Your cleaning or maintenance service business could be vulnerable to a costly claim if you’re only insured with basic coverage. While the insurance policies listed in last week’s “4 Fundamental Insurance Policies…” article strengthen the foundation of a small business, additional insurance can provide comprehensive protection that your business may need to avoid a financial mess. This extra coverage can fill in gaps where your business would not otherwise be financially protected.
Below we describe six additional business insurance coverages to consider for more comprehensive protection of your cleaning and maintenance service business.
When your general liability, auto liability, or other liability insurance limit is only enough to cover part of a costly claim, an umbrella insurance policy is there to help with the remaining costs. An auto accident caused by your employee in the company van, for example, results in claim settlement and defense costs of $2 million. If your auto liability policy only covers $1 million of this total cost, the umbrella insurance coverage is there to pay the remaining $1 million.
If your cleaning equipment, computer systems, or other property used in your operations are frequently moved from jobsite to jobsite, an inland marine insurance policy could keep your business afloat. While a property insurance policy may only provide coverage for limited types of tools and equipment that are damaged within a certain distance from your designated business location, an inland marine policy will cover tools and equipment that are damaged further away from your premises.
Crime against your business can happen when least expected, robbing your business of serious money. To be prepared, a crime insurance policy covers employee theft, forgery/alteration, and loss of money or securities on and off premises.
ISO Janitorial Services Endorsement
Covering a broad range of risks, NIP Group’s add-on ISO janitorial services endorsement includes several coverage enhancements for more complete protection. Coverage includes key and lock replacement if a customer key is accidentally lost, theft of client property, property damage due to your work, damage to client property in your custody and care, and much more.
Blanket Additional Insured
If customers are requesting a certificate naming them as an additional insured on your insurance policies, blanket additional insured could save you time and unnecessary expenses. This automatically extends “Additional Insured” status to your customers without the paperwork and potential fees each time it is needed.
Business Income – Dependent Properties
When income is lost from damages to client or other non-owned property, business income for dependent properties will cover your loss. For example, if a school that you have a janitorial contract with has a massive fire that prevents you from performing work and getting paid, having the available business income for dependent properties coverage will cover income lost during that time period.
To choose the insurance coverages that will best protect your cleaning or maintenance service, it’s important to first recognize the risks your business faces. After identifying these risks, review your current insurance policies so you know exactly what is covered and if these terms cover all of the areas where your business is vulnerable to a claim.
Need more than just basic insurance to cover all of the risks of your business? NIP Group’s MaintenancePro insurance program offers cleaning and maintenance service businesses both fundamental and additional insurance policies that can be custom-tailored to your business needs. Contact your insurance broker or visit www.nipgroup.com/programs/maintenancepro for more information.
Please note: All coverages are subject to conditions, coverage limits, limits of liability, limitations, and exclusions as contained in the policy.