Janitorial Insurance Ontario

What Is Janitorial Insurance or Cleaning Business Insurance? 

Janitorial insurance, or cleaning business insurance is a form of business insurance that protects sanitation and custodian companies from many of the financial risks inherent in their line of work. While such work might seem to be very low risk on the surface, any business owner will let you know that there are plenty of ways their company can lose thousands of dollars due to an unforeseen situation. 

Risks that these companies run may vary based on what type of work they do but can include incidents such as slip and fall accidents, loss of or damage to keys or equipment, damage to their own or a clients building, all risks faced by any company that travels, and many others. This type of insurance for cleaning businesses allows these custodian services to continue to thrive, even if they are blindsided by an unexpected accident.

Who Needs Janitorial Insurance Coverage In Ontario?

If you own a janitorial or cleaning service or work as an independent cleaning contractor, then you should have janitorial insurance coverage. You are likely familiar with some of the risks in your line of work. For instance, if you're mopping a floor and third-party trips and falls, you could be liable for a lawsuit and possibly have to cover medical expenses. Likewise, if you use a cleaning agent on a surface that has a bad reaction, thus causing property damage, you could be held responsible. A single accident like this can cause major damage to any company, especially a smaller one just starting out. 

It's essential to protect yourself, your company and any staff you might employ. Otherwise, you could be forced to pay out of pocket for costs that you weren't expecting. In this event, your cleaning business could fall into the red, and you may need help figuring out how to pay. 

Avoid this significant stress by investing in janitorial insurance so you can breathe easy knowing you're covered in case of an emergency. Insurance for cleaning companies gives you the coverage you need to protect yourself from this possible catastrophe. To establish the best coverage for your cleaning or janitorial company, book an appointment to speak with one of our expert insurance brokers today.

What Is Covered With Janitorial Insurance?

The level of coverage you need as a cleaner or janitor depends mainly on how big your company is, how many individuals you employ, and the nature of your work. For instance, a cleaning company that primarily works in office buildings may have different janitorial insurance needs than a sanitation service that works at a manufacturing company. Similarly, a freelance cleaner or company with only a few employees will have different needs than a large corporatized company with multiple franchises. While the experts at Morison Insurance can help you establish what kind of coverage you need, it helps to understand the options available for your unique janitorial insurance policy. Below is a range of coverages commonly purchased by janitorial professionals.

Cleaning and Janitorial General Liability Insurance

A commercial general liability insurance policy protects your interests in two main areas: third-party bodily injury and property damage. Third-party bodily injury coverage protects you in case a third party is injured while you are at work because of something to do with your work day. A common concern for cleaning professionals is that an individual may slip and fall on a wet floor, causing injury. This opens you up not only to a potential lawsuit, where you could wind up paying significant legal fees, but you may also have to pay for any damages and medical bills. Liability insurance protects you from paying for these out-of-pocket expenses, which could be financially crippling for both large and small cleaning businesses.

Liability insurance also protects you from being held liable for property damage and subsequent remuneration. For example, say a new employee accidentally mixes two cleaning agents that, when combined, damage your client's tiled floor. You would be responsible for the damage these products caused and the repair cost. Paying these high legal fees would also create financial stress for you and could also put your company in the red.

Building and Structure Coverage for Janitorial Services

This subset of janitorial insurance is a type of commercial property insurance. It is designed to cover direct physical damage or loss to commercial property and its contents. Usually, building and structure coverage will define what property is covered and what is not. It typically protects against loss from fire and vandalism and may also include theft—dependent on the policy.

Building and structure coverage can protect your cleaning business if you operate out of a head office or have a warehouse where cleaning supplies, tools and equipment are stored. Should a fire break out in the building or any similar event occurs, it's crucial to have a commercial property policy to protect your property. Otherwise, you could wind up having to pay for repairs, damages and any replacements out-of-pocket.

Lost Key Coverage for Janitorial Services

Losing a set of keys to an office building, shop, or restaurant can create a real headache. You will be responsible for replacing the set of keys you lost the lock and all subsequent copies of the key. After all, a lost set of keys can be a real security risk to the property and/or business owner. These costs can set you back significantly, so it's best to include it with your janitorial insurance policy since you could lose your keys at anytime.

It's important to note that, should you or one of your employees accidentally leave a building unlocked and it's robbed in the middle of the night—say valuable merchandise or a till float is stolen—then lost essential coverage would not include the cost of replacing the lost cash and inventory.

Disability Insurance for Janitorial Services

Designed to help you meet your income needs while you recover from or adjust to an injury or illness that prevents you from working, disability insurance is incredibly helpful for custodians and cleaning professionals. While completing your work day, it's possible you might slip on a wet surface, pull a back muscle, or be burned by a cleaning agent. While you heal from your injury, you don't want to be left struggling to make ends meet. Even if you have a savings account, why not keep it for a rainy day? Instead, your best option is to invest in disability insurance. Usually, you receive a monthly benefit with disability insurance, so you can focus on getting better without being distracted by financial concerns.

Employee Theft Coverage for Janitorial Services

Naturally, when you employ your staff, the last thing you expect is that they will steal from you or that your business could be the victim of employee theft. A large part of the reason that you put candidates through interviews is to get a better idea of who you can trust, especially when you're not there. However, the unfortunate reality is that it's common for businesses to be victimized by fraud or employee theft. After all, it only takes one bad apple to set your business back. It's best practice to prepare for the worst-case scenario, and with any luck, all your employees will be honest and hardworking people, so you won't have to worry about filing an employee theft insurance claim.

Tools and Equipment Insurance for Janitorial Services

Tools, supplies, and cleaning equipment are quintessential to your custodial business. In the event these tools and inventory are stolen or lost, you could find yourself going over budget to replace that equipment. In particular, cleaning tools like industrial ride-on floor scrubbers can be exceptionally costly to replace, usually costing thousands of dollars. With the right janitor insurance policy, you can be protected against a variety of risks that may come your way.

Commercial Auto Insurance for Janitorial Services

Do you transport equipment, cleaning supplies and employees in a commercial vehicle? Even if you're a solo operator and you use your personal vehicle for commercial purposes, it's important to check with your insurance broker to see if you need commercial auto insurance. Using a personal vehicle for work-related reasons may mean you're not covered under your personal auto insurance for risks such as collision, theft and property damage, or bodily injury caused to a third party while you are driving for business purposes. Having Commercial Auto Insurance as part of your Janitorial Insurance policy will provide you with the coverage you need.

Workers' Compensation Insurance for Janitorial Services

It's imperative to have worker's compensation insurance as part of your janitorial insurance policy to protect your employees from getting injured on the job. However, many business owners don't realize that the government will provide worker's compensation insurance—so you can have peace of mind knowing your employees will be looked after.

Other Protection for Your Janitorial Business

Depending on your janitorial operation, you may also be interested in protecting your janitorial business with a few add-on policies. Speak with your Morison insurance broker for advice about your janitorial insurance needs.

Why Do Cleaning Services Need Janitorial Insurance?

You may think that as a janitorial service, you don't necessarily need insurance—especially if you work as a cleaner for clients you've known for years. However, this is not the case. Accidents and disasters happen, so it's always best to protect your interests, employees, clients and yourself. Being properly insured also illustrates professionalism and garners trust in your company because you will be able to pay for any damages or bodily injury that could happen while you're working.

Without janitorial insurance, you could face severe financial repercussions for even the smallest incident.. Since a single accident could end up with you paying thousands of dollars in legal fees, it's simply not worth the risk of not having janitorial insurance. Rather than worrying about an accident happening, you will be able to complete your business as usual, focusing on your work and your client's satisfaction.

How Much Does Janitorial Insurance Cost? 

Insurance for cleaning businesses does not have a set cost. Due to each custodian company having different needs and different risks, no two quotes will ever be the same. Our dedicated and insightful brokers at Morison Insurance would be happy to get you a janitorial insurance quote for your cleaning business. Having the right insurance for you will help to ensure that you're properly protected and can focus on satisfying your clients.

What Impacts Janitorial Insurance Rates?

Your rates are established based on a range of factors. Your dedicated Morison Insurance broker will be able to walk you through what these are in greater detail, but a basic outline includes the following:

• The projected revenue you expect to make in the upcoming year.
• Your past claims history.
• The size of your business.
• The number of staff you employ.
• The years of experience you have. The less experience you have, the higher your premiums are likely to be. 
• Whether you were insured in the past.

Are My Janitorial Tools Covered?

Your janitorial insurance policy can protect your tools from loss, theft and damage in many ways. That said, insurance for cleaning businesses is nuanced, so there is no one-size-fits-all insurance policy. Different coverages protect against various risks

What Information Do I Need to Purchase Janitor Insurance?

When applying for janitorial insurance, being as prepared as possible is wise. This means getting your proverbial ducks in a row. That preparation includes knowing what questions your insurance broker may ask while establishing the best coverage for you—based on your company's unique needs. For instance, some of these questions may include:

• Do you subcontract work? If so, what percent of your overall operations are subcontracted out?
• Do you have contracts in place with your sub-contractors?
• Do you request proof of insurance from your sub-contractors?
• Do you have insurance now?
• Have you been cancelled/declined/non-renewed in the past five years?
• Have you had any claims in the past five years?
• What are your gross annual revenues?
• Do you do any work in industrial, manufacturing or airport sites?
• Is this your full-time or part-time job?
• Do you have safety procedures in place to prevent accidents?
• Do you perform interior work only?
• Do you offer any repair work?
• Do you offer any remediation work, such as asbestos or mold removal?
• Do you have written contracts in place with your commercial customers outlining your responsibilities?

How Much Coverage is Recommended for Janitorial Companies?

While how much coverage you will need largely depends on the size of your business operations, usually, we recommend between $2 million and $5 million Commercial General Liability coverage. Your Morison Insurance broker will give you a recommendation based on your needs.

Do Home-Based Businesses Need Janitorial Insurance?

Yes. Even if you operate your business from home, you still need janitorial insurance to protect against claims that could happen while you work—as you primarily work in other residences or commercial/industrial buildings.

Where can I Get Janitorial Insurance?

You can get a janitorial insurance quote from the brokers at Morison Insurance. We are proud to say that we are a family-owned and operated business, and we treat all our clients with the same family-oriented mindset. Building lasting relationships with all our clients is our top priority, so we go above and beyond daily to ensure our clients receive the best insurance coverage possible.

To get in touch with our brokers and learn more about janitorial insurance today, we invite you to give our team a call at 1-800-463-8074. You can also inquire about a quote online.

This content is written by our Morison Insurance team. It is provided for general information only. Insurance needs differ from person to person, and this article is therefore not a substitute for professional advice about your individual insurance needs which can be obtained by speaking to one of our brokers.