Why is insurance important for a cleaning business?

Operating a cleaning business, whether it’s domestic or commercial cleaning, comes with unique risks. Accidents can happen, property can be damaged, and claims of negligence may arise. In such cases, having the right insurance is a necessity.

Why do you need insurance for your cleaning business?

If something happens, regardless of whether you are to blame directly, you may be held liable and could end up paying compensation and damages if someone is affected. Likewise, you could also be out of pocket if your work is interrupted due to theft or other circumstances.

Having the right cover is therefore a wise investment. It’s important to note that while not all insurance is compulsory, there may still be specific business reasons for being insured, as being without cover could potentially affect your ability to attract and retain clients or retain income.

What are the key types of cover for a cleaning business?

Public liability insurance

Public liability insurance covers claims made against you for injuries to third parties or damage to their property. For instance, if you accidentally damage a client’s artwork or a client is injured by your cleaning chemicals, the potential costs for compensation and legal fees will be covered.

While public liability insurance is not a legal requirement, it may well be a requirement included in your client contracts – especially when working for large companies or public sector organisations.

Employers’ liability insurance

If you employ staff, even part-time or temporary workers, you are legally required to have employers’ liability insurance. It covers claims from employees who get injured or fall ill because of the work they do for you. Without it, you could face a fine of £2,500 for every day you’re uninsured.

Equipment insurance

Equipment and tools insurance covers the cost of replacing or repairing your cleaning equipment if it’s lost, stolen, or damaged.

If you are without your equipment, you’ll want to replace it quickly to continue working and not end up in breach of contract. Having equipment insurance means you can continue operating your business without interruption.

Personal accident insurance

When you work in the cleaning business, slips and trips are an obvious risk, as is the possibility of being harmed by hazardous chemicals. If you’re incapacitated due to an accident and can’t work, having personal accident insurance will mean your income won’t suffer while you’re out of action.

What if I work in both domestic and commercial properties?

The type of insurance you need doesn't significantly change, but make sure your policy covers the specific risks associated with both settings. If you’re unsure, speak to your insurer about your circumstances.

Is there a difference if I am a sole trader rather than a large cleaning company?

The fundamental requirements remain similar. However, larger cleaning companies with more employees would need higher coverage limits, especially for employers’ liability insurance.

Are there any additional types of cover I should consider?

Depending on your specific business model, you might consider business interruption insurance, which covers loss of income during periods when you cannot carry out business as usual due to an insured event (like property damage).

If your company uses commercial vehicles to transport equipment and staff, you’ll also need to ensure your vehicles are covered by appropriate business use policies or (if you have multiple vehicles) fleet insurance.