You've got your business license, your cleaning supplies are stocked, and you're ready to land your first commercial contract. Then the property manager asks for your certificate of insurance—and you realize you're not entirely sure what coverage you actually need. If this sounds familiar, you're not alone. Insurance is one of those things new cleaning business owners put off until a client requires it, but here's the thing: waiting until someone asks can cost you contracts, and more importantly, it leaves you exposed to risks that could sink your business before it gets off the ground.
This guide walks you through exactly what insurance you need from day one, when to add coverage as you grow, and the mistakes that trip up most new cleaning business owners. Whether you're running a solo residential cleaning service or building a commercial janitorial company with employees, you'll know exactly what to buy, what it costs, and why it matters.
Day One Coverage: What You Need Before Your First Job
Even if you're a solo operator cleaning residential homes, you need general liability insurance from day one. This isn't optional—it's the foundation of your business protection. If you accidentally break a client's window, stain their hardwood floors with cleaning solution, or if a client slips on your wet bathroom floor and gets injured, general liability covers the damage and legal costs. Without it, you're personally on the hook for those expenses.
Most cleaning businesses pay around $48 per month or $580 per year for general liability insurance. About 89% of cleaning business owners choose a policy with $1 million per occurrence and $2 million aggregate limits—and that's exactly what most commercial clients require before they'll sign a contract with you. If you're targeting commercial work, you won't even get through the door without proof of this coverage.
If you're using your personal vehicle to drive to cleaning jobs, you also need commercial auto insurance from the start. Your personal auto policy won't cover accidents that happen while you're driving for business purposes. A single accident could leave you paying out of pocket for vehicle damage, medical bills, and legal fees. Commercial auto policies for cleaning businesses typically add another $100 to $150 per month to your insurance budget.
When to Add Coverage: Growth Triggers You Can't Ignore
The moment you hire your first employee, workers' compensation insurance becomes legally required in almost every state. This is non-negotiable. Workers' comp covers medical costs and lost wages if an employee gets hurt on the job—whether it's a slip and fall, a chemical exposure, or a repetitive strain injury from vacuuming all day. The exact threshold varies dramatically by state. In New York, you need coverage the moment you hire even one part-time employee. In Florida, you can hire up to four people before it's required. Texas is the only state where workers' comp is optional, but skipping it is a massive risk you shouldn't take.
When you land your first commercial contract, clients will almost certainly require a janitorial bond. This is a type of fidelity bond that protects the client if one of your employees steals something while on their property. Coverage typically ranges from $5,000 to $50,000, and it costs just $8 to $20 per month. It's not legally required, but it's a practical requirement for doing business with offices, medical facilities, or any commercial property.
As your business grows and you start handling client data—appointment schedules, garage codes, alarm system access, payment information—you need cyber liability insurance. If that data gets hacked or leaked, clients can sue you for damages. This coverage protects you from risks tied to digital bookings, client databases, and online exposures. It's especially critical if you're using scheduling software or storing customer information electronically.
If you're cleaning high-end properties with custom finishes, rare artwork, or luxury furniture, you may need higher coverage limits than the standard $1 million per occurrence. Not all cleaning jobs carry the same risk exposure. A single accident in a luxury home could exceed your policy limits, leaving you personally liable for the difference. Talk to your insurance agent about increasing your limits if you're working in high-value properties.
Common Mistakes That Cost New Cleaning Businesses Money
The biggest mistake new cleaning business owners make is assuming general liability covers everything. It doesn't. General liability protects you from property damage and third-party injuries, but it doesn't cover your employees if they get hurt—that's what workers' comp is for. It doesn't cover employee theft—you need a janitorial bond for that. And it doesn't cover data breaches or cyber incidents—that requires cyber liability insurance. Thinking one policy handles all your risks leaves massive gaps in your coverage.
Another costly mistake is buying insurance just to land a contract, then canceling it after you get the job. Some business owners think they're being clever by saving money this way, but it's incredibly risky. If something happens while you're uninsured—a damaged floor, a chemical spill, an employee injury—you're personally liable for all the costs. And if your client finds out you canceled your policy, you'll likely lose the contract and damage your reputation.
Many new business owners also overlook equipment coverage. If your vacuum, carpet cleaner, floor buffer, or pressure washer gets stolen or damaged, you're out the replacement cost. Some general liability policies include limited equipment coverage, but you may need a separate inland marine or business property policy to fully protect your tools. Since cleaning businesses rely heavily on specialized equipment, this gap can seriously disrupt your operations if something happens.
Not understanding what tasks require specialized coverage is another common mistake. If you're doing post-construction cleanup, biohazard cleaning, or working in medical facilities, you're exposed to higher-risk scenarios. Cleaning dental offices exposes you to bloodborne pathogens and medical waste. Post-construction cleanup involves dust, debris, and potential chemical exposure. These situations may require pollution liability or specialized endorsements that standard cleaning policies don't include.
What It Actually Costs to Insure Your Cleaning Business
For a new cleaning business, you're looking at $320 to $675 per month in total insurance costs, or roughly $3,840 to $8,100 per year. That includes general liability, workers' compensation (if you have employees), commercial auto, equipment coverage, and bonding. About 53% of cleaning businesses pay less than $50 per month just for general liability, and 86% pay less than $100 per month for that coverage alone.
Your actual costs depend on several factors: your location (New York averages $155 per month for general liability while Alaska averages $114), how often you interact with customers, your annual revenue, and what types of properties you clean. Medical facilities and construction sites carry much higher liability exposure than standard office buildings, which affects your premiums. The more employees you have, the higher your workers' comp costs will be.
How to Get Started and Protect Your Business
Start by getting quotes from at least three insurance providers that specialize in cleaning businesses. Not all insurers understand the unique risks cleaning companies face, so working with providers who know the industry will get you better coverage at competitive rates. Make sure you're comparing the same coverage limits—a cheap policy with low limits isn't actually saving you money if it doesn't meet client requirements or adequately protect you.
Before you sign any contracts, verify exactly what insurance your clients require. Most commercial clients will specify minimum coverage limits and may require you to name them as additional insured on your policy. Get this information upfront so you're not scrambling to upgrade your coverage after you've already committed to a contract.
Review your coverage annually as your business grows. What worked when you were a solo operator won't be adequate when you have five employees and commercial contracts. As your revenue increases, your property values increase, or you take on higher-risk cleaning jobs, you'll need to adjust your coverage limits accordingly. Insurance isn't something you buy once and forget about—it needs to evolve with your business.
