Jan 02, 2024How to Reduce Your Janitorial Company’s Ex-Mod
Why General Package Forms Don’t Work for Cleaning & Maintenance Companies
Like any operation, running a cleaning and maintenance company comes with its own unique set of risks and liabilities. From handling chemicals to moving heavy equipment, cleaning public spaces to working on clients’ premises, a maintenance company is faced with liabilities on multiple levels.
That’s why it’s important for owners of these businesses to be educated and aware of how important it is to have a Janitorial & Carpet Cleaning Insurance program in place to protect against everything from slips and falls to on-premises damage. Let’s look at some more risks and dive into how having maintenance insurance will help keep a company’s reputation intact.
Say one of your client’s cleaning and maintenance workers damages a client’s property, such as an art installation or hardwood floors, this can spell trouble for your company. If the wrong chemicals are used or a piece of equipment knocks into something, you could be sued for the replacement and repair cost.
Third-Party Bodily Injury
Slips and falls have been the bane of restaurants and grocery stores the world over for some time, but they can also be risks in the cleaning industry. Since these businesses involves using fluids to clean floors and hallways, for example, there is the possibility of an injury taking place.
If something breaks down that you need to use on a daily basis, you need to have coverage in place to provide the financials to replace or fix it. Don’t have insurance to do this? Then you could see a halt in your projects.
A big risk in the cleaning industry, chemicals pose dangerous threats when ingested, inhaled, etc. Improperly stored or utilized chemicals can lead to pollution as well as physical harm, both leading to expensive lawsuits.
All these risks and more in the maintenance industry, including injuries and illnesses to employees on the job, should be covered by an insurance plan. These businesses need to have financial protection that’s as wide-ranging as the liabilities their workers face daily. Companies should have property, general liability, commercial auto and workers’ compensation insurance at the ready.
Additionally, cleaning companies can invest in more specialize coverages like pollution coverage, supplemental property insurance coverage, which is designed for professionals in the industry, and janitorial bonding insurance. For this reason, standard policies and general package forms are not the answer for janitorial, carpet cleaning and maintenance businesses. Because these businesses face such a unique array of exposures, they will need an updated insurance plan that keeps with the trends of the industry and the risks that come with it.
About Tangram Insurance Services
Located across the Golden Gate Bridge, just outside of San Francisco, Tangram is a full-service Managing General Underwriter and Program Manager offering specialty programs. We focus on industry-relevant coverage, competitive pricing, and practical business and risk management solutions for your clients. Since we are not all things to all people, we make sure to create outstanding custom-built solutions that matter to those businesses, and the brokers who serve those industries. Contact us at (888) 744-9810.