Starting a cleaning business in Ontario is one of the easier industries to enter.
According to Ontario Business Central, there are plenty of opportunities and minimal startup costs required so the potential for success is huge.
Like all small businesses in Ontario, one of the most important parts of starting and growing a successful business is to make sure it’s properly protected with a strong commercial insurance policy.
WHAT IS CLEANING BUSINESS INSURANCE?
Cleaning business insurance is a policy that is customized to cover the specific needs of cleaning professionals and businesses.
Often requiring visits to multiple job sites using potentially damaging chemicals and equipment, your cleaning business must be properly insured.
GET A FREE CLEANING BUSINESS INSURANCE QUOTE
WHAT TYPES OF CLEANERS NEED BUSINESS INSURANCE?
If you’re an employee of a cleaning company you are more than likely covered under your employer’s business insurance policy and do not require one for yourself individually.
However, if you operate your own cleaning business, regardless of type or size, you need to make sure you’re fully protected.
- Pressure washing
- Window cleaning
- Janitorial services
- Commercial and residential
- Carpet cleaning
- Duct cleaning
These are all examples of the types of cleaning businesses that benefit greatly from insurance. In some cases, you may even be required to have business insurance to operate on a client’s property.
WHAT DOES CLEANING BUSINESS INSURANCE COVER?
A cleaner’s business insurance policy may cover any or all of the following:
LIABILITY INSURANCE
One of the most important coverages for a cleaning business is Commercial General Liability (CGL) Insurance.
Liability insurance helps protect you in the event of bodily injury to others as related to your business operations. Don’t forget, that your insurance policy includes the legal defense of your business.
EXAMPLE SCENARIO: Say you are a commercial cleaner who forgot to put up caution signs around a recently cleaned floor and someone slips and falls. Without CGL you would be vulnerable to a potential hefty lawsuit against your company.
Read 7 things a cleaning business can do to reduce their liability risk.
EQUIPMENT INSURANCE
Depending on the type of cleaning business, there may be significant equipment involved.
- Floor buffers
- Pressure washers
- Vacuums
- Steam cleaners
The value of equipment can add up so making sure they’re covered in the event of damage or theft is important to the long term stability of your business.
POLLUTION LIABILITY INSURANCE
Nearly all types of cleaning businesses involve some type of cleaning chemicals.
Also known as environmental insurance, this coverage can cover the costs associated with any property damage or impacts to the health of your customers caused by toxic substances you have used.
EXAMPLE SCENARIO: Without being aware of it, you have been using a cleaner on a customer’s carpet that has been reacting poorly and causing bacteria growth. Your pollution liability policy will step in to cover any repair or health expenses that resulted from this activity.
COMMERCIAL AUTO INSURANCE
If you use a car, truck or van for any business-related activity, you need commercial auto insurance.
This is especially true for those cleaners who go from location to location during the day. Even if you go to and from the same place each day, if you’re hauling equipment for your business then commercial vehicle insurance is still a must-have to keep you protected.
HOW MUCH DOES CLEANING BUSINESS INSURANCE COST?
The average cost range for a cleaning business insurance policy is around $500 to $1,500.
Since each policy is customized to match the needs of different businesses, few policies cost the same and depend on factors like:
- Type of cleaning business
- Size of business/number of employees/annual revenue
- Experience of the owner
- Where the business is located
- The total value of equipment
With nearly 30,000 commercial cleaning businesses in Canada (a number that is expected to keep growing with increased demand), the cleaning business insurance industry is there to meet the demand and keep your business protected.
Erie Mutual Insurance proudly serves the commercial insurance, farm insurance, home insurance and auto insurance needs of members throughout Southern Ontario including Haldimand, Niagara and Hamilton.
Please don’t hesitate to contact us with any questions you may have about this or any other topic related to your insurance.
