Entrepreneurship requires serious elbow grease—particularly for those running cleaning, maintenance and janitorial service businesses. The day-to-day operations keep you busy, so it can be daunting to also keep up with the necessary insurance to keep your small business protected.
While it’s not universally mandated to purchase insurance for your cleaning business, it is typically mandated for non-residential contracts — so, in Canada, overlooking the potential risks can result in costly claims and jeopardize your reputation and business.
This guide will break down the key types of insurance coverage every cleaning business should consider and explain why they matter so you can choose a policy that keeps your business protected and shining.
Why get insurance for a cleaning and maintenance business?
With the employment prospects for those in the cleaning industry looking bright across Canada, owning and operating a cleaning business can be a promising entrepreneurial path. And, depending on your area of expertise, a cleaning or maintenance business has relatively low startup costs. However, it’s important to consider the potential risks and learn how to protect yourself and your business from expensive accidents.
Common incidents in the cleaning industry include mistakenly damaging another’s property or causing bodily injuries while performing your work. A single injury claim could incur medical, legal and other administrative expenses, costing thousands in fees, and taking years to settle. Most small businesses cannot sweep messes like that under the rug, which is why the right insurance can make the difference between a small hiccup and a major financial setback—or even business closure.
Choosing the right insurance for a cleaning and maintenance business
Not every cleaning or maintenance business has the same level of risk. Your location and service, including whether you work on-site for customers, will determine the right insurance for your business.
You should also consider:
- Contract requirements: Many clients, especially commercial property managers and government agencies, require proof of insurance before signing a contract. Having a policy already in place positions you as a trustworthy and professional business.
- Credibility and peace of mind: Being insured not only protects your business legally and financially, but also demonstrates professionalism to potential clients—helping you stand out from competitors who may not carry coverage. The right coverage may enable you to take on higher-value contracts or more complex jobs, knowing you’re protected from unexpected risks and covered to meet contractual obligations.
What insurance coverages should a cleaning or maintenance business consider?
When operating a cleaning and maintenance business in Canada, consider the following foundational types of insurance:
Commercial general liability insurance
Commercial general liability (CGL) coverage protects your cleaning business from claims of property damage or bodily injury caused to third parties while you are performing your services. This is one of the most critical policies for cleaners, especially when working inside clients’ homes, offices, or commercial spaces like schools and hospitals.
CGL policies can also include products and completed operations liability, which can be an important additional coverage for cleaning and maintenance businesses. This protects your business if a client claims injury or property damage after your work is completed, like if a customer slips on a newly cleaned floor.
Real-world scenario: A client is seeking compensation for repairs after a cleaning company performed services in their home, alleging that their hardwood floors were damaged from the cleaning products used. CGL coverage could help pay for the legal representation, investigative services, and the cost of repairing the flooring.
Contents insurance
Professional tools and equipment are a key component to running a successful cleaning business, so you’ll want to protect those assets. Contents insurance protects business equipment such as tools, cleaning supplies, and other essential business items against theft, damage, or other unforeseen circumstances. This policy helps cover the repair or replacement of your physical equipment impacted by such incidents.
Real-world scenario: A break-in at a company’s storage unit results in the $8,000 theft of several commercial vacuums, steamers, and cleaning supplies. Business contents coverage could help cover the replacement of stolen or damaged items, so the business can resume services quickly and minimize downtime.
Cyber liability insurance
Many cleaning businesses use online booking platforms, digital invoicing, or client management software, all of which can be vulnerable to cyberattacks. Cyber liability coverage protects against digital risks, like hacking, ransomware, identity theft, or data breaches.
Real-world scenario: A home cleaning business uses a third-party CRM to manage client bookings and store client information. The platform has a data breach, exposing sensitive customer data, and the hacker demands a ransom to prevent further data exposure. Cyber liability insurance could help by covering the costs of the IT forensics, legal fees, regulatory fines and even reimbursement of the ransom, if required.
Other optional coverages to consider
Depending on your business’s needs, you may want to add additional coverage, such as:
- Commercial auto insurance: Personal auto insurance may not be sufficient for entrepreneurs who use their personal vehicle for business-related travel, like transporting equipment and staff to a job site. This insurance can cover vehicle damage, liability, and even rental reimbursement.
- Commercial crime insurance: Cleaning businesses have unique legal risks, with multiple employees entering client homes or offices and being exposed to their valuables. Fidelity coverage protects clients—and the business itself—against claims of employee theft or fraud.
What about bonding?
Specific to cleaning businesses, cleaning or janitorial bonding offers added protection and assurance for clients. Bonding covers against losses specifically related to theft or damage caused by employees.
It’s important to note that, while bonding is a guarantee to the client, the business must repay the claim amount. So, while it gives your clients peace of mind, it will not cover the claims for you, as a business owner.
Being both insured and bonded can be a requirement for landing commercial cleaning contracts, in addition to your liability insurance.
How much does insurance cost for a cleaning or maintenance business in Canada?
There is no one-size-fits-all when it comes to insurance for your cleaning business. While CGL coverage is a great, foundational insurance, the cost will depend on the coverage required for your business, as well as many individual factors, like:
- The location of your business
- The number of employees
- Your revenue
- Your industry experience
- Your history of past claims
Protect your cleaning business with Ownr insurance
Achieve peace of mind from day one with Ownr Insurance. Ownr Insurance offers commercial general liability and contents insurance packages for eligible businesses. Learn more about protecting your business with Ownr insurance. To learn more about choosing the best coverage for your needs, book a call with an expert to receive a quote.
This article offers general information only and is not intended as legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. While the information presented is believed to be factual and current, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author(s) as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or its affiliates.
This article offers general information only, is current as of the date of publication, and is not intended as legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. While the information presented is believed to be factual and current, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author(s) as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by RBC Ventures Inc. or its affiliates.