Insurance is a necessary business expense, but how much should you actually pay? Understanding how much is insurance for a cleaning business helps you budget accurately and avoid overpaying.
This guide breaks down real insurance costs for cleaning businesses of all sizes.
The Quick Answer
For most small cleaning businesses, expect to pay $300-800 annually for basic general liability insurance. Your actual cost depends on your location, revenue, coverage limits, and claims history.
| Business Size | Annual Revenue | Typical Insurance Cost |
|---|---|---|
| Solo startup | Under $50,000 | $300-500 |
| Small operation | $50,000-150,000 | $400-700 |
| Growing business | $150,000-300,000 | $600-1,000 |
| Established company | $300,000-500,000 | $800-1,500 |
| Large operation | $500,000+ | $1,200-3,000+ |
These ranges cover general liability insurance only. Additional coverage types add to the total cost.
Factors That Affect Your Premium
Insurance companies calculate premiums based on several factors.
Annual revenue is the primary driver. Higher revenue means more client interactions and more potential for claims. Insurers use revenue to estimate your risk level.
Number of employees increases risk. More people means more potential for accidents. Policies with employees cost more than solo operator policies.
Types of services matter. Basic residential cleaning costs less to insure than specialty services. Pressure washing, biohazard cleaning, or working at heights increases premiums.
Location affects rates significantly. Urban areas typically cost more than rural. Some states have higher insurance costs overall.
Claims history impacts future rates. Previous claims increase your premiums. A clean history earns better rates.
Coverage limits affect cost directly. Higher limits cost more but provide better protection.
How Much is Insurance for a Small Cleaning Business?
Small cleaning businesses have the most affordable insurance options.
For solo operators doing residential cleaning, expect $300-500 annually for $1 million/$2 million general liability coverage. That breaks down to roughly $25-42 per month—less than many people spend on streaming services.
How much is cleaning business insurance for a small operation with one or two employees? Plan for $500-800 annually for liability coverage, plus workers’ compensation costs.
Types of Coverage and Their Costs
Different coverage types protect against different risks.
General liability insurance is the foundation and covers property damage and bodily injury claims. Cost for cleaning businesses runs $300-800 annually for small operations.
Workers’ compensation insurance is required in most states when you have employees. It covers employee injuries on the job. Cost varies significantly by state and is calculated as a percentage of payroll, typically $0.50-2.00 per $100 of payroll for cleaning businesses.
Commercial auto insurance covers vehicles used for business. Personal auto policies often exclude business use. Cost runs $1,200-3,000 annually depending on vehicles and drivers.
Bonding protects clients against employee theft. Cost is 1-5% of the bond amount annually. A $10,000 bond costs roughly $100-500 per year. Our guide on how to get bonded for a cleaning business explains the process and when bonding is worth the investment.
Tools and equipment coverage protects your cleaning equipment. Cost runs $100-300 annually for typical coverage.
Business owner’s policy (BOP) bundles general liability with property coverage at a discount. Cost runs $500-1,200 annually for small cleaning businesses.
How to Get the Best Rates
If you’re still in the early stages and need to handle both licensing and insurance at once, our guide on how to get licensed and insured for a cleaning business covers the full process. Once you’re ready to focus on getting the best deal on your coverage, here’s how to reduce costs without sacrificing protection.
- Shop multiple insurers since prices vary significantly. Get at least three quotes before purchasing.
- Choose appropriate limits. Don’t over-insure or under-insure. $1 million per occurrence is standard for small cleaning businesses. Increase as you grow.
- Bundle policies. Many insurers offer discounts for bundling liability, auto, and property coverage.
- Pay annually. Monthly payment plans often include fees. Annual payment saves money.
- Maintain a clean record. Avoid claims when possible. Your claims history follows you and affects future rates.
- Increase deductibles. Higher deductibles reduce premiums. Just ensure you can afford the deductible if you have a claim.
Work with a specialist. Insurance brokers who understand cleaning businesses often find better rates than general insurers.
Insurance Providers for Cleaning Businesses
Several options exist for cleaning business insurance.
National carriers like State Farm, Farmers, Progressive, and Nationwide offer business policies. They’re widely available but not specialized.
Specialty insurers focus on cleaning and janitorial businesses. They understand industry risks and may offer better coverage or rates.
Online insurers like Next Insurance, Hiscox, and CoverWallet offer quick quotes and easy purchasing. They work well for straightforward coverage needs.
Insurance brokers shop multiple carriers for you. They’re helpful for complex situations or when you need specialized coverage.
When to Increase Coverage
Your insurance needs grow with your business. Increase coverage when annual revenue increases significantly, you add employees, you take on commercial clients (they often require higher limits), you add services with higher risk, or you acquire vehicles or expensive equipment.
Review your coverage annually. What worked when you started may be inadequate as you grow.
The Cost of Not Having Insurance
Skipping insurance to save money is dangerous math.
One lawsuit can cost tens or hundreds of thousands of dollars. Breaking one expensive item could cost more than years of premiums. Operating uninsured excludes you from commercial clients. You’re personally liable for everything without insurance.
The $300-800 annual cost of basic liability insurance is insignificant compared to the potential cost of operating uninsured.
Your Insurance Solution Starts Here
You now understand how much is insurance for a cleaning business—the costs, factors, and options available.
Insurance is a business investment, not just an expense. It protects everything you’ve built and enables opportunities that uninsured competitors can’t access.
At the Cleaning Business Institute, our courses cover insurance and risk management for cleaning businesses. We help you understand what coverage you need and how to get it affordably.
Get expert guidance. Take our free Cleaning Business Quiz. We’ll analyze your situation and recommend the right training. Complete the quiz and unlock a limited-time offer saving you over 50%.
Protect your cleaning business with proper insurance.