CHAPTER 5 -: This is the fifth chapter of the Complete Guide to Starting a Cleaning Business. It’s your job as the proud owner of a cleaning business to make sure your customers’ homes and workplaces are always clean, tidy and tidy. so that living and working conditions are not compromised in any way.
However, have you ever wondered how you are going to ensure the sustainability and success of your valuable cleaning business in the face of an unforeseen and unwanted disaster? If a cat has 9 lives, then a business based on the sweat, tears, and blood of a relentless entrepreneur like you deserves at least a few.
Once you have legalized your business and taken care of its finances through a dedicated bank account, it is time for you to think about ways to deal with the awkward circumstances you are likely to face when going live. your company. It is at this crossroads that you should seriously consider purchasing essential insurance for your business before it is too late.
Before you can start making plans to hire knowledgeable staff or prepare a marketing program for your cleaning service or build a fan base, you need to focus on achieving and dusting the insurance part of your business. Insuring your business is one of the most important aspects of a successful business. Insurance may not seem like much to a budding entrepreneur like you, who might be more interested in finding new ways to maximize their income and get the most out of your profits. However, if you ask a smart and successful businessman about the importance of insurance, he will tell you that a business without insurance is doomed to failure.
As an entrepreneur, you shouldn’t just focus on methods and strategies to improve your business’s reputation, revenue, and repertoire; sometimes planning for the sustainability of your business or, in other words, planning for the survival of your business in the incredibly competitive cleaning industry is the key to growing your business. … Insurance is not just a formality, but a necessity that you simply cannot live without.
Why do you need insurance coverage for your cleaning business?
The number of insurance policies and forms of coverage is almost endless for the average person. However, all of the different types of insurance policies and insurance policies have a common agenda, which is to protect businesses from damage. This includes protecting cash flows and their intrinsic value from unforeseen catastrophic losses. What exactly do these losses refer to ?
Most budding entrepreneurs make the mistake of thinking that insurance is only necessary if the business is exposed to natural or man-made disasters. or accidents that can turn company assets into ruins. To be completely clear, the concept of catastrophic losses mentioned above is much broader than accidents and “natural disasters” and can refer to a number of factors that can interfere with the flow of your business.
These losses can range from physical damage to the theft of an employee’s legal liability to theft of intellectual property. You can insure your business to protect your business, rather than disrupting your normal operations due to government or third party interference. As you can clearly see, a fire in your office is not the only time you should call your insurance manager.
The varied nature of these losses may make you think that insurance policies are complex and difficult to understand, but you don’t need a rocket scientist to know the ins and outs of insurance and how to pull it off. make the most of the insurance policies that are available to you as a cleaning service contractor. The main idea behind insuring your business is to ensure the long term stability of your business and reduce the risk of bankruptcy, which is a nightmare for any entrepreneur, let alone that of cleaning up.
Does Commercial Insurance Only Help You Prepare For The Worst Case? It’s not always the case. Another important reason entrepreneurs find it necessary to insure their business is to protect the positive assets of the business. This can include key employees in your business, without whom operations will collapse. In some cases, entrepreneurs turn to insurance plans to implement their exit or succession strategies. Obviously, the possibilities with insurance are literally endless. Again, it’s important to understand that no matter what insurance you intend to carry, the policy is likely to benefit your business rather than reduce it.
What type of insurance do you need for your cleaning business?
There are many types of insurance that you can consider for your cleaning business. Given the great diversity of the insurance industry, it is imperative that you meet with your business partners (if any) and discuss the potential risks of your cleaning business. This discussion should be like an assessment session where you point out the gaps in your business armor. If you believe that a certain area of your business is vulnerable to catastrophic losses, it is worth purchasing an insurance policy for that area. You need to determine which insurance coverage is best for you and your business.
When thinking about the type of insurance coverage you should apply for, the first thing to consider is the security of your business assets. As you begin cleaning, your property will include a wide variety of equipment, tools, and products designed exclusively for interior and exterior maintenance. Insuring your property and equipment is not just a recommendation, but rather a commercial command.
It is also important to note that property and equipment insurance should always be at replacement cost. Goods and equipment can be marked as inventory. Insurance against loss of inventory or damage is a must for contractors involved in the cleaning industry, simply because of the wide variety of equipment involved and the frequency with which they are used.
For example, if you are hired to clean a huge mall, you can imagine how many bottles of stain remover you will need on a daily basis. In other words, you will need storage space for this incredible amount of stain remover. Assuming plastic stain remover bottles are flammable, what would you do if a fire breaks out and turns those precious plastic bottles into ashes ? so that your business comes across a stumbling block caused by a shortage of stain removers.
Liability insurance is another protection you should be aware of. The purpose of this insurance coverage is to protect you against disputes which may be based on a number of different issues.
General liability insurance
For example, standard liability insurance is especially necessary for a cleaning service business like the one you are about to start. In the field of cleaning, your customers entrust you with their property. You will send your employees to your customers and workplaces to clean these spaces according to your customers’ expectations. In order to meet the high expectations of your customers, your employees may accidentally damage your customer’s property. In some cases, exposed cleaning chemicals that have been mistakenly left behind after cleaning can be hazardous to the health of people in the offices or homes you have been assigned to clean. When you purchase standard liability insurance,
Once again, it is important to remember that what you are doing does not have to be intentional to be legally responsible for the damage or injury sustained. To prevent such accidents from escalating into a violent confrontation between the customer and the service provider, consider purchasing standard liability insurance for your cleaning business.
Product Liability Insurance
Product liability insurance is a more specific version of the standard liability insurance described above. As the name suggests, product liability insurance comes into effect when a specific product in your company’s portfolio causes harm, damage, or injury to a customer or anyone else in the vicinity of the products. Another insurance coverage that is very similar to product liability insurance is errors and omissions insurance. This insurance coverage is for any service business like a cleaning business that you hope to start in the next few days.
The reason is that insurance protects your business from the liability that arises from your business. A very simple example of why you might need this insurance could be your salary janitor unintentionally injuring an office worker for whom your company is responsible. cleaning. Often, cleaners can leave the floor wet without alerting passers-by, which ends up causing the first person to walk on the wet floor. If the unfortunate accident victim breaks a hip or two, they won’t be able to sue your business for hundreds and thousands of dollars if you have errors and omissions insurance.
Crime and loyalty insurance is something to watch out for as you will be involved in the cleanup. This type of insurance covers most service-oriented businesses. This means that a service-oriented business relies more on the productivity of its employees than on the performance of the equipment in inventory.
As an entrepreneur, you need to trust each of your employees, especially those who work in the field, that is, in your clients’ homes and offices. There can always be a case where your service team has a bad apple, leading to an unexpected and unfortunate theft incident.
For example, your employee may steal goods from inside your clients’ homes and offices. Under such difficult circumstances, it becomes necessary for you to purchase crime and loyalty insurance to ensure that your business will not go bankrupt if your client or victim of crime decides to take legal action. to your business for every penny worth it. p39>
There are more ways to make a customer angry than to simply damage and steal their property or hurt their staff or family. Sometimes, something as simple as losing your customer’s keys can pose a threat to your business. In this case, you can still lose your primary insurance to protect yourself from customer dissatisfaction.
Get a bonus for the cleaning company
It is more and more common for large companies to have cleaning contracts with your cleaning company and they would like to know if your cleaning company is related. This is one of the requirements that you have to meet if you want to clean at a higher level, which will earn you a lot of money.
Consolidating your cleaning business is one way to protect your business from losses that can result in the process of doing your job for a client. The fact that sometimes you are required to clean the office before employees return to work in the organization or after working hours makes sense in tying your cleaning business together.
A deposit is like insurance, but you may have to pay a little more than your insurance premium suggests. Simply put, gluing is a way to gain the trust of your cleaning business; it’s a way to show your customers that you are really up for more business. Now, let’s take a look at the steps to follow if you want to be connected to the cleaning company;
a. Make sure your cleaning company is registered
Now you might be wondering if registering your cleaning business is part of the bonding process. Yes, you cannot participate in the discussion on how to get your cleaning business if it is not registered. No insurance company will take you seriously if you visit them to let them know that you want your clearing business to be linked by their organization if the company is not registered in the first place. So what are you waiting for if you want to link your cleaning business first to register it with the business commissions in your country.
b. Obtain the required commercial license
In some states in the United States or countries around the world, you will need a special commercial license before you can be legally authorized to conduct commercial cleaning activities. You can go to the local government office to find out what kind of business license you need and how to get it. The truth is, no insurance company is going to want to bind your business if they find out that you don’t even have a license to do business in the jurisdiction. your company.
vs. Internet search for insurance companies selling bonds
There are various insurance companies that offer this additional service to their clients, especially cleaning staff due to the risk involved in performing the job for the client which will require them to work odd hours. When you search the Internet, you will find many insurance companies that offer this service. You are supposed to make a list of people close to you, including their address and contact number.
re. Compare the contrast and make your choice
Once you can compile a list of insurance companies offering this service, you will need to compare and compare their prices and services so that you can make a sound business decision that is in your favor. Without a doubt, exploring the various options available to you will give you the opportunity to choose the right company and the right package for your cleaning business.
e. Pay your deposit and get your certificate
The amount you have to pay as a premium for your bond is between 0.75% and 3% of the face value of the bond. For example, if you buy a bond worth $ 50,000 for your cleaning business, that means paying an annual premium of $ 150. Therefore, once you have decided what the insurance company will deal with and the amount of bonds that will be purchased for your cleaning business, you will need to complete all the paperwork, make the payment, and wait for your certificate to be issued.
Once you have received your certification, it means that you are ready to do cleaning business with larger companies and can compete favorably with existing cleaning companies in the cleaning industry in your country.
By now you may have realized that a lot can and will go wrong when working in the cleaning service industry. As mentioned earlier, your cleaning business insurance is not some sort of professional commitment to help your business become more professional. Rather, it is a way to provide a lifeline for your thriving business in the event of a disaster.
No matter how hard you try, you will never be able to fully prepare for the disasters to come. So instead of taking these disasters with open hands and letting the success of your business slip through your fingers, get insurance coverage for your business. Obtaining insurance can be seen as a sure-fire way to ensure the survival of your cleaning business in the industry, if not its success.