As a cleaning contractor or owner of a small cleaning business, attention to detail is an important part of what you do. Maintaining high cleaning standards helps build your reputation and grow your business into a professional operation. Another important commitment to professionalism is insuring your business. Because no matter how careful you are, there are things that go wrong that are out of your control.
A claim against your cleaning business could mean you’re legally and financially liable and that could you cost more than just thousands of dollars: it could mean the end of your business too. Business Insurance covers you and your employees in the event of damage, theft, or personal injury to a customer or third party. Read on to find out how Liability Insurance, Business Assets Insurance, Employee Theft Insurance, and Business Interruption Insurance for cleaners could help protect your cleaning business when things get messy.
Cleaning work is not only physically demanding and labour-intensive, it can be risky too. Most cleaning work is done on site at a customer’s premises, so cleaners spend part of their work day travelling to different job sites while transporting cleaning equipment from site to site. Because of the nature of their work, cleaners are vulnerable to a number of risks, including:
Whether you’re the owner of a small cleaning business or an independent cleaning contractor, there are some NZ insurances that can help your business remain operational when things go wrong. These include Liability Insurance, Business Assets Insurance, Employee Theft Insurance and Business Interruption Insurance.
Liability Insurance is a necessity for most businesses, including small cleaning businesses and cleaning contractors. It may even be a requirement to have Liability Insurance in order to undertake certain work. Liability Insurance covers a range of situations, and provides business owners with peace of mind, knowing that the cost of legal fees or compensation for damage to a customer’s property or injury to a customer or third party will be taken care of should a claim result.
A cleaning contractor working at a local shopping centre forgot to post the Wet Floor sign when mopping a shop floor. A customer slipped on the wet floor and broke a wrist, requiring surgery and physiotherapy. The customer lodged a claim against the cleaner for the cost of the medical bills, and was awarded compensation which the cleaner was forced to pay. Without Liability Insurance, the cleaner would have struggled to pay the claim, but fortunately the compensation cost and legal fees were covered by the cleaner’s Liability Insurance policy.
Cleaners rely on the tools of their trade and not having access to these would make a cleaning job hard, maybe even impossible. Replacing vacuum cleaners, carpet cleaners, steam mops, cleaning supplies, laptops or mobile phones is costly and many cleaners don’t have the available cash to spend if these are lost, stolen or damaged. Business Assets Insurance covers the equipment and supplies cleaners need to run a cleaning business if they get damaged, lost or stolen while in storage, being used on site, or in transit between jobs.
On arriving at a customer’s premises, a cleaning contractor from Tauranga discovered the commercial steam cleaner critical to their business was faulty and caused an electrical short circuit whenever it was turned on. Replacing the steam cleaner wasn’t a simple option as it cost in the region of $5,000. But without it, the cleaner was unable to do their job and earn a living. Fortunately, the cleaner was able to claim from their Business Assets Insurance policy, and replaced the steam cleaner without any delay.
Whether it’s a one-time theft or an ongoing scheme to pilfer money or stock, dishonest employees can be a significant financial drain on any business. If you become a victim of an unscrupulous employee who steals money or items belonging to you or a customer, Employee Theft Insurance could help protect you and your business, by covering claims that result from a loss caused by an employee’s dishonest or fraudulent act.
The owner of a small cleaning company noticed that a number of cleaning products were regularly being used up much faster than others. The extra supplies were kept in a separate storage area of the business and were on hand in case employees needed to stock up in a hurry. During stocktake at the end of the financial year, the business owner was shocked to discover how much extra supplies had been taken during the year, and calculated the cost of additional supplies to be in the region of several thousand dollars. After uncovering a case of ongoing employee theft, the owner was able to recoup the financial loss with a claim from their Employee Theft Insurance policy.
When a natural disaster, fire, theft, or vandalism prevents you from working and earning an income, your ongoing business costs still need to be covered. Every day your business is unable to operate, these costs mount up. It’s helpful to know Business Interruption Insurance will cover your financial loss and get you through the tough times. Business Interruption Insurance protects against loss of income when your business can’t operate, and covers costs such as staff wages, relocating to new premises, replacing destroyed equipment, or repairing damaged vehicles, making it easier for you to get back to work when you can.
The offices of a small cleaning business were flooded during an extreme high tide in the nearby estuary. Most of the commercial cleaning equipment was deemed unusable following the event, amounting to several thousands of dollars damage. As the equipment was a vital part of the business’ operation, without which it could not function, it was imperative that the business urgently replace all equipment so staff could return to work. A claim against Business Interruption Insurance was accepted and paid out immediately, so the business owner was able to replace the cleaning equipment. The policy also paid out for loss of income for the week that the business was unable to operate as well as the clean-up of the flood damaged areas of the office.
Working on site at a customers’ premises means the tools of your trade usually travel with you. So when your vehicle gets into an accident or is stolen, that can mean you’re no longer able to work and earn an income. Get back onto the road quickly with Commercial Vehicle Insurance that covers loss, damage and liability for commercial vehicles used for business purposes.
While stopped at a traffic light on the way to a cleaning job, an employee of a cleaning business was involved in a traffic incident. Extensive damage to the front and side panels meant the vehicle was off the road for a few weeks. Unfortunately, the other party involved in the accident was not insured, which left the business owner having to claim for the cost of repairs. Because both employee and vehicle were covered under the business’ Commercial Vehicle Insurance Policy, the claim was accepted and the business owner was able to have the vehicle repaired without incurring any cost.
At Max Insurances, our insurance advisers understand that finding the right NZ insurance to fit a business can feel confusing and overwhelming. But it doesn’t need to be complicated. Working closely with an insurance adviser from Max Insurances means you’ll get advice to help you make the right decision about your business insurance.
And, just as your business changes over time, so too should your insurance. So our insurance advisers also help with regular reviews of your insurance requirements as your business grows. No matter the size of your business – whether you’re an independent contractor cleaner or the owner of a small cleaning business with a few employees – business insurance is one of the best ways to protect your business from risk.
Give us a call now on 0800 ASK MAX (0800 275 629) to find out what your options are for business insurance for cleaners.
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