Janitorial businesses are exposed to certain legal actions and property losses, just like all other businesses. Their property can be destroyed as a result of fire, theft, accidental breakage, water damage, etc. Legal actions can also be brought against janitorial services because of bodily injuries or property damages that the janitorial service business causes to other people. These risks and others can be protected against by insurance policies. Additional important insurance coverages needed by janitorial services include workers compensation, commercial auto, bonds, and umbrella.
Property Coverage for Janitorial Services
Property insurance for janitorial services may cover the building they occupy (if they own it or if they have to insure it), business personal property such as office furnishings and equipments. Many home based janitorial services may waive these coverages because they are not large enough. Another form of property coverage is inland marine to insure cleaning equipments, tools, and supplies while working at different service locations.
Legal actions against the janitorial services may be brought by the its customers or the public for property damages and bodily injuries that the janitorial services' negligent acts cause to them. This may include bodily injury or property damage to clients because of improper cleaning/ maintenance process or procedure. A janitorial commercial general liability will offer protection for the business against such legal actions at the business premises at the remote client sites.
Commercial General Liability for Janitorial Services
Pricing and eligibility for commercial general liability is based on the size of the contractor (measured by total annual receipts) and degree of risk. The nature of the janitorial services offered vary from business to another. For that reason, insurance companies will want to know more facts about the business such as information about experience; clients type and amount of business done with them (Aircraft, apartments, constructions make-ready, grocery store and supermarkets, convention halls, hospitals & hotels, offices, commercial and industrial facilties).
Type of operations performed may also affect eligibility and pricing. Under the term 'Janitorial Services' some business may be performing a variety of services that have different degrees of risk, therefore, different eligibility and pricing. These operations may or may not include light carpentry; carpet/ upholstery cleaning; construction sites cleanup, accident sites cleanup, floor stripping/ waxing; landscaping and plant/shrub service; sandblasting, restaurant hood cleaning, snow plowing, window cleaning; etc. To get the proper coverage a complete list of activities must be provided to the insurance company before coverage is obtained. A low priced policy that does not offer the proper protection is an improper policy.
Commercial Auto Insurance for Janitorial Services
Commercial auto coverage is needed to protect the janitorial business from any auto related accident lawsuits against the business. Cleaning and janitorial equipment and tools should be covered under inland marine coverage, not under auto insurance.
Pricing and eligibility factors include garaging location of the business vehicles, weight of vehicles, radius of operations, ages and riving history of drivers.
Workers Compensations for Janitorial Services
Work injuries can cause a business aggravation and financial loss. Workers compensation is a legally mandatory coverage to protect employers from legal actions of employees for work related injuries. Pricing for workers compensation is always tentative and is a projection for the final number of the projected next twelve months payroll. At the end of the policy term a final audit of payroll is conducted by the insurance company and a final premium charge is set. Adjustment for any overcharged or undercharged premiums will take place at the end of the policy term.
Umbrella Insurance for Janitorial Services
An umbrella policy provides extra liability coverage above the limits provided by the underlining liability policies. The underlining policies include commercial general liability, business auto liability, and workers compensation. Pricing of umbrella is based on the desired limits (ie 5 million umbrella is more expensive than 2 million), scope and nature of the underlining policies.
Bond and Bonding for Janitorial Services
Some janitorial services may need fidelity bonds to protect themselves from acts of dishonesty of their employees when they work with customers (an employee steals property of a client.) License/ permit bonds may be required from fewer janitorial services that are involved in any remodeling services where local authority permits are required. The pricing for the bonds is based on limits of coverage and size of the business.
Insuring Your Janitorial Services
Insurance for a 'carpet/ upholstery cleaning' janitorial services and 'accident site cleanup' janitorial services is not the same! The first class is a low risk class and is accepted by many standard and non standard companies, mostly at low price. The second class where hazardous chemicals may be used is surely not acceptable by the vast majority, if not all, of standard insurers and may only be accepted with fewer non-admitted carriers. For that reason, janitorial services that perform riskier operations are encouraged to deal with independent insurance agents who represent more than one company. Captive agents who deal strictly with one company may not be able to be as effective as other independent agent for janitorial services.
Insurance Navy is a leader in the business insurance. Our agents have been serving the Chicago area for more than 20 years. Our agency represent dozens of insurers.
To get a free insurance quote for your janitorial services click the link or call us a commercial agent at (708) 233-4848.