assets and provide peace of mind for you and your employees. When selecting an umbrella policy, it's important to consider the coverage limits and ensure that the policy provides protection for the specific risks your business may face.

Benefits of Janitorial Insurance

Having janitorial insurance provides several benefits for your business, including:

• Protection for your business assets and property: Janitorial insurance policies provide coverage for damages to your business property, including equipment, supplies and tools.
• Protection against liability claims and lawsuits: With liability coverage, you are protected from claims of bodily injury, property damage and other related issues that may arise while providing cleaning services.
• Coverage for workplace injuries and illnesses: Workers’ compensation coverage ensures that your employees are covered in case they get injured while working.
• Professional liability coverage: This covers your business in case a client claims financial loss due to your work or advice, such as causing damage to expensive flooring or failing to complete a cleaning job according to a contract.
• Peace of mind for you and your employees: Knowing that your business and employees are protected can give you peace of mind and allow you to focus on providing high-quality cleaning services.