Do i have to get insured for my cleaning business?

Question

ok so its just me and my friend (business partner, we are in the process of getting our business together in the mean time we are just cleaning places with out insurance. i know i will need it incase something should happen. but do i really need the bond insurance as well? its only me and her and she would be co business partner or whatever you call it lol

we are going to get a license soon but we dont rent out a building for this business because we dont really need one if its going to be just us.

Answer 1

OK, most people doing this, don't get insurance or bonds.  That's because it's not cost effective.

I've never written a cleaning service general liability policy, for under $1,000.  That's a lot of houses, just to pay the insurance.

And that bond, isn't going to cover if you or your partner steals something, or breaks something.  ONLY EMPLOYEES, the one you're thinking about.  And if you get a different kind of bond, you have to personally guarantee it.  That means, if the insurance company pays out, YOU have to pay them back.

Listen.  This is important.  Don't take advice about something this important from a bunch of anonymous yahoos here.  Go sit down and talk with your homeowners agent, or your car agent, or another LOCAL AGENT.  They're going to have experience with LOCAL laws and LOCAL coverage quotes.  

Whether or not you have insurance, that's not going to protect you from being sued.  And insurance and/or bonding never covers EVERYTHING.  So it's really important to spend the time to get the information (and no one here can type up enough!), so whichever way you decide, it's an INFORMED DECISION.

Answer 2

You definately need Liability.  Protect yourself and your clients.  Some accounts may require that you have a Bond, ask your agent.  FYI - if you need a bond...they are inexpensive.  Maybe $200 per year.

Answer 3

If you want to run a compentant company the answer is yes.  Do you have to no.  You can drive a car and not have insurance but if you cause harm to someone the court will come after you and you dont have anyone to represent you.  I would highly suggest that you invest in the cost of the policy.  I would not let you clean my home with out insurance as it could cost me dearly.  Hope that helps.

Liability insurance will protect your customers if you break something or start there place on fire.  That is the coverage that you would need.

Answer 4

You can always take the risk, but what if someone accuses you of stealing something from their building while you are cleaning. Even if you are accused falsely, it could be a big mess if you aren't bonded. Plus, consider it good marketing. People just feel better about using people who are adequately insured and who are completely bonded (especially when you will be working on their property). Don't put off getting a license. In most jurisdictions, you have to have an occupational license before you can even do business legally.