There are many risks involved in a Commercial cleaning Australia business, such as damaged equipment, incomplete work, accusations of theft, or worse, a client slipping and getting injured because of wet floors.
Insurance for cleaning companies and janitorial bonds are necessary as a risk management strategy to avoid the risk of financial damages in case a business is issued.
Most cleaning companies provide insurance for their employees or cleaners. Below are the most common policies they have in place to keep their employees safe and clients satisfied with their work.
General Liability Insurance
Cleaning companies usually have a general liability insurance policy to help protect their staff and clients at the same time. It also protects the company from suffering financially in case of unexpected events and accidents.
As a cleaning service company, a lot of work takes place at customer’s offices and worksites. It means that general liability insurance coverage is a necessity for cleaning businesses.
Employees are always careful, but there is always the possibility of accidentally injuring someone or their property. It could result in a lawsuit.
In such a case, general liability insurance will cover all the legal fees and settlements. It also protects cleaning companies from claims of slander, non-physical damage, and other similar claims.
General Liability Insurance for cleaning companies includes premises liability, which helps to protect employees and clients from paying medical bills when injured while on a business’s premises.
There is also product liability in case the products that cleaners use to cause harm to their clients. If any of the products used during the cleaning is hazardous or causes an allergic reaction to their customers, this type of Insurance for cleaning companies covers the injuries and damages caused.
Lastly, it includes completed operations coverage, which means that a customer can take legal action against a cleaning company for any damage to their property. It also covers litigation expenses and pays for injuries and damages.
Janitorial Bonds
Many cleaning companies have janitorial bonds to protect their customers from property theft by any of their employees. If one of their cleaners steals money or an item while cleaning, this type of policy covers the losses. It only covers theft, but not property damage.
Cleaning companies use this policy to reimburse a client who accuses their employees of theft, even if they are innocent.
Having this type of policy assures customers that the bond will comprehensively cover the losses if any property goes missing during the cleaning process.
Bonding Insurance for cleaning companies is essential for different reasons. In many places, you can’t get a business license without a janitorial bond.
It is for this reason that bonds are mandatory for a cleaning business. It will ensure that the client is reimbursed, and eliminates the need to go to court.
It also shows that the cleaning company is a credible one, which could set them apart from its competitors. Clients are protected when they hire these cleaning services because they have the necessary resources to handle any unfortunate situation.
Workers’ Compensation Insurance
Workers’ Compensation Insurance offers medical and financial benefits to employees if they fall ill or get injured when working. In the case of work-related deaths, it also provides burial and funeral benefits to the dependents.
Workers’ compensation is usually referred to as a no-fault policy and includes coverage of employee injury. It also offers protection for various illnesses and injuries based on state regulations.
When employees are recovering, the policy will pay for their rehabilitation, lost wages, and medical expenses. The benefits will depend on the severity of the injury and the recovery period.
Employees accept workers’ compensation benefits, which means they agree not to sue the company in case of injury. Cleaning companies recognize the importance of Workers’ Compensation Insurance. They can avoid penalties, fines, and criminal charges.
Sydney commercial cleaning services are a physically taxing industry, so workplace injuries are common. However, there are specific exclusions from Workers’ Comp, such as self-inflicted injuries that are intentional, violation of company policy, alcohol or substance abuse-related injuries, injuries sustained while away from work, injuries from recreational activities, and fights initiated by the employee.
Business Auto Insurance
Commercial auto insurance caters to property damage, medical expenses, and legal bills if a cleaning business’ vehicle is involved in an accident. It protects the car that their employees depend on when travelling to clients.
If a cleaner is involved in an accident, it leads to a lot more than just missing work. A lawsuit, caused by an auto accident, can also result in a settlement or legal bills, especially if the other party is injured.
Commercial auto insurance also pays for repairs due to weather damage, vandalism, and vehicle theft. The policy matches the needs of the business.
Commercial auto insurance only covers business-owned vehicles. There are some cases where employees drive their business cars for errands. Personal auto policies, in most cases, tend to exclude coverage in case of an accident while on a business errand.
Non-owner insurance offers liability coverage if employees get into an accident when driving their vehicle for the company’s business. It also covers rented and leased vehicles.
Business Owners Policy
Cleaning companies can protect their cleaning equipment, by use of a business owner’s policy, from theft and damage. This policy covers stolen or lost business equipment and damaged cleaning equipment. It also covers lawsuits related to advertising injuries, copyright infringement, and libel.
Many companies have tailored their business owners’ policies to match their specific needs. It means that their employees have protection against liability in case of the loss of any cleaning equipment.
General liability is also part of a business owner’s policy. It helps to pay for third-party injuries and property damages such as legal costs and medical bills.
Also, the closure of any business can be devastating for employers and employees. In case of closure or layoffs, this policy will protect the business from a financial hit by paying for lost payroll, rent, revenue, and other operating expenses.
For example, in the case of a leaky roof, business owners’ insurance will pay for day-to-day expenses until the business recovers, without them having to interrupt business.
Insurance for a cleaning company is a necessity for any cleaning business, both for employers and employees. They have effective policies in place in case something goes wrong.
A good cleaning company always tries to be proud of its work and remain credible. These policies should help you choose which company is the best one to hire.
