Every cleaning business needs at least general liability insurance, which costs $400 to $1,200 per year. You may also need workers' compensation, surety bonds, and commercial auto coverage depending on your size. This guide explains every type of insurance, what it costs, and how to get the best deal.
Why Do Cleaning Businesses Need Insurance?
Cleaning is a hands-on job. You go into people's homes and workplaces every day. Accidents happen. You might break something valuable, stain a floor, or someone could slip and get hurt. Without insurance, one accident could cost you thousands of dollars and ruin your business.
Insurance also helps you stand out. Clients trust insured cleaners more. Property managers require it. And office buildings will not hire you without it. This guide explains every type of insurance a cleaning business needs, what it costs, and how to get the best coverage for the best price.
At minimum, every cleaning business needs general liability insurance. It's the foundation everything else builds on, and most policies start at just $30-$50/month for solo operators.
What Is General Liability Insurance?
General liability insurance is the most important policy for any cleaning business. It protects you when something goes wrong on a job. And at some point, something will go wrong.
What It Covers
- Property damage — You knock over a pricey vase, scratch hardwood floors, or a cleaning product stains a countertop. General liability covers the cost of fixing or replacing it
- Bodily injury — A client trips over your vacuum cord or slips on a wet floor you just mopped. General liability covers their doctor bills and any legal costs
- Personal and advertising injury — Claims that you said something harmful or copied someone's work in your ads
- Medical payments — Pays for small medical bills from on-the-job injuries no matter whose fault it is (usually up to $5,000 to $10,000)
- Legal defense costs — If someone sues you, general liability pays for lawyer fees, court costs, and settlements up to your policy limit
What It Does NOT Cover
- Worker injuries — For that you need workers' compensation insurance
- Your own equipment — If your vacuum breaks or gets stolen, general liability does not cover it
- Car accidents — Those need commercial auto insurance, not general liability
- Damage done on purpose — If you break something on purpose, insurance will not pay
- Worker theft — For that you need a surety bond, not general liability
Coverage Limits and Cost
Most cleaning businesses carry $1 million per occurrence / $2 million aggregate coverage. Here's what typical policies cost:
| Business Size | Annual Revenue | Annual Premium |
|---|---|---|
| Solo operator | Under $100K | $400 – $800 |
| 1-3 employees | $100K – $300K | $800 – $1,500 |
| 4-10 employees | $300K – $750K | $1,500 – $3,000 |
| 10+ employees | $750K+ | $3,000 – $6,000+ |
What Is Workers' Compensation Insurance?
Workers' compensation covers medical costs and lost pay if a worker gets hurt on the job. The law requires it in most states as soon as you have even one worker. If you do not have it, you could face fines, criminal charges, or have to pay for all injury costs out of your own pocket.
What It Covers
- Medical costs — Doctor visits, surgery, rehab, and ongoing care for work injuries
- Lost pay — Pays part of a worker's wages while they heal and cannot work
- Disability help — For serious injuries that stop a worker from doing their old job
- Death benefits — Gives money to the family if a worker dies from a work injury
Cost Factors
- State rules — Each state sets its own workers' compensation rates and rules. Some states have their own funds. Others require you to buy private insurance
- Payroll size — Premiums are based on your total annual payroll. More employees = higher premiums
- Job type code — Cleaning services have their own code that sets your rate per $100 of payroll (usually $3 to $8 per $100)
- Past claims — A clean safety record lowers your rates over time
Some states require workers' compensation even if you have no workers, as long as your business is a limited liability company. Check your state's rules before you decide you do not need it.
Most states let you buy workers' compensation from any private insurance company. But some states run their own fund.
Washington and Wyoming require you to buy from their state fund. Check our state-by-state guides for the rules where you operate.
What Are Surety Bonds for Cleaning Businesses?
A surety bond is also called a dishonesty bond or janitorial bond. It protects your clients if you or your workers steal something. Insurance protects you, but a bond protects your clients. Being "bonded and insured" is a strong trust signal that sets you apart from your competition.
How Bonding Works
- You purchase a bond — Typically $5,000 to $25,000 in coverage, costing $100-$500/year
- A theft occurs — An employee steals jewelry from a client's home
- Client files a claim — The bonding company investigates the claim
- Client is reimbursed — If the claim is valid, the bonding company pays the client up to the bond amount
- You repay the bond — Unlike insurance, you're responsible for repaying the bonding company
Many clients specifically ask if you're bonded, especially those with valuable items in their homes. The cost is minimal compared to the trust it builds.
What Is Commercial Auto Insurance?
If you or your workers drive for business (carrying supplies, driving between jobs), your personal car insurance may not cover accidents that happen during work. Commercial auto insurance fills that gap.
When You Need It
- Company-owned cars — Any car in your business name must be on a commercial auto policy
- Worker vehicles — If workers drive their own cars for work, you need hired and non-owned auto coverage
- Branded vehicles — If your car has business signs on it, your personal insurer may say no to claims since it is clearly used for work
Coverage Options
- Liability — Covers damage you cause to other vehicles and people (required in all states)
- Collision — Covers damage to your vehicle in an accident
- Full coverage — Covers theft, damage from vandals, weather damage, and other events that are not car crashes
- Hired and non-owned auto — Covers you when workers use their own cars for work (most affordable option)
Costs usually range from $1,200 to $3,000 per year for each vehicle. This depends on how much coverage you get and your driving record. Hired and non-owned auto coverage can be added to your general liability policy for as little as $200 to $500 per year.
What Is a Business Owner's Policy?
A Business Owner's Policy bundles general liability and business property insurance into one policy at a lower price. It is a smart way to get full coverage for less money than buying each policy on its own.
What a Business Owner's Policy Includes
- General liability — Same coverage described above
- Commercial property — Covers your business equipment, supplies, and office contents if damaged, stolen, or destroyed
- Business interruption — Pays for lost income if your business cannot run because of a covered event like a fire or natural disaster
A Business Owner's Policy for a small cleaning business usually costs $500 to $1,500 per year. That is often cheaper than buying general liability and property insurance separately. This is the best value option for most cleaning businesses.
What Is Umbrella Insurance?
Umbrella insurance gives you extra protection on top of your other policies. If a claim goes over the limit on your general liability or auto policy, umbrella insurance pays the rest.
- When to consider it — If you serve high-value properties, have multiple employees, or your annual revenue exceeds $500K
- Typical coverage — $1 million to $5 million in additional liability protection
- Cost — $200-$600/year for $1 million in coverage, making it one of the best values in business insurance
How Much Coverage Do You Need?
The right coverage level depends on your business size, client types, and risk exposure. Here's a guide:
| Insurance Type | Solo/Startup | Small Team (2-5) | Growing Company (6+) |
|---|---|---|---|
| General Liability | $1M/$2M | $1M/$2M | $2M/$4M |
| Workers' Comp | If required | Required | Required |
| Surety Bond | $10K | $15-25K | $25-50K |
| Commercial Auto | If applicable | Recommended | Required |
| Umbrella | Optional | Recommended | Recommended |
How to Choose an Insurance Provider
Not all insurance companies know the cleaning business. Here is how to find the right one:
- Get at least 3 quotes — Compare pricing, coverage limits, and exclusions from multiple providers
- Look for cleaning industry experience — Companies that focus on cleaning or service business insurance know your risks better
- Check their rating — Use AM Best ratings to make sure the insurer is strong and stable (look for A- or better)
- Read what is not covered — Some policies do not cover certain chemicals, water damage, or work in homes where people are present
- Ask how fast they send proof of insurance — You need proof of insurance fast when clients ask for it. Ask how quickly the company can send it
- Look at online options — Companies like Next Insurance, Hiscox, and Simply Business give you quotes right away and can start your coverage the same day
When an office client or property manager asks to be "additional insured" on your policy, this is normal. Your insurance company can add them to your proof of insurance, usually for free.
How Can You Reduce Insurance Costs?
- Bundle policies — A Business Owner's Policy is almost always cheaper than buying general liability and property insurance one at a time
- Choose a higher deductible — A bigger deductible means a lower price per month. Pick a deductible you could pay out of pocket without stress
- Keep your claims record clean — Every claim you file can raise your future costs. Pay for small problems yourself when you can
- Set up safety training — Write down your safety steps. Some insurance companies give discounts for training programs
- Pay once a year — Paying monthly often adds extra fees. Paying the full yearly amount saves 5 to 10 percent
- Review your policy every year — As your business changes, what you need changes too. Do not pay for coverage you no longer use
What Do You Do When You Need to File a Claim?
- Write everything down right away — Take photos of the damage, write down what happened, and get contact information from anyone who saw it
- Tell your insurer fast — Most policies say you must report problems within a set time (usually 30 to 60 days)
- Do not say it was your fault — Stick to the facts about what happened, but do not say who is to blame. Let the insurance company decide that
- Talk to the client — Be professional and kind. Let them know you have insurance and are taking care of it
- Save everything — Keep all messages, receipts, and papers that have to do with the claim
Protect Your Business, Build Trust
Insurance is not just a cost. It is a way to protect your business and your good name. The right coverage keeps your money safe, makes clients feel confident, and opens the door to office contracts and property manager jobs that need proof of insurance.
Start with general liability insurance at the very least. Add workers' compensation when you hire people, and get bonded to stand out. As your business grows, look into a Business Owner's Policy and umbrella coverage for full protection. For more on building a strong business from the start, read our How to Start a Cleaning Business guide.