Do house cleaners need insurance to operate in Canada? If so, what is the best insurance for cleaning business in Canada? In this article, you will learn about the requirements for a janitorial service provider in Canada, as it pertains to insurance.
The Canadian Janitorial Market by the Numbers
Let us talk about some of the current stats of the house cleaning market in Canada. According to Statista, the Canadian household cleaning market is expected to grow by 4.52% between 2022 and 2026.
It appears to be that one of the janitorial cleaning markets get the most attention. According to Allied Market Research, the commercial or residential cleaning market grows the more. As per the report, the commercial cleaning market recorded a massive growth in revenue in 2020.
That can be attributed to the rise or increase in the numbers of commercial and residential properties, ranging from offices and clubs.
What is Insurance for Cleaning Business in Ontario?
This is a type of insurance policy that covers your cleaning business with an insurance-backed financial security.
The type of policy you buy depends on a couple of factors, including the size of your business and the specific cleaning service offered.
What Type of Insurance do I Need for a Cleaning Business?
Now, let us talk about some of the insurance for cleaning business Canada. Here are some of top policies you should consider buying.
1. Commercial Auto Insurance Policy
You work so hard to ensure that your client’s home and properties in Canada look their best. However, make sure you don’t have dirt on your own hands. This is easier to tackle when you have the right coverage.
You need the auto or vehicle insurance policy. It is relevant if your cleaning business has a vehicle that either conveys the staff/cleaners or the equipment to the site.
In addition to protecting the vehicle, the commercial auto insurance policy also provides cover for the passengers. This includes the driver and the cleaners who are being transported.
Depending on the wordings of the policy, the insurance may payout the claims if the vehicle gets damaged or wrecked because of the recklessness of an uninsured driver.
2. Pollution Liability Insurance for House Cleaners
This is a type of liability insurance, designed to cover your cleaning business for claims by third-parties. The third-parties here refer to the neighbors or the passers-by who may be negatively affected by the activities of your cleaning activities.
The pollution liability insurance covers your business from claims arising from the negative impacts of the chemicals to the public.
It is also known as the Environmental Insurance. You can also use it to get coverage when the toxic chemicals cause bodily harm or damage to the third-parties’ properties.
3. Commercial Property Insurance for Janitorial Service Providers
You need this type of insurance for cleaning business Canada if you run a physical office for the cleaning business.
It doesn’t matter if you operate from a warehouse, a big office or even a leased space. With commercial property insurance, you will be able to protect the structure and the content if they get damaged, stolen or lost.
4. Bonding Insurance for Cleaning Business
This type of insurance for cleaning businesses in Canada is for cleaning business owners that have employees working for them.
The bonding insurance policy covers an employee who caused bodily injury or stole from a client or customer of the business.
5. Workers’ Compensation Insurance Policy
You need workers’ compensation insurance if your janitorial business has lots of people working for it.
Unlike bonding insurance, it specifically covers employees for workplace-related injuries. That is, you will be expected to cover the lost wages and medical expenses of your employees who got hurt or injured while working for the business.
6. Commercial Insurance for Cleaning Businesses in Canada
If your cleaning business has an office and has lots of visitors, it needs to have measures in place to protect these persons. Getting a commercial insurance policy is a great start.
It protects the cleaning business from claims from customers or visitors who were hurt while at the office.
The commercial insurance also protects the business if an employee or worker was the cause of such a property damage or bodily injury.
7. Equipment Breakdown Insurance for Ontario Cleaners
It is also known as the Tools and Equipment insurance. It provides coverage for your cleaning gear and equipment. From your most-treasured equipment to the ones you don’t need that much, the policy covers them.
Note that your equipment insurance provider might prioritize the heavy cleaning equipment or the ones that cost the most amount of money.
Do I Need a Cleaning License to Operate in Ontario?
Your cleaning business is a business and as such, needs to be protected from financial loss. Besides, it is mandatory to have a house cleaning license in Ontario.
In fact, most clients and homeowners will request proof of your business registration and licensing before letting you have the job.
What Type of Cleaning Businesses are Protected?
The scope of insurance for cleaning business in Canada is for the businesses that provide maintenance for residential and commercial buildings.
Examples of the categories of businesses protected with the insurance are:
- Janitorial services
- Window cleaning services
- Lawncare services
- Waste disposers
- Landscaping service providers
- Automobile cleaners
- Pool cleaners
- Carpet cleaners
What is the Cost of Insurance for Small Cleaning Businesses in Canada?
The average cost of getting a cleaning business insurance policy in Canada is between $900 and $3,000.
The cost of purchasing and keeping the insurance for cleaning business open in Canada varies by the providers.
Here are some of the factors to consider when choosing your cleaning insurance provider:
How Much You are Expected to Pay
How much does the insurance company want you to pay? Consider getting quotations from different providers to have an idea of the average cost.
The Size of the Business
How many employees or workers do you have on your payroll? How big is the office space or warehouse of the business?
Cost of Insuring the Equipment
The costs of providing insurance for the business equipment and tools is also considered. Heavy equipment can cost more money to insure than the smaller pieces of equipment would.
Getting insurance for a cleaning business in Canada is a major step to protecting the business, its tools and employees from unforeseen future expenses. Contact a professional insurance agent to help you understand what the policy can offer you, your business and the workers.