What insurance do I need for an LLC cleaning business?

While an LLC can protect you personally from liabilities, you still need to equip your cleaning business with the right insurance to mitigate risks.

Aditya Raghunath - Writer for NEXT Insurance
By Aditya Raghunath
Michelle Meyer - Editor for NEXT Insurance
Edited by Michelle Meyer
Matt Crawford for NEXT Insurance
Fact-check by Matt Crawford

Published June 5, 2023.

Just as a mop wipes away the grime, the right insurance for your LLC cleaning business can help with potential financial risks. Here are different insurance policies you can consider for your LLC cleaning business:

  • General liability insurance
  • Errors and omissions (E&O) insurance
  • Workers' compensation
  • Commercial auto insurance

1. General Liability insurance

Imagine a client slips on a wet floor or one of their valuable items is accidentally damaged during cleaning — general liability insurance can help cover related expenses.

General liability insurance can help you cover costs like:

  • Your client's medical fees if they get hurt
  • Repair or replacement costs if you or your employee damaged your client's property
  • Legal fees if your client sues you

» Here's how to avoid the most common cleaning business claims

2. Errors and Omissions (E&O) insurance

Say your client accuses your business of not cleaning their premises to the agreed standard or the cleaning products you suggested damaged their floors beyond repair. Errors and omissions insurance, also known as professional liability insurance, can help shield you from business mistakes, especially if those mistakes cause your client financial harm.

Errors and omissions insurance can help you cover costs like:

  • Legal fees if your client takes legal action
  • Disciplinary costs if you have to appear in front of a review board
  • Publicity costs if you have to manage your business's reputation in light of any business mistakes

3. Workers' Compensation

Your employees are valuable assets. Because cleaning is a physical occupation, it increases the chances that your employees can get hurt on the job. This is where workers' compensation steps in.

Workers' compensation can help you cover costs like:

  • Your employees' medical fees if they get injured, including rehabilitation
  • Lost income if they have to miss work because of their injury
  • Disability benefits if they're permanently injured

» Make sure you're familiar with relevant workers' compensation laws

4. Commercial Auto insurance

Your cleaning team might often find themselves on the road, traveling from one client's location to another. Commercial auto insurance can help protect your employees and business if an accident happens.

Commercial auto insurance can help you cover costs like:

  • Repair costs to fix your vehicle
  • Medical fees if your employees or another party is injured
  • Replacement or repair costs your employee damaged someone's property

Tip:

Consider adding hired and non-owned auto insurance to cover rental and employee-owned vehicles.

» Already have personal auto insurance? Find out if it extends to your business vehicle

Secure the future of your LLC cleaning business

Having the proper protection in place not only safeguards your LLC cleaning business against potential financial losses but also builds trust with your clients.

With NEXT, you can get affordable business insurance that's tailored to your business needs. Simply answer a few questions online and receive a quote within minutes. Once you've purchased your insurance package, you can instantly access your certificate of insurance and share it via the NEXT app.

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