Workers’ Compensation Insurance for Cleaning Businesses: Essential Coverage for Your Team

If you have employees, you need to have workers’ compensation for your cleaning business. In most states, it is required by law if you have at least one part-time employee. Keep in mind that your cleaning staff is at particular risk when doing their jobs, and your chances of having a claim are high. You don’t want to have to deal with a lawsuit and pay the legal expenses out of pocket when a workers’ compensation insurance policy can cover the costs. 

Why is Workers’ Compensation Insurance Crucial for Cleaning Businesses?

Workers’ compensation for cleaning businesses is crucial because your employees are at risk of injury whenever they report to work. Numerous types of accidents can happen, including the ingesting of chemicals and slip-and-fall accidents. If you don’t have workers’ compensation insurance, you’re on the hook for all the medical expenses and legal fees incurred when an employee sues you for injury. By having insurance, you mitigate your risk and put your company in a position to remain financially solvent. 

What Does Workers’ Compensation Cover?

Workers’ compensation insurance covers four different areas of financial remedies. 

• Medical Expenses for Job-Related Injuries: This pays for the treatment of injuries that an employee gets while working. It includes emergency services, doctors’ visits, and physical therapy if necessary. 
• Lost Wages for Recovering Employees: Employees are able to collect a percentage of their salary when they are unable to work due to a work-related injury. 
• Temporary or Permanent Disability Benefits: When the employee is deemed disabled, the workers’ compensation policy pays disability payments to help the employee pay their bills. 
• Support for Death Expenses: Employees’ families may receive anywhere from $1,000 to $10,000 for death benefits to help with burial costs if the employee dies as a result of his work-related injury. 

Common Risks in the Cleaning Industry

There are some common risks employees face in the cleaning industry that employers need to be aware of. 

Chemical Exposure

Cleaning staff will use a myriad of cleaning solutions to get the job done. A mixture of these or prolonged exposure can result in a health issue for employees. 

Slip, Trips, and Falls

Wet floors are a hallmark of the cleaning industry. Your staff is exposed to a greater risk of falling.

Repetitive Strain Injuries

Cleaning staff may experience repetitive strain injuries such as carpal tunnel syndrome or tennis elbow because of the constant swiping and wiping motions used in cleaning. 

Legal Requirements Regarding Workers’ Compensation for Cleaning Businesses

While there are no federal regulations mandating workers’ compensation insurance, every state with the exception of Texas, has a workers’ compensation law requiring employers to get a policy. Failure to get a policy can result in steep penalties. For example, you might be required to pay $100 per day per employee for the lack of insurance. 

Benefits for Business Owners

We’ll look at three benefits to employers who get a workers’ compensation insurance policy. 

Protecting Your Employees

When you have workers’ compensation insurance, you protect your employees and ensure that they will have the support for medical expenses and income needed when they get hurt. Because it isn’t coming out of your pocket, getting the best care is an easy decision to make. 

Safeguarding Your Assets

Employers who have a workers’ compensation insurance policy protect their assets. Most state laws prevent employees from suing when they make a workers’ compensation claim on a policy. This helps prevent an attack on assets. The payments made are made by the insurance company, even for legal costs. 

Enhancing Business Credibility

The broad public and your employees will have a better opinion of you when you have a workers’ compensation insurance policy in place. It gives your business credibility because you are protecting your employees and showing business responsibility. 

Choosing the Right Policy for Your Cleaning or Janitorial Company

Small business owners will want to shop with different insurance carriers for the best policy and price they can get on workers’ compensation insurance. Make sure you are comparing an equal policy when shopping that has the payroll and job classification codes match. This ensures you are comparing prices equally. Some carriers have a bigger appetite for certain industries and will price policies more competitively to capture that share of the marketing. 

When you buy a policy, make sure that you understand the policy terms. Ask the insurance agent about any exclusions to the policy that may affect coverage. Also, work with the agent to ensure you are getting the right amount of coverage. Most carriers start policies at $100,000 in coverage. This may not be enough for your needs. Ask what it costs to get $1 million in coverage to cover catastrophic losses. 

Safeguard Your Team and Your Business With Workers’ Compensation Insurance for Cleaning Businesses

Getting a workers’ compensation insurance policy for your cleaning business doesn’t need to be difficult. Talk to an agent at one of our best-rated workers’ compensation insurance carriers to find a company that will cover you, answer your questions, and do it all for a competitive price.