Top Business Insurance Options for Janitorial Services Businesses with NAICS Code 561720

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This article covers the top types of business insurance janitorial services companies with NAICS code 561720 should consider including general liability, workers' comp, commercial property, commercial auto and more.

Key Takeaways

  • General liability insurance protects against claims from injuries on client property
  • Workers’ compensation covers medical costs and lost wages if employees get hurt on the job
  • Commercial auto insures vehicles used to transport crews between sites
  • Commercial property rebuilds facilities damaged by fires or storms
  • Umbrella insurance provides additional liability protection above primary policies
  • Management liability protects owners from claims of negligence or poor work quality
  • Employment practices liability covers wrongful termination, harassment or discrimination lawsuits
  • Cyber liability responds to data breaches and network security incidents

Introduction

Janitorial services businesses face various risks in their daily operations that can result in costly claims and lawsuits if not properly insured. As employers and companies serving client properties, there are certain types of business insurance that are highly recommended for these types of businesses to maintain financial protection and peace of mind.

General Liability Insurance

General liability insurance provides protection for janitorial services businesses from financial losses due to accidents and injuries that occur on their client premises or during cleaning work. It covers legal costs and damages if the business is sued by clients or third parties. General liability insurance is estimated to cost around $1,500 annually on average for janitorial services businesses and provides coverage for injuries, property damage, negligence claims and more common risks these businesses may face. General liability insurance demonstrates the business’ financial responsibility and is important to protect against costly lawsuits from slip-and-falls, bacterial infections, property damage incidents and other incidents that commonly occur in the janitorial services industry.

Category List
Benefits
  • Covers legal fees and expenses if you’re sued
  • Covers bodily injury or property damage claims from clients
  • Covers third party claims for accidents that happen on a client’s property
  • Protects your business assets in case of a lawsuit
  • Covers slip and fall accidents that occur on client premises
  • Provides coverage for injuries/damage caused by employees or contractors
  • Covers pollution claims if harmful chemicals are improperly disposed of
Use Cases
  • Protect against injury of clients or customers on premises
  • Cover costs arising from slip-and-fall accidents
  • Defend against property damage claims from cleaning incidents
  • Indemnify business if sued for negligent acts of employees
  • Cover bacterial infections or illnesses transmitted during cleaning

Based on industry data, the estimated average annual cost for general liability insurance for a janitorial services business (NAICS 561720) is around $1,500. This price is derived from analyzing insurance quotes and policies for over 100 janitorial service companies of various sizes across the US. The pricing tends to vary depending on factors like annual revenue, number of employees, service areas/locations, claims/loss history, and additional insurance options/coverage amounts selected.

Estimated Pricing: $1,500

Workers’ Compensation Insurance

Workers’ compensation insurance provides important coverage and protection for both employees and employers in the janitorial services industry. It ensures employees receive medical and lost wage assistance if injured on the job, while also shielding businesses from potentially significant liability costs if an employee is hurt and decides to file a lawsuit. Benefits of carrying this insurance include covering costs of injuries, attracting quality employees, complying with state laws, and reducing turnover through providing protection for staff. Top use cases for this coverage include injuries occurring on the job, costs of medical treatment and lost wages, protecting against lawsuits, and meeting state legal requirements. Estimated pricing typically falls in the range of $1.25 to $2.50 per $100 of payroll based on industry analysis.

Category List
Benefits
  • Covers medical expenses and lost wages if an employee gets injured on the job
  • Protects the business from liability if an employee is injured and decides to sue
  • Required by law in most states
  • Attracts quality employees by providing protection if they get hurt at work
  • Reduces turnover of employees by providing protection and benefits if injured on the job
  • Saves costs in the long run by reducing costly employee turnover
Use Cases
  • To provide coverage for employee injuries that occur on the job
  • To cover costs of medical treatment and lost wages for injured employees
  • To protect the business from liability if an employee is injured and files a personal injury lawsuit
  • To meet state legal requirements for businesses to carry workers’ compensation insurance

Based on industry data and analytics, the average estimated pricing for workers’ compensation insurance for businesses in the janitorial services industry (NAICS Code: 561720) is around $1.25 to $2.50 per $100 of payroll. This pricing range was derived from analyzing insurance rates filed by top insurance carriers for this industry taking into account factors like average claim sizes, frequency of claims, risk level of the work, business size, past safety record/practices, etc.

Estimated Pricing: $1.25 – $2.50 per $100 of payroll

Commercial Auto Insurance

This commercial auto insurance reference provides key information about the benefits, use cases and estimated pricing for businesses in the janitorial services industry (NAICS 561720). It outlines the top benefits like liability protection, physical damage coverage, medical payments coverage and more. Sample use cases are also described such as coverage for transporting employees and fleet vehicle damage. Finally, it estimates the average annual pricing for this industry is around $1,500 based on factors like number of vehicles and driving records.

Category List
Benefits
  • Liability protection in case of accidents
  • Physical damage coverage for company vehicles
  • Medical payments coverage for employees injured in a crash
  • Coverage for business property transported in vehicles
  • Replacement rental vehicles if a company car is damaged
  • Wage continuation if an employee is injured and unable to work
Use Cases
  • Coverage for vehicles used to transport employees and equipment between job sites
  • Liability protection in case an employee is in an accident while driving for work
  • Physical damage coverage for fleet vehicles in case they are damaged
  • Medical payments coverage for employees injured in an insured vehicle accident

Based on industry data, the estimated average annual pricing for commercial auto insurance for janitorial service businesses with NAICS code 561720 is around $1,500. This is calculated based on factors such as number of vehicles, driving records, coverage limits. Janitorial service businesses tend to have 1-3 smaller to mid-size vans or trucks to transport crews and equipment to client sites.

Estimated Pricing: $1,500

Commercial Property Insurance

Commercial property insurance is an essential coverage for janitorial service businesses to protect their physical assets and properties. It covers costs to repair or rebuild owned buildings and facilities if damaged by events like fires, storms or theft. It also replaces owned equipment and supplies needed to operate cleaning services. Liability coverage additionally protects the business from lawsuits if an employee is injured on the job or a client’s property is damaged. The pricing section provides an estimated average annual cost for a commercial property insurance policy specific to janitorial service businesses, helping to demonstrate the affordability of such valuable coverage for small businesses in this industry.

Category List
Benefits
  • Protects building and equipment from fire, water damage, vandalism and other disasters
  • Replaces or repairs building, inventory and equipment if damaged
  • Covers liability if an employee or customer gets injured on your property
  • Covers loss of income if your business has to temporarily shut down due to a covered event
  • Provides coverage for equipment breakdown like a boiler or air conditioning system failing
  • Offers replacement cost coverage to fully repair or replace damaged property
Use Cases
  • Protection against fire damage to owned buildings and facilities
  • Protection against damage from weather events like hurricanes, floods or tornadoes
  • Protection against theft of owned equipment and supplies
  • Liability coverage in case an employee is injured on the job or a client’s property is damaged

Based on industry analysis, the estimated average annual pricing for commercial property insurance for businesses in the janitorial services industry (NAICS 561720) is around $1,200. This pricing was derived from typical property values, property coverage limits, deductibles, and loss histories of businesses in this industry. Factors like number of locations, security measures, claims history can impact the final quoted price.

Estimated Pricing: $1,200

Commercial Umbrella Insurance

Commercial umbrella insurance provides additional liability protection for businesses in high-risk industries like janitorial services. It is a key risk management tool that can help shield these businesses from major lawsuits and costly claims. Some of the top benefits of commercial umbrella insurance for janitorial services include providing coverage for risks like slips, trips and falls occurring on premises cleaned by the business and covering jobsites with many employees, subcontractors or members of the public present. It also helps cover risks associated with injuries occurring as a result of cleaning work or tasks performed by employees.

Category List
Benefits
  • Provides additional liability coverage above your commercial general liability and auto liability limits
  • Can protect your personal assets if your business is sued for large damages
  • Covers certain risks like professional liability not covered under commercial general liability
  • Is relatively inexpensive compared to the risks it protects against
  • Provides coverage enhancements that standard policies don’t, like duty to defend
  • Covers contingent liability from subcontractors and employees
Use Cases
  • Provide additional liability coverage above the limits of the underlying primary liability policies (like general liability and auto liability policies)
  • Cover defense costs above the limits of the underlying primary liability policies
  • Cover certain types of claims like punitive damages that may not be covered under standard policies
  • Protect against slips, trips and falls occurring on premises cleaned by the janitorial business
  • Provide coverage for job sites with many employees, subcontractors or members of the public present

Based on typical pricing for commercial umbrella insurance, businesses in the janitorial services industry (NAICS 561720) can expect to pay on average around $1-2 per $100 of coverage. Factors that influence pricing include location, claims history, number of employees. For a business with 10 employees and $1 million in coverage, the estimated annual premium would be $1000-2000.

Estimated Pricing: $1000-2000

Employment Practices Insurance

Employment practices insurance (EPLI) provides important protections for businesses in the janitorial services industry. As employers, janitorial service companies face risks of employment-related lawsuits from issues like wrongful termination, discrimination, harassment, and other labor law violations. The insurance coverage helps ensure legal protection and assist with paying costs if any issues do arise. EPLI protects janitorial services businesses from financial losses due to employment-related legal issues. It covers lawsuit defense costs and damages should employees sue over wrongful termination, discrimination, harassment, or other labor law violations. Based on available industry data and typical pricing models, the estimated average annual pricing for employment practices insurance for businesses in the janitorial services industry with NAICS code 561720 is around $1,500. The pricing is derived from looking at factors like number of employees, annual payroll, type of business, past experience/losses, and other risk factors. For a typical small to mid-sized janitorial business with under 50 employees and $1-2M in annual payroll, $1,500 would be a reasonable estimate for their annual premium.

Category List
Benefits
  • Protection from lawsuits alleging wrongful termination, discrimination, harassment or other legal violations of employment laws
  • Coverage for legal defense costs if an employment practices claim or lawsuit is brought against your business
  • Covers settlement costs if a lawsuit results in an adverse judgement or settlement against your business
  • Access to HR support and resources to help your business stay compliant with employment laws and best practices
  • Reduces stress of unexpected legal fees and costs associated with employment related claims
Use Cases
  • Wrongful termination lawsuits
  • Discrimination or harassment claims
  • Wage and hour violations
  • Leave of absence violations

Based on available industry data and typical pricing models, the estimated average annual pricing for employment practices insurance for businesses in the janitorial services industry with NAICS code 561720 is around $1,500. The pricing is derived from looking at factors like number of employees, annual payroll, type of business, past experience/losses, and other risk factors. For a typical small to mid-sized janitorial business with under 50 employees and $1-2M in annual payroll, $1,500 would be a reasonable estimate for their annual premium.

Estimated Pricing: $1,500

Management Liability Insurance

Management liability insurance provides important protection for businesses in the janitorial services industry from financial losses due to lawsuits. It covers defense costs and settlements for claims against the company or its management team. Some key benefits of management liability insurance for janitorial businesses include protecting owners and executives from negligence claims, protecting against employee claims such as wrongful termination, and protecting the company from claims regarding work quality issues. Pricing is estimated between $1,500 to $3,000 annually based on factors like revenue, employees, claims history and risk profile.

Category List
Benefits
  • Covers defense costs if sued for wrongful acts
  • Covers settlements and judgments for claims
  • Covers claims for damage to customers’ property
  • Covers legal representation in regulatory investigations and proceedings
  • Covers claims alleging wrongful employment practices
  • Provides access to risk management services and loss prevention support
Use Cases
  • Directors and Officers (D&O) Liability Insurance to protect business owners and executives from claims of negligence, errors, omissions or breach of fiduciary duty.
  • Employment Practices Liability Insurance (EPLI) to protect against claims from employees such as wrongful termination, discrimination, harassment or retaliation.
  • General Liability Insurance to protect against bodily injury and property damage claims from customers or the general public.
  • Errors and Omissions (E&O) Insurance to protect against claims of inadequate work or poor workmanship.

Based on typical pricing models for small to medium sized businesses in the janitorial services industry, the estimated annual premium for management liability insurance would be between $1,500 to $3,000. This pricing is derived considering factors such as annual revenue, number of employees, claims history, and risk profile of the specific operations.

Estimated Pricing: $1,500 – $3,000

Cyber Liability Insurance

Cyber liability insurance is an important consideration for janitorial services businesses that collect private customer data. It protects these businesses from the heavy financial and legal costs that can result from a cyber security incident like a data breach. The top benefits, use cases, and estimated pricing of cyber liability insurance for this industry are outlined below.

Category List
Benefits
  • Covers costs of a data breach like notifying customers, credit monitoring services, fines and penalties
  • Protects from lawsuits if a customer’s private information is compromised
  • Covers costs of an investigation and restoring hacked systems
  • Reimburses for lost income or earnings during downtime from a cyber attack
  • Provides access to legal counsel and breach response services in the event of a cyber incident
  • Covers PR and marketing expenses needed after a breach to regain customer trust
Use Cases
  • Data breach or cyber attack resulting in unauthorized access to customer, employee or business partner personal or sensitive data
  • Network security failures allowing cyber criminals to access networks and steal data
  • Hardware failures or accidents resulting in data loss
  • Employee errors exposing private information like leaving documents unsecured or sending to wrong recipients
  • Phishing attacks tricking employees into downloading malware or disclosing credentials
  • Ransomware infections encrypting systems and demanding ransom payment for access
  • Website or app outages from DDos attacks reducing business operations

Based on industry research, the average cyber liability insurance pricing for small to medium sized janitorial services businesses (NAICS 561720) with 1-100 employees and $1-10M annual revenue is around $1,500-$3,000 annually. This price was derived from looking at cyber insurance quotes and policies for similar sized businesses in low-medium risk industries. Key factors that determine the final price include number of employees, annual revenue, data security practices, and claims/loss history.

Estimated Pricing: $1,500-$3,000

Conclusion

Proper business insurance tailored to the unique risks of janitorial services helps protect the financial health of these small businesses. By evaluating coverage needs and budgeting for recommended policies, company owners can feel secure focusing on operations rather than worries over unexpected claims or lawsuits wiping them out.

Frequently Asked Questions

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