If you’re cutting corners on your janitorial general liability insurance, you could be looking at some unpleasant surprises.
For many of us, insurance can feel somewhat confusing. We need it, sure, but there are so many different kinds of insurance, coverage amounts, and other qualifiers that it’s easy to get overwhelmed. And when we don’t use it, paying for insurance can also feel like spending money without getting much in return. Tempting as it may be to opt for the minimum, your janitorial general liability insurance is not the place to skimp.
But what, exactly, is good janitorial general liability insurance and how much coverage do you need? Let’s see if we can figure that out.
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Different types of business insurance
Before we get specifically into janitorial general liability insurance, let’s take a quick look at some of the different insurance options available (or required) for your commercial cleaning business.
- Commercial auto insurance: This is similar to your personal auto insurance, only it covers company or work vehicles.
- Workers’ compensation insurance: Your state may require you to have this coverage. Workers’ compensation covers medical expenses and lost wages for employees injured on the job.
- Bonding insurance: This covers your clients’ property in the case of theft by your employees.
- Commercial property insurance: This coverage is for your equipment and supplies.
- Commercial umbrella insurance: This policy will boost the coverage of the policies you already have.
You may also see different bundles for insurance coverage. One common one is a business owner’s policy (BOP) which combines your commercial property insurance and your janitorial general liability insurance.
What to look for in your janitorial general liability insurance coverage
Along with the policies above, there is also your general liability coverage. This policy covers most third-party issues. You can think of it like your personal auto insurance. If you have an accident, your liability coverage will take care of repairs to the other person’s vehicle. So once you pay your deductible, the insurance company takes care of the rest. To a point.
This is where things get a little tricky. Insurance, whether auto insurance or janitorial general liability insurance, has limits. For example, if you have liability coverage of $100,000 and you hit and total a brand new Lamborghini, you’re on the hook to pay anything over $100,000 in repair costs.
Back to business insurance, however, what does this mean? Your janitorial general liability insurance covers injuries and damages for people outside your business. This might range from medical bills to attorney fees to a broken window.
It’s not hard to understand how this could come up. You’re mopping the floor in an office, and someone walks by, slips, and breaks their ankle. Someone on your team is mixing cleaning products, and they spill, damaging the floor. General liability insurance even covers personal injury, such as libel and slander.
But what makes one insurance coverage better than another, especially if you aren’t shopping based on price alone?
Here are a few things to look for or ask about to help determine if you’re going with a janitorial general liability insurance provider who is right for you.
- They should have experience working with small businesses.
- You need to know exactly what is included and if there are exclusions that might put your business at risk.
- Look at the per occurrence limit and the aggregate limit. This is how much the insurance company will cover for each incident and how much they will cover in total in one year.
- Look at company ratings on A.M. Best.
- Do they offer the coverages you need?
- Are they comfortable to work with? You should be able to ask as many questions as you want and get solid answers each time.
When the time comes, and you need insurance coverage, you don’t want to wonder whether or not your insurance company has the experience and fortitude to work for you. You want to feel comfortable that they’re on your side and will take care of your business.
Even with a good company, you still have choices to make regarding your janitorial general liability insurance coverage. You may pay a little more for higher limits, but that’s money that could be very well spent. On the other hand, you don’t want to pay out of pocket for a hospital stay or lawyer fees!
The good news here is that, relatively speaking, liability coverage isn’t incredibly expensive. The average is around $50 per month. Of course, that depends on factors like where you work, how many employees you have, and so on. It’s entirely possible you could pay less.
Harness the value of Janitorial Manager to streamline your cleaning operation like never before. Learn more today with a free discovery call and find out how to make your cleaning operation more efficient and cost effective!