How Much Does Cleaning Business Insurance Cost?

Company	Average General Liability Quoted Premium	Average BOP Quoted Premium
Contractors Bonding and Insurance Company (RLI)	$1,190	$1,239
Liberty Mutual Insurance Company	$1,870	$1,591
Hiscox	$1,021	$509
ACUITY, A Mutual Insurance Company	$662	$974
Rockingham Casualty Company	$2,199	N/A
The Hartford	$1,835	$1,943
Clear Spring Insurance Company	$1,042	N/A
Nationwide Mutual Insurance Company	$651	$317
United States Liability Insurance Group	$1,528	$942
Travelers	$1,721	$1,792
Average	$1,372	$1,163

*The above quotes are based on typical coverage amounts of $1 million per occurrence and $2 million aggregate.

When reviewing cleaning business insurance quotes, it’s important to note that all providers don’t offer the same level of coverage or the same benefits. While one company may offer a lower price, it may exclude certain coverages. Be sure to read the fine print to find out what’s included.

Factors Influencing Cost

There are many factors to consider when pricing general liability coverage, BOPs, and workers’ compensation policies. 

General Liability

General liability insurance can help to cover costs if your cleaning business is found liable to a third party for property damage, bodily injury, personal injury, or advertising injury. 

The main factors that impact the cost of a GL policy include: 

• Industry: Insurers will assign your business a general liability class code depending on the type of work your business performs and where it’s located.
• Physical business location: If you operate out of a commercial property location, insurers will want to know its size, condition, and how much foot traffic it gets. Larger buildings with higher levels of foot traffic will be more expensive to insure. Your price could also go up if your building’s condition presents risks (e.g. older building that’s not up to code).
• Services provided: The services you provide can make your business higher risk so insurers may ask questions about your specific offerings. For example, Nationwide asks if you provide floor waxing, remediation work, restoration work, work in high-traffic properties, or work in hospitals.
• Business size: Insurers often consider your business’s annual revenue. Larger revenue amounts typically mean a larger operation that presents more risk. Insurers may also consider the number of employees you have and the amount you spend on payroll. 
• Experience: The level of experience of your business and its operators might be considered. More experience may earn you lower rates. 
• Claims history: Insurers may look at your claim history to predict the likelihood of claims in the future. They might ask if your business has been involved in any loss or litigation in the past, and if your business insurance has been canceled or non-renewed in recent years due to reasons such as non-payment.
• Deductibles: Policy deductibles also influence premiums. Choosing a higher deductible will often lower your premium. 
• Limits: General liability policies come with various limits. The higher your limits, the more your coverage will cost.

BOP

A business owner’s policy (BOP) combines general liability coverage with commercial property insurance. The latter covers damage to a building you rent or own, and the property within it, if the damage is caused by a covered peril like fire, theft, or burst pipes. 

The cost for commercial property coverage in your BOP will often depend on factors, including:

• Size of building: The larger your building, the more expensive it will be to repair or replace in the event of total loss. As a result, larger properties are more expensive to insure. 
• Value of your business property: The value of the business property within your building will be a factor in your costs because the policy covers property loss and damage. 
• Approach to valuing your property: Insurers may offer to compensate you based on the actual cash value (ACV), the replacement cost value, or the fair market value of your business property. Replacement cost policies tend to have higher premiums because they replace the covered item with a new one, rather than just reimbursing you for the depreciated cash value of the item like an ACV policy. 
• Location: The location of your building will also be a factor. For example, areas more prone to crime, fires, or other natural disasters will be considered higher risk.
• Deductible: The deductible you choose will often impact your premiums. Higher deductibles usually mean lower premiums. 

Workers’ Compensation

If your employees suffer work-related illnesses or injuries, workers’ compensation helps to cover the associated covered costs such as lost wages and medical expenses. Your cost for coverage will depend on factors such as the location of your business, the number of employees you’re covering, your payroll, your claims history, and the type of work your employees perform.

Top Companies for Cleaning Business Insurance

• Contractors Bonding and Insurance Company (RLI)
• Liberty Mutual Insurance Company
• Hiscox
• AmTrust
• ACUITY, A Mutual Insurance Company
• Rockingham Casualty Company
• The Hartford
• Clear Spring Insurance Company
• Nationwide Mutual Insurance Company
• United States Liability Insurance Group
• Travelers

How to Save Money on Cleaning Business Insurance

• Shop around: Costs vary greatly from one insurer to the next. By shopping around with multiple providers, you can find the best overall policy value. 
• Opt for essential coverage: The more coverage you buy, the more it will cost. Assess the needs of your business to identify which coverage types are most beneficial and essential. For example, you may want to start with general liability coverage and then upgrade to a BOP policy down the road. 
• Drop coverage limits: Higher coverage limits typically cost more. If you need a more affordable premium, consider dropping the limits on certain coverages. 
• Increase your deductible: Consider increasing your deductible as it will lower your premium cost.
• Ask about prevention discounts: Insurers may offer lower premiums if you take certain precautions such as installing fire suppression or security systems.