Carpet Cleaning Business Insurance

While generally not required to obtain a business license, there are several reasons for upholstery and carpet cleaning businesses to carry a janitorial bond:

• Customer protection: Should an employee steal from a client, the customer would be reimbursed by the bond up to the policy limit.
• Client requirement: Some customers, especially government entities, will require your business to have a bond before your employees are allowed on their premises.
• Attracts clientele: Most prospective customers prefer to work with a company that's bonded and insured, because it shows them your carpet cleaning services are reliable and guarantees reimbursement in the event of theft.

Sometimes this kind of bond is referred to as a surety bond or fidelity bond. It's also important to note that unlike an insurance policy, bonds must be paid back in full to the bond carrier.

Yes. With the right property coverage you can insure your cleaning equipment. Some insurance solutions that cover your tools include:

• Commercial property insurance: This policy protects your cleaning company's building and its contents against financial losses due to fires, storms, and burglaries. This is very important coverage to have since homeowner's insurance won't cover your business property.
• Inland marine insurance: This coverage is ideal for your cleaning products and equipment that you bring to clients or store outside of your main business office. Especially tools and equipment coverage, which safeguards any equipment that's valued under $10k and is less than five years old (like carpet cleaners and steamers).
• Business personal property (BPP) insurance: BPP protects your cleaning equipment while it's stored at a designated location (outside of the building or office). However, you'll still need inland marine insurance while it's in transit or at a jobsite. This coverage can also be added to your general liability policy as an endorsement.

To fully protect your carpet and rug cleaning business, you may need additional coverage outside of a general liability insurance policy and workers' compensation insurance. Other types of insurance often bought by carpet and upholstery cleaning businesses include:

• Hired and non-owned auto (HNOA) insurance: Because personal auto insurance policies are unlikely to cover claims involving personal, rented, or leased vehicles used for business purposes (such as taking supplies to a jobsite or running a work errand), you'll likely need HNOA coverage if you or your employees regularly drive personal vehicles for work.
• Errors and omissions (E&O) insurance: E&O safeguards your business if a customer sues you due to a mistake or oversight. For example, if you recommend a rug cleaning solution that ultimately damages their rug, you could be sued for the replacement of the carpet and your insurance would handle the financial burden. This policy is sometimes called professional liability insurance.
• Cyber insurance: Also known as cyber liability insurance, this policy helps cover legal expenses, credit monitoring services, and other remediation costs if a data breach or cyber attack affects your carpet cleaning business or clients.
• Business interruption insurance: If your cleaning company is forced to temporarily close due to a fire or other covered property claim, business interruption coverage can pay for lost revenue, day-to-day expenses, and rent or relocation costs.

It's easy to find cheap carpet cleaning insurance that matches your unique risks and budget. One way is to review coverage options from different insurance providers, and with Insureon's easy online application you're able to get free quotes from several insurance companies.

There are a few other ways small business owners can save:

• Bundle coverages together: The most popular option is a business owner's policy (BOP), which pairs general liability with property insurance to save money.
• Customize your policies: You can choose lower coverage limits, a higher deductible, or certain exclusions to save on your premium.
• Prioritize safety: Fewer accidents mean fewer liability claims, which helps lower your insurance costs.

Learn more about how to find affordable insurance for small businesses.