Why is business insurance a must for carpet cleaners?
Because of the high risks associated with cleaning a client's belongings, insurance is critical for protecting your business from costly claims. Should an employee steal or damage an expensive rug, insurance will help with reimbursement. Plus, some policies are required by laws, contracts, or leases.
Get the right insurance
6 insurance policies every carpet cleaning business should consider
These upholstery and rug insurance policies protect against the most common risks carpet cleaners face.
General liability insurance
This policy protects carpet cleaners against legal costs related to third-party property damage and injuries, such as a client tripping on a cord. It's often required by commercial leases and contracts.
- Slip-and-fall injuries
- Accidental damage to a client's property
- Libel and other advertising injuries
Workers' comp insurance
Most states require carpet cleaning businesses with employees to carry workers' comp. Health insurance can deny medical expenses for work injuries, which makes it valuable for sole proprietors too.
- Medical bills for injured workers
- Disability benefits
- Lawsuits from workplace accidents
Commercial auto insurance
Business vehicles owned by a carpet cleaner must have this coverage to comply with state laws. It helps pay for financial losses in an accident, including legal fees and property repairs.
- Auto accident injuries
- Auto accident property damage
- Theft of a cleaning van or other vehicle
Business owner's policy
Small business owners and contractors are usually eligible for a business owner's policy (BOP), which bundles general liability coverage and commercial property insurance at a discount.
- Client bodily injuries
- Damaged customer property
- Stolen or damaged business property
Commercial umbrella insurance
Umbrella insurance boosts the protection of your general liability, commercial auto, or employer's liability insurance policy once the limit is reached on a claim.
- Personal injury lawsuits
- Auto accident lawsuits
- Workplace injury lawsuits
Fidelity bonds
Clients might ask your professional carpet business to secure a fidelity bond, also called a janitorial bond. It reimburses the client in the event of employee theft.
- Theft of cash or property
- Forgery
- Illegal funds transfer
Carpet cleaning insurance costs
From our customer data, here's a quick look at the average costs of common rug and upholstery insurance policies:
General liability: $53 per month
Business owner's policy: $74 per month
Workers' compensation: $127 per month
Factors that can influence cleaning business insurance costs include:
- Cleaning services offered
- Number of employees
- Types of insurance purchased
- Coverage limits and deductibles
- Claims history
- Additional insureds
Hear from business owners like you who purchased insurance coverage.
Why carpet cleaners choose TechInsurance
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Common questions about business insurance for carpet cleaning professionals
Review answers to frequently asked questions (FAQs) about carpet cleaner insurance and more.
Do carpet cleaners need a bond?
Carpet cleaning businesses can benefit greatly by carrying a janitorial bond. Even when not required for a business license or to work in your locale, there are many reasons to have one:
- It protects customers in the event an employee steals from them. In that case, your client would be reimbursed by the bond up to the policy limit.
- Clients may request it, especially government entities. In some cases you'll have to carry a bond before your employees are allowed on their premises.
- It attracts new customers since clients usually prefer to work with a bonded and insured company over one that doesn't carry this protection. A bond shows clients your carpet cleaning services are reliable and guarantees reimbursement in the event of theft.
It's important to note you may also see this kind of bond referred to as a surety bond or fidelity bond.
What other insurance coverage do carpet cleaning businesses need?
Carpet cleaning businesses may need additional types of insurance, outside of a general liability insurance policy and workers' compensation insurance, to cover all risks and liabilities they may face.
Some carpet cleaning insurance policies to consider for complete peace of mind are:
- Hired and non-owned auto (HNOA) insurance covers work-related accidents if you or your employees use personal, leased, or rented vehicles for work. Most personal auto insurance policies are unlikely to cover these types of claims, like taking supplies to a job site, running a work errand, or visiting a client's home in your personal car.
- Errors and omissions (E&O) insurance, also known as professional liability insurance, safeguards your business if a client sues you due to a mistake or oversight. For example, if you recommend a rug cleaning solution that ultimately damages their rug, you could be sued for the replacement of the carpet and your insurance would handle the financial burden.
- Cyber insurance helps pay for legal expenses, credit monitoring services, and other recovery costs if a data breach or cyber attack affects your carpet cleaning business or clients.
- Inland marine insurance safeguards your business property (such as products, tools, and equipment) while it's in transit or stored at an off-site location. Specifically, contractor's tools and equipment coverage is perfect for cleaning companies that use cleaning equipment valued at less than $10k and is less than five years old, like a carpet cleaner.