How Much Does Cleaning Business Insurance Cost?

Cleaning company insurance protects business owners financially against a variety of risks, including as a client who slips and falls on a wet floor or an employee who becomes ill as a result of chemical exposure in the workplace. However, how much does it cost?

According to Insureon quote statistics, the typical cost of business insurance for a cleaning firm runs from $96 to $114 per month. However, the final amount you pay will vary substantially based on factors such as the insurer you choose, the coverage types you require, the cleaning services you offer, and your coverage limits. 

Here's a closer look at the average cleaning company insurance costs from different insurers, as well as the elements they frequently evaluate when determining premiums. 

Average Cost of Cleaning Business Insurance

The cost of cleaning business insurance varies greatly from one insurer to the next. According to statistics from Insureon, a large commercial insurance marketplace, the average costs from 11 leading insurers are listed below. 

*The rates presented above are based on standard coverage amounts of $1 million per incident and $2 million aggregate.

When comparing cleaning company insurance quotes, keep in mind that not all companies provide the same level of coverage or benefits. While one business may offer a lower price, some coverages may be excluded. Read the fine print to find out what is included.

Factors Influencing Cost

When pricing general liability coverage, BOPs, and workers' compensation insurance, there are numerous considerations to consider. 

General Liability

If your cleaning company is found accountable to a third party for property damage, bodily injury, personal injury, or advertising injury, general liability insurance can help cover the costs. 

The following are the primary factors that influence the cost of a GL policy: 

• Industry: Insurers will assign your company a general liability class code based on the sort of work it does and where it is located.
• Physical business location: If you operate from a commercial facility, insurers will want to know the size, condition, and amount of foot traffic. Insuring larger buildings with increased foot traffic will be more expensive. Your pricing may also rise if the state of your building poses dangers (for example, an older building that is not up to code).
• Services provided: Because the services you provide can increase the risk of your firm, insurers may inquire about your specific offerings. Nationwide, for example, inquires whether you offer floor waxing, remediation work, restoration work, work in high-traffic properties, or work in hospitals.
• Business size: Insurers frequently analyze your company's annual revenue. Larger revenue levels often indicate a larger operation with greater risk. Insurers may also take into account the number of employees you have and the amount of money you spend on payroll.   
• Experience: The level of experience of your company and its operators may be taken into account. Lower charges may be available if you have more experience. 
• Claims history: Insurers may examine your claim history to forecast the risk of future claims. They may inquire whether your company has been involved in any losses or litigation in the past, as well as whether your business insurance has been canceled or non-renewed in recent years for reasons such as non-payment.
• Deductibles: Policy deductibles have an impact on rates as well. Choosing a greater deductible will frequently result in a reduced premium. 
• Limits: General liability plans have different limits. The higher your limitations, the more expensive your coverage.

BOP

A business owner's policy (BOP) combines general liability and commercial property insurance into one policy. The latter covers damage to a structure you rent or own, as well as the property within it, caused by a covered risk such as fire, theft, or burst pipes. 

The cost of commercial property coverage in your BOP is frequently determined by factors such as:

• Building size: The larger your building, the more expensive it will be to repair or replace if it is destroyed. As a result, larger properties cost more to insure. 
• The value of your business property: Because the policy covers property loss and damage, the value of your business property within your building will be a factor in your costs. 
• Approach to property valuation: Insurance companies may offer you compensation based on the actual cash value (ACV), replacement cost value, or fair market value of your commercial property. Replacement cost insurance typically has higher premiums since they replace the covered item with a new one rather than simply reimbursing you for the item's depreciated cash value, as an ACV policy does. 
• Location: The location of your building will also be a factor. For example, areas more prone to crime, fires, or other natural disasters will be considered higher risk.
• Deductible: The deductible you select will frequently affect your premiums. Lower rates are frequently associated with higher deductibles. 

Workers’ Compensation

Workers' compensation helps to cover costs such as missed earnings and medical expenses if your employees experience work-related illnesses or accidents. The cost of coverage will be determined by factors such as your company's location, the number of employees you cover, your payroll, your claims history, and the type of job your employees do.

Top Companies for Cleaning Business Insurance

• Contractors Bonding and Insurance Company (RLI)
• Liberty Mutual Insurance Company
• Hiscox
• AmTrust
• ACUITY, A Mutual Insurance Company
• Rockingham Casualty Company
• The Hartford
• Clear Spring Insurance Company
• Nationwide Mutual Insurance Company
• United States Liability Insurance Group
• Travelers

How to Save Money on Cleaning Business Insurance

• Look around: The cost of insurance varies substantially from one insurer to the next. You can obtain the best overall insurance value by shopping around with multiple providers. 
• Choose vital coverage: The more coverage you purchase, the higher the cost. Examine your company's demands to determine which types of coverage are most helpful and necessary. For example, you could begin with general liability coverage and then progress to a BOP policy later on. 
• Reduce coverage limits: Higher coverage limits are often more expensive. Consider lowering the limitations on specific coverages if you require a lower rate. 
• Increase your deductible: Increasing your deductible will reduce your premium cost.
• Ask about prevention discounts: Insurance companies may provide lower charges if you install fire suppression or security devices.