Risks Faced by Cleaning Businesses

Cleaning companies execute almost all of their work at customers'

premises. Employees usually travel to numerous job sites all through
their workday. Each job requires cleaning equipment and sanitizing
products to so workers must transport these items from site to site.
The nature of janitorial work creates risks that can generate claims.
Here are some of them:

 Damage to (or Theft of) Customers’ Property: While

working at the customer's premises, cleaning staff may cause
harm to your customer's building or personal property.

 Trip-and-Fall Injuries to Third Parties: Negligence by

cleaning personnel can lead to slip-and-fall accidents that
injure customers or other third parties.

 Damage to cleaning equipment: Company-owned janitorial

equipment such as like vacuum cleaners and pressure
washers might be damaged while in use, during transport, or
while in storage. Your business may incur both the cost of
repairs and the expense of renting replacement equipment to
use until the repairs are completed.

 On-the-Job Injuries Sustained by Employees: Janitorial

workers are prone to sprains, strains, and slip-and-fall
injuries. They may also be injured in auto accidents that occur
while they are traveling to or from a work site.

 Auto-Related Injuries or Property Damage to Third

Parties: Employees or company principals may cause auto
accidents that injure third parties or damage their property.
  Loss or Damage to Clients’ Keys: Workers may lose or
damage customers' keys.

 Pollution-Related Injuries or Damage: Cleaning businesses

may use harsh chemicals that can damage workers or third
parties or cause damage to customers' property if handled
improperly. Cleaning products may also contaminate land,
water or property at your premises or at a customer's
location if they spill or escape from a storage container.

 Advertising-Related Claims: Whether you use the Internet

or traditional media to promote your business, your company
faces various advertising-related risks. Property and Liability
Coverage

Small and mid-sized janitorial companies can obtain both general

liability and commercial property coverage by purchasing a business
owners policy (BOP). The property part covers your building and its
contents, including equipment stored inside.

The liability segment covers third-party claims against your business

for bodily injury, property damage, or personal and advertising
injury. A BOP can be customized by adding endorsements. Here are
some coverage enhancements to consider:

I. Property Coverages

 Equipment Floater: Covers your equipment while it's away

from your premises . This coverage is important since a
typical BOP affords only minimal coverage for personal
property away from your premises.
  Employee Theft Coverage: Covers theft of your property by
employees.

 Theft of Customers’ Property: Covers theft of clients'

property committed by your employees. This coverage may
be provided by an endorsement to employee theft coverage.

 Rental Reimbursement: Covers the cost of renting

equipment to use while your damaged equipment is being
repaired.

II. Liability Coverages

 Care, Custody or Control (CCC) Coverage: This coverage is

provided by modifying the care, custody or control
exclusion. It covers damage to customers' property that
occurs while you're working on it.

 Property Damage to Real Property: Covers accidental

damage to a building that occurs while you are working on it.
For example, an employee accidentally damages a customer's
wood floor while cleaning it.

 Lost Key Liability Coverage: Applies when the insured has

lost or damaged a customer's key. Covers the cost of re-
keying, adjusting or replacing the customer's lock.

 Limited Pollution Coverage: A standard liability policy

(including a BOP) excludes claims arising out of the release of
pollutants. This extension covers third-party bodily injury or
property damage caused by a short-term "pollution event, "
meaning a pollution release lasting less than 48 hours. Some
 endorsements limit coverage to "pollution events" that result
from certain perils.

 Automatic Additional Insured: When you sign contracts for

new jobs, customers may require you to insure them
as additional insureds under your liability policy. This
coverage will enable you to comply with such requirements
automatically.