Who Needs Janitorial Insurance in Ontario?
If you own a janitorial or cleaning service, or work as an independent cleaning contractor, then you are likely familiar with some of the risks that are present in your line of work. For instance, if you're mopping a floor and a 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.
It's very important 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 be left scrambling trying to figure out how to pay up.
Avoid this significant stress by investing in janitorial insurance so you can breathe easy knowing you're covered in case of an emergency. 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 largely 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 insurance needs than a janitorial service that works at a manufacturing company. While the experts at Morison Insurance can help you establish what kind of coverage you need, it helps to have a basic understanding of the coverages available for your unique janitorial insurance policy. Below is a range of coverages commonly purchased by janitorial professionals.
General Liability Coverage for Janitorial Services
A 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, as a consequence of something to do with your work day. A very common concern for cleaning professionals is that an individual may slip and fall on a wet floor. This opens you up not only to a potential lawsuit, where you could wind up paying for significant legal fees, but you may also have to pay for any damages and medical bills. Liability insurance protects you from paying for these expenses out-of-pocket-which could be financially crippling for both large and small cleaning businesses.
Liability insurance also protects you from being liable for property damage and subsequent remuneration. For example, say a new employee accidentally mixes two cleaning agents that wind up damaging your client's tiled floor. You would be responsible for the damage, and for the cost of repairing said damage. This would also create financial stress, possibly putting your company in the red.
Building and Structure Coverage for Janitorial Services
This type of insurance is a kind 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 specifically 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, it's important 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. Not only will you be responsible for replacing the set of keys you lost, but also 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 be insured in case you lose your keys.
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 key 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 he or she will steal from you or that your business could be the victim of employee theft. However, the unfortunate reality is that it's quite 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
Your tools, supplies and cleaning equipment are quintessential to running your custodial business. In the event these tools and inventory are stolen or lost, you could find yourself going over budget to get more equipment. In particular, cleaning tools like industrial ride-on floor scrubbers can be exceptionally costly to replace. 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 agent 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.
Workers' Compensation Insurance for Janitorial Services
It's very important to have worker's compensation insurance to protect your employees from getting injured on the job. However, what many business owners don't realize is that the government will actually provide for worker's compensation insurance—so you can have peace of mind knowing your employees are going to 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 such as disability insurance and life insurance. Speak with your commercial insurance broker to get the right advice about your janitorial insurance needs.
Frequently Asked Questions
Why Do Janitors Need Insurance?
You may think that as a janitorial service you don't necessarily need insurance—especially if you work as a cleaner for clients that you've known for years. However, this is not the case. Accidents and disasters do happen, so it's always best to protect your interests, your employees and your clients. 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 insurance, you could find yourself facing serious financial repercussions for even the smallest incident. A slip and fall may not seem like a big deal, but if the person who falls is a senior, he or she could be seriously injured. It's simply not worth the risk not to have insurance. Rather than worrying about an accident happening, you should be able to complete your business as usual, focusing on your work and your clients' satisfaction.
What Impacts Janitorial Insurance Rates?
Your rates are established based on a range of factors. Your dedicated 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, as some insurance companies charge per employee.
- The years of experience you have. It's important to note that the less experience you have, the higher your premiums are likely to be. With less than three years' experience, it can be difficult to find insurance coverage to begin with.
- Whether you were insured in the past. If you have been operating your janitorial business without insurance, you may not be able to find an insurer.
How are My Janitorial Tools Covered?
There are many ways your janitor's insurance policy can protect your tools from loss, theft and damage. That being said, there is no one-size-fits-all insurance policy. Different coverages protect against different risks. For instance, employee theft coverage will protect you if your tools are stolen by an employee, and commercial property insurance will protect you if your tools are stolen on your premises.
What Information Do I Need to Purchase Janitor Insurance?
When applying for janitorial insurance, it's wise to be as prepared as possible. This means getting your proverbial ducks in a row. That preparation includes knowing what questions your insurance broker may ask while establishing what coverage is best 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?
- When did you obtain your trade license, certification and accreditation?
- 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 mould 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, most insurance companies recommend between $2 million and $5 million Commercial General Liability coverage.
Do Home-Based Businesses Need Janitorial Insurance?
Yes. Even if you operate your business from home, you still need janitorial insurance to protect claims that could happen while you are at work—as you primarily work in either other residences or in commercial/industrial buildings.
Why Choose Morison Insurance to Get Janitorial Insurance?
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.
