Like any business, cleaning services come with their own set of risks, from accidental damage to injury and even potential legal disputes. This is where insurance comes in.
Insurance is a crucial part of any small business’s strategy to protect against unforeseen events. It also demonstrates professionalism to your clients, showing that you take the necessary steps to safeguard your business and their property.
In this guide, we’ll cover the key types of insurance you’ll need for your cleaning business startup in the UK.
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Public Liability Insurance
One of the most important types of insurance for a cleaning business is public liability insurance. This is especially vital because you’re working in other people’s properties, and accidents can happen. Public liability insurance protects you if a customer or a third party claims that your cleaning services caused them injury or damage to their property.
For example:
– If you accidentally knock over a customers television while cleaning, or
– Whilst mopping, a client slips and injures themselves on an unmarked wet floor
Without public liability insurance, you could end up paying for medical costs, legal fees and compensation claims out of your own pocket. This could be financially devastating for your business.
How much cover do I need?
A typical amount of cover for a cleaning business is between £1 million and £5 million, depending on the size of your business and the type of clients you serve.
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Employer’s Liability Insurance
If you have employees working for you, employer’s liability insurance is legally required in the UK. This type of insurance covers you if one of your employees is injured or becomes ill as a result of their work.
The law requires all businesses with employees to have at least £5 million of cover, although many businesses opt for higher coverage for extra peace of mind.
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Tools and Equipment Insurance
In a cleaning business, your tools and equipment are crucial to your day-to-day operations. From vacuums and steam cleaners to mops and buckets, all of these items can be expensive to replace if something goes wrong.
Tools and equipment insurance covers the cost of replacing or repairing your tools if they’re damaged, stolen, or lost. If you’re using specialist equipment for certain types of cleaning (e.g., high-end cleaning machines for commercial spaces), this type of cover is especially important.
You may also want to consider business contents insurance to cover any cleaning supplies, chemicals or other inventory that you keep in your office or storage space.
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Professional Indemnity Insurance
Although not always essential, it can be beneficial if you’re offering advice or a specific cleaning service where errors or omissions could result in financial loss for a client. This insurance covers you if a customer alleges that your work didn’t meet the expected standard or caused them financial loss.
While it’s not a requirement for all cleaning businesses, professional indemnity insurance is particularly important if you offer specialist cleaning services (e.g., end-of-tenancy or post-construction cleaning) where more complex tasks may lead to disputes over the quality of work.
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Motor Insurance for Commercial Vehicles
If you use a vehicle for your cleaning business – whether it’s to transport your equipment or travel to clients’ properties – you’ll need commercial vehicle insurance. This is different from personal car insurance, as it specifically covers your business-related use of the vehicle.
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Business Interruption Insurance
Business interruption insurance can be a lifesaver if something unexpected happens that causes your business to stop operating temporarily, like a fire, flood or other major event. This type of insurance can help cover your loss of income, ongoing costs and any additional expenses while you get back on your feet.
For cleaning businesses, this can be particularly important if you rely on contracts with regular clients, helping you cover costs while waiting for your business to return to normal.
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Accidental Damage Insurance
Accidental damage insurance can cover you for any accidental damage that occurs while you’re carrying out your cleaning tasks. If you break something, such as a window or a piece of expensive furniture, this insurance can help cover the repair or replacement costs.
This is particularly useful when you’re working in client properties, as even the best cleaners can occasionally make mistakes that lead to damage. Without this coverage, you might be held liable for costly repairs.
Conclusion
Running a cleaning business involves various risks and having the right insurance is essential to protect both you and your clients.
Whether you are a sole trader or have employees, shop around. Every company has specific needs and doing your homework can give you peace of mind, saving you a lot of money and stress in the future. An insurance broker or your accountant can help you find the right coverage with payment schemes to suit you.
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