Keeping Your Claims History Clean
Risk Management Guide for Janitorial, Maid, & Cleaning Services

Chapter 2: Understanding Cleaning and Janitorial Insurance Policies
Part 2: Small Business Insurance Basics
Workers' Compensation Insurance

If you are a one-person operation, you aren't legally obligated to carry Workers' Compensation Insurance. But as soon as you start hiring help, know that most states require employers to carry the coverage.

Workers' Comp pays for your employees' occupational injuries and illnesses. Say that one of your janitors slips while stripping a floor and breaks an ankle. Because the injury happened on the job, you are liable for it. Luckily, the accident can be covered by your Workers' Compensation Insurance plan.

When it comes to Workers' Comp, most policies cover…

  • Medical costs when an employee is injured on the job.
  • Foregone wages while the injured employee recovers.
  • Disability and dependent payments if an occupational injury disables or kills an employee.
  • Funeral costs if the employee dies from an injury related to their work tasks.
  • Legal fees if your policy contains Employer's Liability Insurance, which pays for Workers' Comp lawsuits.

If you are an independent contractor or your cleaning business only hires independent contractors, most states require the contractor to provide their own coverage. However, you are not allowed to misclassify a worker in order to dodge an insurance obligation. Doing so may result in fines and criminal charges.

To learn more about your state's requirements, check out our guide, Workers' Compensation Laws by State.

Next: Chapter 2.2.D: Health Insurance

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