Here's something most cleaning business owners don't realize until it's too late: your personal auto insurance won't cover you if you get into an accident while driving to a client's office or hauling vacuum cleaners and cleaning supplies. The moment you use your vehicle for business purposes, you've created a coverage gap that could leave you personally liable for thousands—or even hundreds of thousands—of dollars in damages.
Whether you're running a small residential cleaning operation or managing a commercial janitorial company with multiple crews, understanding commercial auto insurance isn't optional—it's essential. And if you have employees driving their own cars between jobs? There's a specific type of coverage for that too. Let's break down exactly what you need to know.
Why Personal Auto Insurance Doesn't Cut It
Your personal auto policy has a little clause that most people skip right over: the business use exclusion. This means if you're driving to clean someone's house and you rear-end another car, your insurance company can deny your claim entirely. They'll argue that you were engaged in business activities, and your personal policy doesn't cover that.
Commercial auto insurance is designed specifically for vehicles used in business operations. It covers liability for injuries and property damage you cause to others, plus damage to your own vehicle depending on the coverage options you choose. For cleaning businesses, this typically includes any car, van, or truck you use to transport equipment, supplies, or employees to job sites.
The average commercial auto policy for a cleaning business runs between $150-$300 per month, which translates to about $1,800-$3,600 annually. That might seem steep compared to personal auto insurance, but consider the alternative: a single serious accident could put you out of business entirely if you're not properly covered.
The Hired and Non-Owned Auto Coverage You're Probably Missing
Here's where it gets tricky. Let's say you don't own a company vehicle—you just drive your personal car. Or maybe you have employees who use their own vehicles to get from one cleaning job to another. You might think their personal auto insurance covers them. It probably doesn't, at least not for business use.
This is where hired and non-owned auto insurance (HNOA) comes in. This coverage protects your business when you or your employees use vehicles that your company doesn't own—whether that's a personal car, a rental vehicle, or a leased van. HNOA covers liability for injuries and property damage to third parties, but it doesn't cover damage to the actual vehicle being driven.
The good news is HNOA is relatively affordable and can usually be added as an endorsement to your general liability policy rather than purchased as a standalone policy. Even better, it's often bundled into a business owner's policy (BOP) if you're purchasing comprehensive coverage for your cleaning business.
Think of it this way: if your employee is driving their Honda Civic between cleaning jobs and causes an accident that injures someone, that person could sue your business—not just your employee. HNOA protects your company from that lawsuit. Without it, you're exposed to potentially devastating financial liability.
How Much Coverage Do You Actually Need?
This is where cleaning business owners often underinsure themselves. The minimum legal requirements in your state are almost never enough. Most states require only $25,000-$50,000 in liability coverage, but a serious accident can easily exceed that in medical bills alone—never mind property damage or lost wages.
For cleaning businesses operating in low-risk areas with just one or two vehicles, a $500,000 combined single limit is the absolute minimum you should consider. But if you operate multiple vehicles, work in high-traffic urban areas, or serve commercial clients, $1 million in liability coverage is the safer choice. Many commercial property managers and office building contracts actually require you to carry $1 million or more before they'll hire you.
Keep in mind that commercial auto insurance isn't just about liability. You'll also want to consider collision coverage (pays to repair your vehicle if you cause an accident), comprehensive coverage (protects against theft, vandalism, and weather damage), and uninsured/underinsured motorist coverage (protects you if someone without adequate insurance hits you).
What Actually Gets Covered (and What Doesn't)
Commercial auto insurance covers accidents that happen while you're using your vehicle for business purposes. That includes driving to and from job sites, transporting cleaning equipment and supplies, picking up employees, or running business errands. If you cause an accident, your policy will cover the other person's medical bills, vehicle repairs, and legal costs if they sue you.
However, there are important limitations. HNOA coverage, for example, only covers liability—it won't pay to fix your employee's car if they crash it. That's still covered by their personal auto insurance (assuming they have collision coverage). Your commercial auto policy also won't cover your cleaning equipment if it's damaged in an accident; you'll need inland marine coverage or a business property policy for that.
Another thing to watch out for: your policy likely won't cover intentional acts, criminal activity, or damage that occurs while the vehicle is being used for something outside the scope of your business. If your employee takes the company van for a personal road trip and gets into an accident, you might not be covered.
How to Get the Right Coverage for Your Cleaning Business
Start by taking inventory of how vehicles are actually used in your business. Do you own company vehicles? How many employees drive their personal cars between jobs? Do you ever rent vehicles for bigger jobs or special events? The answers to these questions will determine whether you need just commercial auto insurance, just HNOA, or both.
Next, look for opportunities to bundle. Many insurance companies—like Progressive Commercial and The Hartford—offer package policies that combine commercial auto with general liability and other coverages cleaning businesses need. Bundling can save you 10-25% compared to buying policies separately, plus it simplifies your coverage by giving you one insurer to deal with instead of multiple.
When comparing quotes, don't just look at the premium—look at the coverage limits, deductibles, and exclusions. A cheaper policy with a $2,500 deductible and $300,000 in liability coverage might actually cost you more in the long run than a slightly more expensive policy with a $500 deductible and $1 million in coverage.
Finally, review your policy annually. As your business grows and you add more vehicles or employees, your insurance needs will change. What was adequate coverage when you started might leave you dangerously underinsured a few years down the road. Set a reminder to review your policy every 12 months, or whenever you make significant changes to your operations.
Getting the right commercial auto coverage doesn't have to be complicated. Talk to an insurance agent who specializes in small business coverage, be honest about how you use vehicles in your cleaning business, and make sure you're carrying enough liability coverage to protect your company if the worst happens. It's one of those things you'll be grateful you have if you ever need it—and you'll sleep better at night knowing you're properly protected.
