Janitorial
Workers' Comp Coverage for Cleaning Businesses
Workers’ comp for janitorial services can be hard to find and expensive in many states. Fears related to COVID-19 claims have caused many insurance companies to retract or tighten their underwriting requirements. A lot of cleaning companies may end up paying higher workers’ comp rates in their State Insurance Fund. Many of our insurance partners are still pricing coverage aggressively due to our success within your industry.
We’ve been helping cleaning companies find easy and affordable coverage for over 15 years. Our experts understand the underwriting requirements from the insurance companies and we know how to negotiate the lowest rates on coverage. That’s why we’ve developed cleaning programs designed to help you get the best rates and most flexible payment options.
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Workers' Compensation for Cleaning Business
Employees are grouped into classification codes based on their job duties and work functions. The National Council on Compensation Insurance (NCCI) currently utilizes nearly 800 class codes to help insurance companies and agents categorize employees for rating purposes. Insurance companies set a base manual rate for each class code in order to begin pricing a policy.
Properly classifying workers is an important part of the quote process. Mis-classified employees can cost small businesses thousands of dollars. You could end up paying too much for coverage or owing more money after an annual audit.
Class Code 9014
Janitorial Services by Contractor
This class is applicable to businesses that provide janitorial services to others on a contract basis. This includes commercial cleaning and janitorial services. Services often include dusting, mopping, vacuuming, waxing, polishing floors, trash removal, sanitizing, and general cleaning duties. Minor maintenance may also be included when performed in conjunction with cleaning services including light bulb replacement and cleaning carpets.
Although their is a residential cleaning class code, cleaning companies that send crews to prepare residential properties for new tenants should also be included under code 9014.
Class Code 0917
Residential Cleaning Service
Residential cleaning services is applicable to businesses that provide residential cleaning services inside of a customer's residence. Cleaning services should be internal in nature and may include tasks such as dusting, mopping, vacuuming, and sanitizing. Typical workers would include house cleaners, cooks, laundry workers, maids, butlers, and nannies. This class code also includes pet-sitters providing services at teh customers' homes.
Class Code 9170
Janitorial Window Cleaning- Above Ground
This classification is used when a business does window cleaning above ground level. This class is similar in most aspects to class code 9014, however, it specifically includes the inside and outside cleaning of windows above ground. Payroll may be separated from class code 9014 as long as it is clearly documented. Otherwise all payroll will be rated under class code 9170.
Alternative State Class Codes for Cleaning Businesses:
Sometimes a state will deviate from the industry class code recommended by NCCI. Instead of the NCCI code, they may require the utilization of a state specific class code for certain business segments.
Synonyms: residential cleaning, housekeeping, maid service, house cleaners, cleaning company, janitorial service, floor waxing, window washing, mobile pressure washing, chimney cleaning, furnace cleaning, pest control, termite control, property preservation.
How Does Workers' Comp Work?
Workers' comp coverage protects employees when injured. It makes good financial sense for both parties.
- Loss of income for employees unable to perform job duties
- Medical expenses for employees injured on the job
- Retraining expenses for employees unable to return
- Permanent injury or disability for lasting injuries
- Survivor benefits if employees are killed on the job
Coverage does not protect employers from everything. Sometimes employees and employers can be negligent.
- Injuries resulting from a violation of the law
- Incidents resulting from employees' use fo drugs or alcohol
- Injuries that did not occur in connection with the job
- Clear company policy violations
- Injuries that did not occur in connection with the job
How Much Does Cleaning Insurance Cost?
The average rate our customers pay for workers’ compensation under the janitorial class code is around $2.50 per $100 of payroll. The average cost for a general liability insurance policy is about $575.00.
- Work Comp is priced based on payroll
- Your state and EMR Rating will affect your cost
- The type of janitorial work can modify rates
- Premium discounts and policy credits may apply
- GL rates are also based on payroll (rated per $1000)
- Gross revenue may affect pricing
- The type of services matters to underwriters
- Prior clams and years in business affect pricing
- SIC code 7349- Cleaning
How do I get started?
Here's what we need from you
- Business details, locations, FEIN or SSN
- Estimated annual payroll and job duties- class codes
- Claims info or loss history- if applicable
What Happens Next?
We go find for your best price
- Our software matches you with top-rated carriers
- Our agents apply and negotiate your lowest rates
- We present and recommend your best options