Everything to Know About Small Business Insurance for House Cleaners
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Insurance. Insurance for house cleaners. Why do you need it? When do you need it? How much does it cost? We’re going to talk about all these today. Now today’s blog is brought to know about insurance for house cleaners.
What? What is a pet taxi? A pet taxi is somebody who comes to your house, they pick up your pet, they take them to the vet to their appointment. They wait for them and bring them home so that you don’t have to take off work. If you offer pet taxi services, if you’re a licensed driver, and you’re insured, and you can offer this service, then go to any company who provides all these services immediately. All right. Onto today’s session, which is about insurance. Now, this is not from one particular house cleaner. This is from many house cleaners who asked us this 10 or 15 times a day.
When you go to get insurance, you will call an insurance company, and you will ask them for insurance and bonding. We’ll talk about both of those, but first of all, what is insurance?
What is Insurance?
Insurance is a little bit of money that you pay an insurance company, every single month. It’s going to be like $30, $40, $50, somewhere in that range. What happens is you give them money every month and you may never use your insurance policy. It’s just a guarantee. You’re paying them a retainer for their services. Now, if you ever damage something, and the policies go up to about $2 million if you damage something up to $2 million, they’re going to kick in and cover the cost of it. All you have to do is pay a deductible. There are different deductibles, but I recommend you choose one that’s at about $100 because that’s not going to break the bank. It’s going to be about the cost of a house cleaning.
Where do Small Business Insurance Providers Get Funding?
If you damage somebody’s hardwood floors and it costs $30,000 to replace those hardwood floors, you do not have to pay the $30,000. You pay $100 deductible and the small business insurance pays the $30,000. You say, “How does that work? How do they have $30,000 if I only gave them 30 per month?” All right.
Here’s how it works. There’s a bank account and in the bank account is all the money. All the house cleaners add in all the money. There’s this big pool of money, supposedly, that is the insurance fund. Supposedly you’re not going to damage somebody’s floors, so hopefully, and this is the hope, this is the perfect scenario, that you never have to use it.
If there are thousands of house cleaners paying into the big pool of money and they never use it, there’s the $30,000 that pays for you when you make a mistake. Hopefully, you never have to use it. All right.
When do you need an insurance policy?
This is our personal opinion, you need it as soon as you start taking money in exchange for house cleaning, even if you’re only one person, even if you are related to that person. When you start taking money in exchange for house cleaning, you need a small business insurance provider. Now if you go to buy a new car and you’re on the car lot and you try to drive that car off, oh no, no, no, no, no, no.
They are not going to let you off the car lot without verifying your insurance. Because if you get out of the parking lot and a car comes whizzing by, and it smacks that car, and it blows it to smithereens, guess what? Somebody has to pay for that.
Keep Your Online Reputation Clean
Check it out on social media when they tell all of their friends that their house cleaner lied, that they weren’t insured, they don’t have the money to cover the refrigerator, and what the heck does that do to your reputation? That is not cool. You cannot recover from that. That’s going to go viral and people are going to post it and repost it, and people are not going to hire you. Not cool.
Get a policy and do it legally. It’s industry standard to be bonded and insured. All right. Let’s talk about the bonding for a minute.
What is bonding? Why is bonding important?
Bonding is another insurance policy that if you or an employee of yours steals something from the customer’s house, that the bond will kick in and it will pay for the stolen item.
Then you can repay and make payments to the company to repair and replace whatever was stolen. There’s a catch, and here’s the weird catch about bonding. You’re probably never going to use a bonding policy, but here’s the catch, they have to prove you stole it. There has to be a police report. The police have to interview your people. The people that work for you have to confess that they stole it. They have to prove that you stole it in order for the bond to pay. If you’re one person and you know you’re honest, you don’t need a bond, but here’s the catch, get one anyway. Get one anyway. If you’re only one person and you know you’re never going to steal anything, get a bonding anyway.
Two companies. One small business insurance is bonded and insured. One is not. Who are you going to choose? 10 times out of 10 people will choose the company that’s bonded and insured. Why is that? It’s an added security and an extra piece of mind. That’s all it is. If you need it, it’s there. You probably will never use a bonding. Probably. You might get accused of stealing things from customer’s houses, but then the insurance and the guarantee is, “Hey, we are bonded. That is the purpose behind bonding and insurance.
In The Nutshell
It is a blanket peace of mind for you and your customers, and all things being equal. If there are two house cleaning companies in a competitive market, one is bonded and insured and the other is not, who are they going to choose? Our suggestion is just to go with the industry standard. Buck it up. Get the insurance policy, and now you’re a professional, and you can advertise that you’re bonded and insured because it lends an extra layer of credibility.