How Much Is Insurance for a Small Cleaning Business?

(Get all your answers from an expert and find the coverage you need.)
Written by Ashley Surinak
Written by Ashley Surinak

Insurance doesn’t have to be boring. That’s why we hired Ashley Surinak to be our BA insurance writer. Ashley specializes in making mundane subjects hella-entertaining.

paul martin Reviewed by Paul Martin
paul martin
Reviewed by Paul Martin

Paul Martin is the Director of Education and Development for Myron Steves, one of the largest, most respected insurance wholesalers in the southern U.S.

Ask an Insurance Expert graphic


Is business insurance required for a small cleaning business?
Which factors impact the cost of insurance for a small cleaning business the most?
What are the primary concerns with insuring a small cleaning business?
Expert(s) Found on this Page

Is business insurance required for a small cleaning business?

I’ve been thinking about starting my own small cleaning business for some time, but I’m still concerned about costs. I’m in the process of adding up how much it’s going to cost to get everything going and I’m really not sure what I need in terms of insurance or how much money I need to set aside for that. 

Insurance for any business – small or otherwise – can be tricky. It’s difficult to figure out when you need coverage, when it’s optional, and, if you do decide to purchase insurance, how much it’s going to cost. 

Let’s start with Step 1 by answering the big question: Do you need insurance for a small cleaning business? The answer is that it depends. 

If you have employees and are operating in any state other than Texas, the law requires that you purchase workers' compensation coverage. If you offer some sort of qualified benefits to employees, you’ll need fiduciary coverage, too. Or, if you’re a one-person show, you may still need insurance because of a business contract you enter into. And if none of this applies, insurance is technically optional. 

When I say optional, I mean that sometimes it’s truly optional and other times it’s not. We’ll talk more about the factors that affect costs here, but if you have a lot to lose, insurance may be optional, but it isn’t if a lawsuit or accident could mean losing everything. 

Which factors impact the cost of insurance for a small cleaning business the most?

I tend to err on the side of caution, so I think I’m going to buy insurance for my small cleaning business regardless of whether it’s legally required. That being said, which factors will affect the cost of insurance the most?

There are a few factors you may want to discuss with your independent insurance agent. However, the most determinative factor is the stakes.

By stakes, I mean what do you stand to lose if something goes wrong. If there are big stakes, then you need more coverage. If the stakes are small, you may just need a very small amount of coverage (or none at all).

Think of big stakes as the kind that are so monumental that the amount of damages could ruin your life if there’s a lawsuit or some kind of loss. For a small cleaning business, it could mean that you’re cleaning the homes of very wealthy individuals and the theft of a piece of jewelry could bankrupt you. You can think of small stakes as the exact opposite: You’re running a one-person show and you know you won’t steal, so you’re just worried about inadvertent damage to relatively inexpensive property in a home.

See the difference?

What are the primary concerns with insuring a small cleaning business?

What are the primary concerns I should have when it comes to thinking about the scope of coverage for my small cleaning business’s insurance? 

This is sort of the same thing as wondering which factors are going to affect the cost of coverage, but it’s not exactly the same. Let’s break it down.

The primary issues that you have to worry about with small cleaning business insurance are:

  • Theft
  • Potential for damage to homes 

These issues don’t exist in a bubble. After all, the potential risk due to theft and potential damage is hugely influenced by the type of areas where you’re cleaning. If you’re cleaning the homes of upper-class individuals, there’s more to lose because of theft and pricier property that could break. On the other hand, if you’re cleaning middle-class homes, the risk is far lower. 

Of course, the number of employees you have, as well as how well you know and trust those employees, may factor in to whether you feel the need to purchase insurance and how much coverage you’d like. 

The best way to make any sort of informed decision about this is to speak to your independent agent so you can weigh all of the pros and cons and get the coverage that makes the most sense to you.

Share this page on Twitter Share this page on Facebook Share this page on LinkedIn