What Factors Impact the Insurance Cost for a Cleaning Business?
- Nate Jones, CPCU, ARM, CLCS, AU
- 2 days ago
- 2 min read
The cost of cleaning business insurance varies based on risk, operations, and business structure. Insurance companies evaluate several key elements when pricing coverage for house cleaning companies. Knowing these factors helps business owners plan better and avoid unnecessary expenses.
1. Business Size and Number of Employees
Insurance providers look at how large your cleaning business is, including:
Total number of employees
Payroll amount
Use of subcontractors
More employees increase exposure to workplace injuries, raising workers’ compensation and overall insurance costs.
The type of cleaning work performed directly affects insurance pricing. Higher-risk services usually cost more to insure, including:
Commercial or office cleaning
Post-construction cleanup
Industrial or specialty cleaning
Lower-risk residential cleaning typically results in lower premiums.
3. Claims History
Your past insurance claims strongly influence your current rates. Cleaning businesses with frequent or costly claims are seen as higher risk and often pay more for insurance.
Maintaining strong safety practices can help reduce future premiums.
4. Business Location
Where your cleaning business operates matters. Insurers consider:
Local crime and theft rates
State insurance regulations
Regional litigation trends
Businesses in high-risk areas may face higher insurance costs.
5. Vehicles and Equipment Used
If your cleaning business uses company vehicles or expensive equipment, insurers factor in:
Number of vehicles
Driving records of employees
Value of tools and machines
Commercial auto and equipment coverage increase premiums but are essential for protection.
6. Coverage Limits and Policy Choices
The amount of coverage you select plays a major role in pricing. Higher liability limits, additional endorsements, and lower deductibles generally raise insurance costs.
Choosing limits that match actual business risk helps control premiums.
Why Choose Wexford Insurance
Wexford Insurance specializes in cleaning business insurance and helps house cleaning companies manage costs by:
Identifying the exact factors driving pricing
Customizing coverage based on real risk
Avoiding unnecessary add-ons
Providing fast, accurate insurance quotes
Request a cleaning business insurance quote from Wexford Insurance and pay only for what your business truly needs.
