I want to start a cleaning service. Do I need liability insurance?

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Asked July 2, 2013

1 Answer

Liability insurance is the type of coverage you need to pay for things that happen which may be your fault. This could be such things as someone tripping over your mop bucket and hurting themselves, or you bumping into an expensive item and sending it crashing to the floor. Without liability insurance, you would be responsible for paying for both situations out of pocket, and the costs could easily wreck a startup cleaning service.

Not only would liability insurance pay for the damages or injuries, it will also pay for your legal representation if someone takes you to court for a covered claim. Just the cost of an attorney alone could drag out into far more than you would pay for liability insurance for years, and if the case is found against you the settlement could amount to more than even a liability insurance policy by itself.

In many communities, you are required to carry liability insurance as a condition of getting a business license. This is to reduce fraudulent contractors and protect consumers. For the contractor, having liability insurance is cheaper than trying to sort out liability claims made personally. They can pay the deductible on a claim and allow their insurance policy to handle the rest of the claim.

If your business has a lot invested, you may want to consider adding an umbrella liability policy to your insurance portfolio along with your other business coverages. An umbrella policy can be used to extend your liability coverage across all of your liability insurance plans. If you are operating a sole proprietorship from home, then the policy would extend your home insurance and car insurance liability coverages if you are involved in an incident that exceeds the existing policy limits. Think of an umbrella policy as a backup for your other liability insurance plans.

Answered July 2, 2013 by Anonymous

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