I have a small cleaning service, how much per year should I expect to pay for minimal liability insurance?

Question

Also, how much approximately to be bonded? I just want to get a roundabout idea?

Also, is it necessary in all cases to carry business liability insurance for small businesses.

Answer 1

I know you are trying to minimize expenses to your small firm, but you need to seriously ask yourself if carrying the minimum necessary is the right thing to do.

The real question you have to ask yourself is what do you have of value in your personal possessions right now....that you don't mind losing when the lawyers come to pick apart your small business.

If you value all that you own...then you should consider how much coverage you want to buy.

You have to remember that insurance coverage is not about how little in premiums you want to pay....or how minimal of a payout to claimants you want it to pay......no.....insurance is to protect what YOU OWN and you need coverage in order to prevent the loss of those things you cherish (like your home and your car) to what can sometimes amount to needless, unnecessary and frivolous lawsuits.

Don't pick a small number and go with it because of the cheap premiums.

Because, even if you have insurance.....that policy will come with a liability payout limit.....let's say...$50,000.

If you get sued (and that's going to be a strong likelihood) and you lose and the jury awards $100,000.....your policy won't pay out the entire $100,000. It will only pay out $50k...but that doesn't satisfy the claim.....so they'll ask YOU to pay the rest of it....which means, depending on how the business is set up....you could lose your personal assets in such an event.

Bottom line....this is not a time to be cheap...buy plenty of coverage to protect yourself.

Answer 2

OK, search the "bonding" questions on this thread, because it doesn't mean what you think it means, and it's pointless for a cleaning service unless you have a contract which specifically requires it - which is usually a GOVERNMENT contract.

The insurance will run you about $1,000 to $1500 a year, assuming you have gross sales under $75,000 and only one or two people cleaning. You're going to have to get an exact quote from a local agent.

Answer 3

Most brokers will write a minimum of a million of general liability. Should be somewhere from $500 to $1500 depending on the type of operations and the number of employees.

Answer 4

you would need to go to an agency and sit down and talk to them ,depend on how many workers and I would not work with out insurance and being bonded , if you have workers I would get a background check on each,my daughter and I use to clean residential as well as offices buildings ,we did a lot of banks ,late evening and good money lots of responsibility, you will do good with the right help.Best of luck to you and happy new years

Answer 5

If you're doing it as self employment, then check out a personal umbrella policy.

Regardless of what it cost, you can't afford not to have some kind of policy. You'll be cleaned out the first time some one sues you for breaking a family heirloom, whether you actually damaged it or not.

Answer 6

at the same time as cleansing a paper towel is left on the range and the range is accidently flipped on through bumping into it. Paper towel catches fireplace domicile burns down. incorrect chemical substances used on flooring and eats the end off. you'd be blamed for something that you probably did not do as well

Answer 7

yes you must have insurance