How much will it cost to insure my house cleaning business?
How much will it cost to insure and bond my house cleaning business? I have been running it solo for the last 6 months so I didn't to get bonded or anything, but I will be hiring 2-3 employees within the next month. How much can I expect the insurance and the bond to cost? And, for extra credit, what is the best type of insurance to get? I run it out of my home, if that makes a difference.
For insurance, you should shop your local insurance agents. Remember, insurance is there to protect you for property loss or against any liability claims.
For a bond, you are looking for a Janitorial Bond. It is a form of a fidelity bond and very similar to insurance. It protects your clients in the event an employee is arrested and convicted for stealing from them. You will not be expected to cover the loss. In fact, many clients will want to know that you are bonded before doing business with you.
The rates are based upon the number of employees and the amount of coverage. They range from a $5000 bond with less than 5 employees at $100 to a $100,000 with 25 employees less than $800.
These are instant issue bonds are are readily available on the internet. You can run a Google search for Janitorial Bond and find a site that has on line submissions. One of those sites processing on line applications is www.southcoastsurety.com.
You can get more information on this bond and a link to the application at http://www.southcoastsurety.com/fidelity-bonds.htm
Liability Insurance will run you about $1500 if you have less than $75,000 in gross sales. Workers Comp will run you a minimum of $1,000 or about 17% of payroll, whichever is HIGHER. Bonding, well, what's the POINT?? You're going to give a bond to each person who's house you go to? $500 per house. AND, you'll probably have to guarantee the bond amount yourself.
But a local, independent agent can get you quotes, and put stuff into place.
Personally, I think a bond is a waste of money. It's probably not going to cover what you think it covers. The workers comp is required by law – it's the ONLY coverage required by law. Calling them subs does NOT get you off the hook for having to provide benefits for them, even if you don't buy insurance.
References :
agent, 21+ years
Depending on your business yearly income. And it also depends on what insurance company you go with. You can get a free quote here http://www.insurancehelp101.com
First, make sure you incorporate your business. If not, your house, car, assets, (everything you own) can be taken if you are sued by a homeowner.
Second, if you are going to employ ANYONE in a house you MUST run a criminal background on the employee.
Third, get bonded.for about 1,500 to 2,000.
Fourth, Workers Comp may be applicable – check your state for statutory requirements. Some states require three employees, others four. It will depend specifically on your state's requirement.
Fifth, you may want to own company unowned auto insurance.
Best of luck- seems like things are going well in your business.
References :
For insurance, you should shop your local insurance agents. Remember, insurance is there to protect you for property loss or against any liability claims.
For a bond, you are looking for a Janitorial Bond. It is a form of a fidelity bond and very similar to insurance. It protects your clients in the event an employee is arrested and convicted for stealing from them. You will not be expected to cover the loss. In fact, many clients will want to know that you are bonded before doing business with you.
The rates are based upon the number of employees and the amount of coverage. They range from a $5000 bond with less than 5 employees at $100 to a $100,000 with 25 employees less than $800.
These are instant issue bonds are are readily available on the internet. You can run a Google search for Janitorial Bond and find a site that has on line submissions. One of those sites processing on line applications is http://www.southcoastsurety.com/fidelity-bonds.htm
References :