Business insurance is intended to safeguard the financial assets of a business owner and is a vital investment for a carpet cleaning company.
This article will discuss the primary insurance coverage for carpet cleaning enterprises, general liability insurance, as well as additional policies that are appropriate for this industry.
Carpet Cleaning Companies Need General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
COMMON SITUATIONS THAT A CARPET CLEANING COMPANY’S GENERAL LIABILITY INSURANCE MAY COVER
Example 1: Your carpet shampooer breaks down, spraying water and cleaning solution all over a client’s home recording studio. His gear has been damaged. Your general liability insurance would very certainly cover the cost of replacing his recording equipment.
Example 2: While hurrying to complete a cleaning task, one of your staff collides with a customer, pushing her backward and causing her to smash her head on the corner of a table. She needs medical attention for her injuries and requests that you pay for it. Her therapy would most likely be covered by your general liability insurance.
Example 3: A recent customer calls and accuses one of your staff of destroying several of her pricey Persian carpets. She initiates a lawsuit against your company for monetary damages. A general liability insurance coverage would cover the expense of your legal defence and, if necessary, a settlement.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
Carpet cleaning companies in America typically pay between $500 and $1,500 per year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Types of Coverage Required by Carpet Cleaning Companies
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that every carpet cleaning services should have include:
Insurance for Professional Liability
Professional liability insurance is tailored to your unique company requirements. As a professional carpet cleaner, you run the risk of a customer claiming you committed errors that resulted in financial or other harm. If he or she files a lawsuit against your company, your professional liability insurance will pay for your legal defence.
Insurance for Commercial Vehicles
Commercial auto insurance should cover your carpet cleaning trucks. You and your workers are covered when driving with a business vehicle coverage. If you or an employee causes an accident, the coverage will cover vehicle damage and medical treatment for anyone wounded.
Coverage Options for Some Carpet Cleaning Companies
In addition to the policies listed above, your carpet cleaning firm may need other forms of coverage based on particular elements of your operations. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Insurance for Workers’ Compensation
If you have employees, your state most likely requires you to obtain workers’ compensation insurance. If an employee is injured while doing job-related responsibilities, the workers’ compensation coverage you put in place will cover the cost of his or her medical care. It will also reimburse part of the employee’s lost salary while he or she is healing.
Insurance for Commercial Property
All of the equipment and materials you’ve purchased would be expensive to replace if they were destroyed in a fire. However, if you have commercial property insurance, your insurer may be able to assist you in paying for repairs or replacements. After filing a claim, you should be able to get financial help as long as the harm was caused by a covered incident.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.