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04 Nov The Importance of Janitorial Insurance
As the owner of a janitorial services business, you want robust insurance coverage for your operation, your employees, and your equipment. That’s a necessity for staying in business, let alone being competitive. One major claim can drive a business into bankruptcy. If your business has been around long enough to become consistently profitable, don’t risk losing it due to inadequate coverage. Make sure you have janitorial insurance.
Your janitorial business needs janitorial insurance to protect it from a variety of damaging events. Damages can range from theft of equipment to the major injury of an employee. Should an employee make a major claim against your business, you can benefit from income insurance to help keep your business running. That insurance keeps you operating during the processing of a covered claim. A janitorial business will need coverage that’s designed for the janitorial services industry. Getting in touch with XINSURANCE can help protect your business.
XINSURANCE helps provide specialty coverage for many kinds of specialized service provider businesses. We have a history of working with service companies. The specialized knowledge of the service industry is vital for a company helping with insurance needs.
The Janitorial Services Industry and Its Unique Challenges
A janitorial business is more than just people pushing brooms and mops. Janitors also use power equipment, including floor buffers, waxers, and scrubbers. In an industrial setting, janitors may use very large and powerful equipment, such as a high-pressure water cleaner for very oily or greasy areas in a factory. In some cases, janitorial duties overlap yard work, where janitors use snowblowers, lawnmowers, and chainsaws. There are also risks associated with chemicals and proper usage.
Power machinery has made it possible for janitorial staff to do much more work, much faster, compared to how things were done generations ago. But, that has also increased the cost of doing business. A substantial investment in power machinery is often necessary just to stay competitive. Damage to, or loss of, such major capital investments requires robust insurance.
One of the advantages of a janitorial business is that required employee training is fairly minimal. However, that can work against the business owner. Just because training is required, doesn’t mean it shouldn’t be done. For the protection of the business, we recommend that business owners go above requirements and ensure employees are educated regarding health, safety, and the best ways to use equipment.
The Janitorial Business and Liability
While employee loyalty is nice to have, it will not protect you from a claim from an unhappy client. Even if you are in the right, it may take time and money to defend against a baseless lawsuit. Janitorial insurance, therefore, is a must.
A problem that can occur for any janitorial business owner is underestimating the size of a new project. If the job takes too long or is done improperly, you may lose a client, and any repeat business you could have had. On top of that, the unhappy client might sue for lost revenue during the time the business was unable to operate.
If a project gets behind schedule, there is an increased risk that the client will sue for breach of contract or negligence. Again, it is a good idea to have insurance that will help protect against such claims.
If employees are bringing company equipment to the job site, taking it away, or even using company vehicles, you need coverage. Damage to your vehicles, or the equipment, needs to be addressed by proper insurance.
Janitorial Insurance for the Janitorial Services Industry
All businesses, including a janitorial business, need fundamental coverage. Do you own any buildings? What about your equipment, including vehicles? You will also need janitorial insurance to cover you financially if your business operations are temporarily halted. Limited general liability is also appropriate, but that’s just the basics. More coverage is needed.
- Errors and omissions pay some costs for dealing with claims against you. Besides covering you for services done incorrectly, sometimes coverage is provided for baseless lawsuits, where you did nothing wrong.
- Additional liability coverage, or umbrella coverage, starts where general liability ends. Additional coverage is essential as your business grows and increases in value.
- Equipment insurance covers the essential tools and equipment you must have to run your business, everything from mop buckets to computer-controlled floor scrubbers.
- Business auto insurance is needed for company vehicles. If you use your personal vehicle for your business, covering this too can help protect you and your business.
- Please note that we do not provide workers comp.
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