Accidents at work are one of the worst possible things for a cleaning business owner. No matter how careful your employees and you are, sometimes you can’t avoid property damage or injury.
If your business does not have public liability coverage, you should. You can be assured that if something unfortunate happens and a third party makes a claim against you, you will not go bankrupt.
Why does a commercial cleaning company need insurance?
Public liability insurance protects your business against financial losses if you are found responsible for damage to property, illness, or injury.
Most public liability policies include product liability coverage. It covers those who provide or deliver goods or services (including cleaning) in the event that they cause injury or damage.
Accidents can and do happen. They usually occur when you least expect them. A cleaning business is constantly dealing with heavy machinery and chemicals.
To-day. It’s not exaggerated to say an accident will happen while you are doing your job.
A good public liability policy will reduce the risk of your business being forced to close due to financial losses. You’ll be able to go about your business with more confidence. It’s also good for your business to be insured, as many clients (especially businesses) include liability insurance in their contracts.
How does insurance work for a commercial cleaning business?
You’ll probably need to get more than one insurance policy if you run a cleaning business. Consider the following policies:
Asset Insurance
This type of insurance can cover theft and damage to the items you use for your business. This includes computers, tools, and cleaning supplies.
You can choose from indemnity, which takes into consideration the wear and tear on the item, or replacement, which covers the entire cost of the new item.
Commercial Property
Cleaning businesses are highly mobile. Since you spend most of your day on the move, you won’t usually need an office. Commercial property insurance may be necessary if you have a building for administrative or stock-keeping purposes.
This type of coverage covers damages to buildings, including those caused by fires or floods. Ask your insurer if they will cover damage from earthquakes unless certain information is provided.
You still need to have commercial property coverage even if your business is run from home. It’s because most household insurance policies don’t cover business assets and workspace.
For items with a lower value, you can also buy portable equipment insurance or a general property policy to cover them. This includes electronic equipment, cleaning supplies, and similar items. Ask your insurer what types of events or accidents are covered.
Business interruption
This type of coverage covers losses that occur when you are unable to conduct your business. Business interruption insurance, for example, can pay employees’ wages if they have to stop working due to a natural catastrophe.
Commercial Vehicle
Your cleaning vehicle needs comprehensive third-party liability insurance. It would be best if you also had a private motor policy, as this does not cover the car when it is used for commercial purposes.
What is the best time to buy public liability insurance?
It would be best if you got public liability insurance right away when you begin your business. You can get away with a minimum amount of coverage, even if it seems expensive. As your business grows, it is possible to increase the coverage.
If you want to attract more customers, it’s best to be insured from the start. Most businesses insist that contractors have public liability coverage before they sign contracts.
If you offer B2B services as well, ensure that the other party also has public liability coverage. You’ll both be covered in the event of an accident.
Who Should be covered by your policy?
Everyone in your company should be covered under your policy. You still need public liability coverage even if you are a sole owner in the event that you cause physical or property damage while working in a client’s workplace or general area.
It can be argued, in fact, that sole traders require insurance more than large or mid-sized businesses. You’re more likely to lose your assets if found financially and legally liable for a work-related accident.
There’s also a thing called “key person insurance” if you run a small company. It can cover the costs of losing someone vital to the running of the business, such as the CEO.
What happens if you don’t have insurance and are involved in an accident?
Accident Compensation Corporation (ACC), a New Zealand-based insurance company, provides mandatory coverage for personal injuries. It applies to all: residents, citizens, and visitors. The ACC will cover a percentage of the medical bills if you are injured in an accident on the island.
Some people believe that ACC coverage is sufficient, especially for sole entrepreneurs. The organization does not cover a lot. They won’t pay for legal defense costs, for example. You can end up in a dire financial situation even with ACC’s help.
The conclusion of the article is:
Insurance is essential if you are looking to protect your business. A good insurance policy allows you to focus on your work, your network, and your success.