Business Insurance for Cleaners
Business Insurance for Cleaners
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Why might cleaning businesses need business insurance?
Whether you’re cleaning houses or wiping the windows of skyscrapers, there are always risks. Third-party Property damage and accidental injuries, and stolen equipment are just some of the incidents that you could come up against each day. And without proper protection, even a small incident has the potential to impact your business and your finances.
Business insurance may offer your cleaning business peace of mind by providing financial protection for certain insurable events, depending on your policy’s terms.
What kind of risks do cleaning businesses face?
Picture this. You’ve just spent the past four hours cleaning your fortnightly domestic job from top to bottom. You’ve just finished vacuuming and as you get into your mopping you accidentally bump a side table, sending your client’s priceless vase crashing to the ground. Without public liability cover, you may be responsible for the cost of the vase out of pocket, unless such an incident is covered under your policy.
Or perhaps you were climbing the stairs with a bucket of equipment, and you accidentally lost your footing, resulting in a sprained wrist that requires a couple of weeks off work to recover. This is where personal accident cover could come in handy.
Or what if your expensive backpack vacuum were stolen from your job site while you were finishing up for the day? Could you afford to replace it yourself, or would you prefer the peace of mind that comes with portable equipment insurance?
Are any of these scenarios sounding a little too close for comfort? For most cleaners, no two days are the same, which often means you’re subject to a number of different risks as part of the job. From providing cover for injury to protecting yourself against financial losses, business insurance might come in handy for you.
What kind of cover might be relevant for cleaners?
Business insurance is an umbrella term. It covers a range of different insurance products that might come in handy for a cleaning business. Here are some of the different types of insurance products that might be worth considering as a cleaner.
Public liability insurance
Public liability insurance is intended to help provide financial protection if a customer, supplier, or a member of the public is injured or their property is damaged due to your business activities (subject to policy terms).
For example, your client could slip on a wet patch, or cleaning chemicals could damage their property. It’s instances like these where public liability insurance could come in handy.
Portable equipment insurance
Do you carry your own equipment, tools, or electronic items to get your job done? Depending on the level of cover you select, portable equipment insurance may cover you for losses or damages to the gear you use for your business.
Personal accident and illness insurance
If you are a sole trader and suffer an injury while cleaning, you could be out of work for some time until you recover. Not only could it lead to loss of income, but you might have to cover a number of medical bills depending on the extent of your injury.
With personal accident and illness insurance, you may be eligible to claim for loss of income if an unexpected injury or illness means you’re unable to work, become permanently disabled or even die (even if the accident happened outside work).
Statutory liability insurance
As a business owner, you have to comply with the thousands of acts of legislation that regulate business activities in Australia. When you’re in the midst of running your own business, it’s virtually impossible to remember each one of these laws. Statutory liability cover is there to protect you if you accidentally breach key legislation while running a business.
*BizCover currently does not offer statutory liability insurance.
Do I need insurance if I operate a cleaning business?
While business insurance is not always a legal requirement to operate a cleaning business in Australia, it can help mitigate financial risks from incidents such as illness, injury, or claims from third parties. Consider your unique business circumstances and any contractual insurance obligations.
In some cases, your clients could have their own insurance requirements that you need to meet before you can work for them. Depending on the type of services you offer, you might also need to meet local council, state, or territory regulations, so it’s important to do your research.
How much does business insurance cost for cleaners?
As a cleaner, you can expect the cost of business insurance to vary depending on a range of factors, like the type of services you offer, the type of cover you opt for, and whether or not you’re covering yourself or a team. For example, insurance costs for a domestic cleaning business are typically cheaper than a commercial cleaning service.
As a general guide, BizCover data indicates that many cleaners paid less than $75 per month for insurance in the 2023 financial year. Your premium may vary based on the type and amount of cover you choose.
How much business insurance might I need?
When it comes to taking out business insurance as a cleaner, there’s no one-size-fits-all approach. Instead, you’ll need to consider a range of factors to decide how much insurance you’ll need based on your cleaning business, including:
- your business structure and whether you’re a sole trader or operating a company with a number of staff
- the types of cleaning services you offer and whether these services are considered high risk, for example whether you work at tall heights or use harmful chemicals for work
- the value of your equipment, property and assets
Assessing these factors helps you determine the types of risks you’re likely to encounter in your line of work. From here, you’ll be better positioned to understand what types of insurance products and how much cover you’ll need.
Helpful tip
If you’ve been working hard behind the scenes to grow your cleaning business, it’s important to make sure you update your insurance cover as needed. If your business has outgrown your current level of cover, you could find yourself out of pocket if you need to make a claim. So make sure you regularly review your business insurance, to minimise surprises in the event of unforeseen accidents and incidents.
Where can I find and compare business insurance?
iSelect has partnered with BizCover to facilitate the comparison of business insurance options for cleaning businesses. Compare quotes from a range of trusted insurance partners online now.