Chapter 4: Building a Risk Management Plan for Your Cleaning Business
Part 4: When Do You Need to Update Your Maid or Janitorial Insurance Policies?
By now, you probably have a good handle on the ways that insurance can benefit your business and safeguard its future. You have the tips to limit liability exposures while still offering exceptional service to your clients. And you know how to shop for the insurance policies that give you the peace of mind to run your business your way.
And as your cleaning services business grows, you may need to amend your insurance policies so they can continue to protect your business. Policies generally have a clause for "significant events" that allows you to amend coverage — even in the middle of the year.
Be sure you check in with your agent when your business experiences one of these significant events:
- More work. As your business grows and you serve more clients, you may face a higher chance of General Liability accidents. So if your workload increases, talk to your agent about whether or not your existing policy limits need to be adjusted.
- A change in premises. When you relocate your business, a couple of your policies need to be updated. Your General Liability Insurance and Property Insurance plans should both protect your new commercial address. Your Property policy should also include coverage for your new real estate's contents, fixtures, and furnishings. Remodeling your premises can indicate that you need to update your plan, too. If you expand your premises or purchase new equipment, those changes affect your Property coverage needs.
- Increases or decreases in revenue. Your insurance premiums are based on a number of factors, but the amount of revenue your business generates is one the most pertinent. You should always update your policies when your revenue drastically increases or decreases. When you pull in more revenue, you have more assets to protect, which means you need to raise your coverage limits. When your revenue decreases, you don't want to pay more for asset protection you no longer need.
- New employees. When your business is thriving, you might hire more help so you can meet the demand for your cleaning services. But with employees comes additional responsibilities. For example, most states require employers to carry Workers' Compensation Insurance if they have employees. You may also need to include members of your staff on your other policies if they regularly handle client property.
If you're unsure how a change may affect your business protection plan or you have any questions about small business insurance, talk to an insureon agent. We're happy to address your concerns and get your business set up for long-term success.
Next: Chapter 4.5: Why Starting and Stopping Coverage Is a Bad Idea
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