Janitorial Insurance, Cleaning Insurance, Bonding and
Lost Key Coverage
The type of insurance you want for a cleaning service is pretty much the same as every other contractor and business. You need to have insurance in this business. Why? almost every commercial account will ask for it, and the residential market customers are a more smarter customer. They want to make sure you are insured and bonded. It does not mean you have to go out and buy a million dollar policy. Start off with a $200,000.00 general liability policy, $5000 in lost key coverage and a $10,000 surety bond.
This insurance policy also covers your business equipment ,computers, all your business items. That is another good reason to have it. There was a member of IJCSA who was just starting his business. His van was stolen with all the cleaning tools and equipment was stolen also. The insurance company gave him a check to replace everything. Insurance is good!
I`m not here to sell you insurance, so call around and find the best quote. Even the IJCSA sponsor for insurance and bonding price fluctuates, but you should pay under $500 for the entire year coverage.
You also can increase your liability policy at anytime if a customer requires you to do so.
Here is a problem most cleaning and janitorial services also have. They do not get insurance. They get a call for a good job. They submit a proposal for cleaning to the manager or owner of the property. They try to be sneaky, and not include the insurance certificate in the proposal. So there price is good, the potential customer calls and asks about insurance. They respond with we do not have insurance, they try to cover then and say they will get it. The customer then realizes they are dealing with small potatoes, and they more than likely do not get the job.
My advice get insurance, bonding and lost key coverage!
Lost Key Coverage- Lost key coverage is to protect your pocketbook, in case you our your staff loses the keys to a building. It`s good to have, better than personally paying for all the locks to be changed in a building. Especially if there are 50-100 doors that the locks need to be changed.
Bonding- Is used to protect your business from your own employees theft. If your employee would steal something at an account. That business has to file charges against the employee, prove him or her guilty, then your bond takes over. The insurance company reimburses the client. (NOTE- Very rarely does this happen, you will just lose the account before action is usually taken. You yourself can try to file charges against the employee, to start the process of reimbursement for the client. This is also a hard legal process and the final decision will come from your local city attorney.