FRIDAY, NOVEMBER 18, 2011
Commercial General Liability and Property Insurance for Janitorial Services Operations
bu Aya Mus, Illinois Janitorial Insurance Expert in Chicago
Owners of janitorial businesses spend lots of time establishing and growing their businesses. As janitorial business grows the need for good insurance protection becomes very important. There are many insurance protection plans for janitorial services offered through the independent insurance agent network.
Definition of Janitorial General Liability Insurance
Janitorial liability is a commercial general insurance that helps protect the janitorial business from potential liability expenses that may incur due to bodily injuries and property damage caused by negligent accidents caused by the insured business. The backbone of any commercial policy for janitorial business is the liability part of the policy.
General liability insurance for janitorial services may come as a monoline policy (only liability is offered), a commercial package policy (liability and some property coverage) or as a business owner policy (BOP). Business owner policies for janitorial services offer more comprehensive coverage. In Chicago there are several insurance companies that offer more comprehensive janitorial business owner policies.
Besides the main commercial general liability coverage, a janitorial liability section may include coverages such as:
Care, Custody and Control - This is coverage for damages to property left under the care, custody and control of your business and its employees.
Theft Legal Liability - Covers damages resulted from failure of the janitorial business in securing customers' premises (Forgetting to lock customer's doors leading to burglarizing their premises.)
Blanket Additional Insured - This will automatically grant an 'insured status' to anyone who becomes eligible to be listed as additional insured per contracts and agreements.
Waiver of Subrogation - Providing an automatic waiver of recovery from third parties if that waiver is expressed in a written contract of the insured.
Business owner policy for janitorial business includes certain property coverage. Prominent property coverages for janitorial businesses include:
Tools and Equipment Coverage - This will cover the janitorial business own tools and equipment used at customer's locations. Coverage may be expanded to include tools and equipment owned by employees of the business.
Business Income and Extra Expense - This will provide protection for lost income when a covered loss occur.
Data Processing Coverage - Covers losses to computers and computer programs and data because of covered loss.
Employee Dishonesty for Janitors - Coverage for dishonest acts of employees such as theft of money, securities or properties.
Additional Coverages for Janitorial Businesses Not Typically Included in BOP. The following is a list of additional coverages for janitorial services that are not typically included in the business owner policies:
Commercial Auto Coverage - Janitorial business autos need special and separate coverage under a commercial auto policy.
Workers Compensation for Janitorial Employees - Workers compensation coverage for janitorial employees come separate from BOP.
Employee Benefit Liability - This will cover any error and omission or professional liability lawsuits brought against the business for reasons related to administration of employees benefits.
Employment Practice Liability - Coverage for wrongful employment practices of the janitorial services (such as wrongful firing of an employee).
Umbrella - Extends the liability coverage for certain coverages (liability, business auto, workers compensation), to a much higher limits such as an additional $1 or $5 million.