Cleaning Insurance for Self-Employed Cleaners: What You Need

Cleaning insurance for self-employed cleaners usually starts with general liability (insurance that pays if your work injures someone or damages their property). From there, most solo cleaners add coverage for their tools, a policy for the car they drive to jobs, and sometimes a bond or workers' compensation. If you work alone, most states don't legally require general liability, tools coverage or a bond, though your car still needs the auto insurance your state requires. Clients, property managers and contracts often do, though, and they'll want proof before they hire you.

Do self-employed cleaners legally need insurance?

Usually not, as long as you have no employees. Next Insurance notes that most states don't require general liability insurance to run a cleaning business. Licenses, employees and vehicles fall under separate rules, so check what applies in your state and city.

Hiring changes things. The U.S. Small Business Administration says businesses with employees must carry certain coverage, including workers' compensation, and that rules and taxes vary by state.

A few state examples from insurer guides show how much they vary. In Florida, Insurance Canopy reports that cleaning businesses with four or more employees must carry workers' compensation. In Texas, the same guide says no law requires self-employed cleaners to carry cleaning insurance, though plenty of clients ask for proof of it. In New York, Insureon says workers' comp is required for cleaning businesses with employees, while sole proprietors may not need it for their cleaning business license.

"Not required by law" isn't the same as "not needed." Next Insurance points out that some places may want proof of insurance before they'll issue a cleaning business license. Landlords, realtors and property managers may ask for it before handing you contracts, too. In practice, plenty of solo cleaners buy coverage simply because a client asked.

What insurance self-employed cleaners usually carry

Most self-employed cleaners build their coverage from a short list of policies. The table below shows what each one generally does. Every insurer writes its own policy, though, so the wording in yours is what counts.

General liability: the core policy

The SBA describes general liability as protection against financial loss from bodily injury, property damage, medical expenses, libel, slander, defending lawsuits, and settlement bonds or judgments. For a cleaner, that might be a client slipping on a floor you just mopped, or you knocking over something valuable. Next Insurance calls it "the foundation of most residential cleaning insurance policies."

Read the exclusions closely. Many liability policies limit coverage for property in your care or for the exact item you were working on. Ask how the policy handles damage from cleaning products, like a stained countertop or a bleached rug. The guide to general liability insurance for a cleaning business covers this in more detail.

Tools and equipment

Insureon explains that inland marine insurance covers cleaning tools and equipment while they're in transit, stored off-site or in use at a jobsite. Standard property insurance, it adds, only covers items stored at your business. If your gear rides around in your car between jobs, ask about that gap.

Why your personal policies usually don't cover cleaning work

Many new cleaners assume their homeowners, renters or car insurance will step in. Usually it won't. Insureon states that homeowner's insurance and other personal policies won't cover incidents related to work.

Your home policy and your business gear

Running the business from home doesn't mean your home policy has your back. The Insurance Information Institute says a typical homeowners policy provides only $2,500 coverage for business equipment. And that limit applies only to your gear at home. It won't help if a client sues you over damage at their house.

The SBA notes that a home-based business rider (an add-on to your homeowners policy) can cover a small amount of business equipment and add some liability coverage for injuries to others. Ask whether a rider covers work you do in other people's homes, or whether you'll need a separate business policy.

Your car

Driving between jobs is a real risk in this work. Next Insurance says personal auto insurance often won't cover accidents on the way to or from a cleaning job, though the SBA notes a personal policy may be fine if business driving is only occasional. The Insurance Information Institute says that if you use your car for business, like carrying supplies or visiting customers, you should make sure your auto policy protects you. Call your auto insurer and tell them exactly how you use the car.

A company's or client's insurance

If you get jobs through an agency, app or cleaning company as an independent contractor, don't assume their policy covers you. Next Insurance says freelance and independent cleaners are "probably not covered" by the policies of the company or client they work for. Ask the company, in writing, what its insurance covers and what it expects you to carry yourself.

Workers' comp when you work alone

Workers' compensation pays medical bills and part of lost wages when a worker gets hurt on the job. Without employees, you can skip it in many states, as the New York example above shows. Whether you can buy it for yourself, and how, depends on your state and your insurer.

Cleaning is physical work. Lifting, bending, ladders, wet floors and chemicals all carry a risk of injury. NerdWallet notes that health insurance typically won't cover job-related illness or injury, so workers' comp can be worth a look even for a sole proprietor.

Commercial clients sometimes want proof of workers' comp, even from one-person businesses. If a contract requires it and your state lets you opt out, ask the client and an agent how you can meet the requirement.

Bonds: what they do and don't do for a solo cleaner

House cleaning clients often ask, "Are you bonded?" A bond isn't liability insurance. Insureon explains that fidelity bonds protect your clients from employee theft.

That focus on employees matters when you work alone. Before paying for a bond, ask the agent who it covers, whether it applies to you as the owner, and whether a court conviction is required before it pays out. Some clients just want to hear the word "bonded." Others write a specific bond into the contract.

A bond gets more useful once you plan to hire, since you can't watch every worker in every home. The guides to house cleaning insurance and janitorial insurance, bonds and costs go deeper on bonds for each type of work.

Contracts, certificates and proof of insurance

Commercial clients, property managers and some homeowners will ask for a certificate of insurance (COI), a one-page summary showing your insurer, policy dates and limits. Many insurers let you download one online after you buy. Insureon also notes that clients and government contracts could require insurance no matter how small your business is.

Before you sign a contract, watch for these terms:

• Required limits: The minimum coverage the client wants for each claim and in total.
• Additional insured: The client asks to be added to your policy so it's protected too. This usually takes an endorsement (a written change to the policy).
• Waiver of subrogation: Your insurer agrees not to go after the client to recover money it paid. This usually takes an endorsement as well.
• Hold harmless or indemnity clause: You agree to cover the client's losses tied to your work, which can go beyond what your policy covers.

If a contract asks for something your policy doesn't include, tell your agent before you sign. Policy changes usually take time, and some cost extra.

What affects the cost

Premiums depend on where you work, what kind of cleaning you do, the limits you choose, your deductible, your claims history and whether you have employees. Residential, commercial, carpet, window and pressure washing work may all be priced differently. The clearest way to compare is to get quotes for the same limits from more than one source.

You may also be able to deduct your premiums. Insurance Canopy says cleaning insurance is typically tax-deductible as a business expense. Check with a tax professional about how that applies to your return.

Two choices can swing your price a lot. Higher limits cost more, but bigger clients may require them. A higher deductible lowers your premium, but you'll pay more out of pocket if you file a claim.

Checklist: what to ask an agent before you buy

Bring these questions when you talk to a licensed insurance agent or broker:

• Does the general liability policy cover damage to the client property I'm cleaning, or only other property in the home?
• Are there exclusions for chemicals, mold, water damage or certain surfaces like stone and hardwood?
• Am I covered if I lose a client's keys or access codes?
• Does the policy cover my tools and supplies in my car, at a job and in storage?
• Does my personal auto policy cover driving between jobs, or do I need commercial auto?
• Can I buy workers' comp for myself in my state, and does it make sense for me?
• Does the bond cover me as the owner, or only employees? When does it pay?
• Can you add a client as an additional insured, and how fast can you issue a certificate?
• Does the policy cover the work I do now, such as move-out cleans, carpets, windows or post-construction cleanup?
• What happens to my coverage if I hire my first helper?
• What is the deductible, and what are the per-claim and total limits?

Tell the agent about every service you offer. If you add one later, like pressure washing or window work above the ground floor, ask whether your policy still applies.

When to get help from a licensed agent

Talk to a licensed agent whenever a contract asks for specific limits, endorsements or a bond. Do the same before you hire anyone, even part-time help, because workers' comp rules can change the moment you have an employee.

Your state insurance department can confirm whether an agent is licensed, and your state labor or workers' comp agency can tell you which rules kick in once you hire. Get those answers in writing.