What type of insurance do I need to run a cleaning business in Michigan?

Question

My son's teacher said that the preschool he attends are taking bids on cleaning there facility but you need to be insured so I was just wondering if anyone knows what type of insurance I would need to carry to place a bid. There current company is not very good cleaners and they want to hire me but I need insurance please help! but please if you dont know the answer please dont post! Thanks

Answer 1

OK, when they're taking BIDS, most of the time, you need a BID BOND.  They will have the specs - specifications - of exactly what insurance they require, in the "bid specs".  Most likely, they'll require general liability and workers compensation, likely auto liability also.  Probably, they'll want a performance bond, or fidelity bond.  But in order to get that bid bond, you need to have the rest in place, FIRST.  

Short answer - it's probably not worth it.  Legally, you only need to carry insurance if you have employees, and that would be workers comp.  But insurance for janitoral/cleaners is EXPENSIVE.   The liability starts at $1,000 and the workers comp starts at $1500.

Answer 2

The basic business insurance normally includes general liability insurance, commercial auto coverage, workers' compensation and equipment breakdown. These may be all combined into a package policy, but you need to check with your agent to make sure you have coverage in these four areas. Besides the coverage listed above, the janitorial service industry has risks unique to it and you should make sure that you are covered for the following:

*Lost key coverage. This should pay to replace lost keys, adjust locks, or purchase and install new locks.

*Coverage for property in your care. This may include rental property, such as carpet cleaning or floor care machines.

*Theft of customer property coverage. This should cover losses incurred for theft and losses that occur from negligence, such as an employee who forgets to lock a building and allows a thief to steal your customer's valuables.

*Limited pollution coverage. As a cleaning company your employees will most likely be working with an assortment of chemicals. You need to have coverage for accidental job site pollution that may arise from chemical spills.

*Business income coverage. If your biggest customer went out of business and your main source of income dried up, could you stay afloat until you had a chance to sign on new clients?

*Office equipment coverage. Check your policy to make sure you have enough coverage for your computers and office equipment. If you have a home-based business you might be able to get a rider attached to your homeowner's insurance policy. How do you choose an insurance carrier? To make sure that you get the proper insurance and the right types of coverage you should look for an agent that has experience working with businesses that provide janitorial services. Remember, the more your insurance agent knows about your business, the more confident you can be that he or she will provide a comprehensive program that meets your needs.

Look for a company that is financially strong and stable. It is also important to know that the company has a solid history of paying claims in a timely manner. Once you have an agent that understands your company's needs you should consider buying all of your business insurance policies through one company. This saves on paperwork and you are more likely to make sure that all of your various coverages work together.

Once you have your policies in place don't forgot about your insurance. Keep your agent informed of any changes in your business, i.e., new business location, new vehicles, etc. Also, make an inventory of all of your property; keep one copy at the business and one copy of the inventory off-site. Provide a good safety training program to your employees to reduce the likelihood of accidents and injuries.

Any one incident that happens could cause serious problems for your business and without the proper insurance coverage, could put you out of business. Taking time before something happens is vital to make sure that your business will survive if a catastrophe happens. Getting suitable insurance for your cleaning company can be a complex and confusing task. But having the proper insurance coverage for your company is something you can't afford to be without.

Answer 3

you need  liability insurance, and workmans comp insurance.

Here in NJ they are super expensive.

good luck

any more questions about cleaining business...I have alot of anwers :)