When you’re starting a carpet cleaning business, you understand there are financial risks and downsides, and the best way to mitigate these is to have good insurance. The most frequently used insurance for the carpet cleaning business is known as Common Liability Insurance. Insurance is so important that you should have it before you start any marketing for your carpet cleaning business. Below, we share essential information about this type of insurance and what you need to look for.
Make sure any insurance covers risks such as:
· Injury to the body
· Damage to property
· Medical payouts
· Legal costs
· Injury via advertising
Having this type of insurance is not necessary by law, but without it, you open yourself up to a lot more risk. Your business may be taken to court, and if you lose, you'll potentially have to pay a 6-figure sum or higher. An insurance policy can provide compensation for costs like this, and could be the thing that saves your business from bankruptcy. That's why it's so important to ensure that you investigate insurance policies thoroughly. In the next section, we will cover some specific situations that insurance could help carpet cleaners with.
Typical Situations Insurance Covers For Carpet Cleaners
The first example is where a shampoo device malfunctions and liquid spews across the private studio of your client. It wrecks their items. The insurance company would pay to replace their items.
The second example is where an employee of yours is frantically rushing to finish a job, runs into the client, and knocks her over. She hits her head and needs to go to the hospital. She asks that your company pays her bills. Your insurance company would cover these costs.
The third example is where a client rings you and says your staff damaged her rugs. She sues you over this. An insurance company would pay your legal fees and any damages owed to her.
There are many more examples than these, and sometimes there are exclusions relating to specific situations. That's why it's best to do your research about insurance policies. That way, you can pick one that covers all your needs, rather than one that fails you when you need it the most.
Additional insurance for the carpet cleaning business should also cover your equipment.
The Cost Of Insurance
Businesses involved in carpet cleaning spend between $500 and $1500 on the insurance that covers up to $1 million.
Numerous factors will set the final price you pay, and these include:
· The area you live in
· What expenses can be deducted
· How many employees you have
· The per-occurrence limit
· The general aggregate limit
Sometimes you can get the insurance at a much lower price if you purchase it as part of a BOP. This is a business owner's policy and should work to help maximize your income. It provides you with more options. These include interruptions to business and insurance for premises that you own.
Hope you found this information useful when it comes to insurance that is needed for carpet cleaners. In addition, make sure to include this information within your business plan for the carpet cleaning company, similar to including your nbusiness name.