Writing Cleaning & Janitorial Services Accounts: What to Ask Before You Submit

Start with the Business Structure and Ownership

Before diving into the details of the client's operations, confirm the business structure and ownership. Is it a sole proprietorship, LLC, or corporation? Who owns the business, and are they involved in the day-to-day work? This determines whether you need to include the owner in the policy or exclude them.

Ask whether the owner is performing any cleaning tasks. If they are, an owner inclusion election might be necessary. Conversely, if the owner is not involved in physical labor, it may be appropriate to exclude them from coverage to avoid unnecessary exposure.

Also, ask about any subcontractors or employees. Do they use W-2 employees, or do they contract work out to 1099 workers or independent contractors? This affects your exposure basis, classification, and risk assessment.

Clarify the Scope of Work and Work Sites

Understand the exact services the client offers. Do they perform general cleaning, post-construction cleanup, industrial or commercial cleaning, or specialized services like mold remediation or biohazard cleanup? The scope of work impacts the risk profile and may influence the need for additional endorsements or coverage enhancements.

Ask for details about where the work is performed. Are they working in private homes, commercial offices, industrial sites, or healthcare facilities? The type of location affects the classification and potential hazards. For example, healthcare settings may have higher injury exposure due to the nature of the environment and the types of chemicals used.

Do they travel across multiple states or work primarily in one geographic area? This is important for determining which rating bureau will apply and whether the business operates in a monopolistic workers' comp state like Ohio, Washington, or Wyoming, where private carriers cannot write the coverage.

Understand Their Claims History and Risk Management

Ask whether the business has a history of workers' compensation claims. A high number of past claims can signal a higher risk profile, which affects carrier appetite and pricing. Also, find out if they have any ongoing investigations or unresolved claims. These can delay placement or lead to higher premiums.

Ask about the client's risk management practices. Do they train employees on safety protocols, use personal protective equipment, or follow OSHA standards? If not, this may indicate a lack of risk awareness and could lead to higher losses for the carrier. This is especially important for businesses using hazardous cleaning chemicals or operating in high-risk environments like hospitals or construction sites.

Request to see their incident logs or OSHA 300 logs if available. These can provide insight into the frequency and nature of injuries or near-misses. If the client is unable to provide these, it may signal poor recordkeeping or a lack of risk management discipline.

Determine the Size and Growth Plan of the Business

Ask about the number of employees and the expected growth over the next year. A rapidly expanding business with a growing workforce may require more coverage or a different exposure basis. Also, find out whether they plan to add new services or enter new markets. This can affect the classification and risk exposure, and may require additional lines of coverage.

Understand how many hours the employees work per week. Full-time versus part-time or seasonal workers can impact the exposure basis and the overall premium. If the business is planning to hire temporary or seasonal workers, this should be noted in the submission to avoid misclassification.

Ask whether they have any plans to contract out work to third parties. If so, it's important to determine whether these are W-2 or 1099 workers. This can affect your liability and the need for coverage extensions like subcontractor endorsements.

Evaluate the Client's Financial Health and Creditworthiness

Ask whether the business is financially stable. Do they have a consistent revenue stream, or are they starting up? A new or financially unstable business may be viewed as a higher risk by carriers. Also, find out whether they have any outstanding debts or liens. These can signal financial instability and affect carrier appetite.

Ask whether they have any outstanding insurance claims or unresolved policy issues with their current carrier. This can signal a pattern of behavior that may lead to future claims or disputes with the carrier.

Confirm Their Existing Coverage and Coverage Gaps

Ask whether the business currently has workers' compensation coverage and for how long. If they have a history with a carrier, this can be a positive signal. If they are switching carriers frequently, it may indicate dissatisfaction or a pattern of denied claims.

Ask whether they have any additional coverages, such as general liability or commercial auto insurance. These may be needed in conjunction with workers' comp to provide full protection. Also, ask whether they have any gaps in coverage, such as uncovered employees or excluded work sites.

Ask whether they have any endorsements or special coverages in place, such as owner inclusion, subcontractor endorsements, or coverage for temporary workers. These should be included in the submission to avoid misclassification and coverage gaps.

Document Everything and Use the Right Tools

Once you have gathered all the necessary information, document it thoroughly. This helps you make an accurate submission and provides a reference for future underwriting or claims questions. Use clear and concise language, and make sure all the key details are included in the submission package.

Use the right tools to streamline the submission process. On Cennairus, a single submission reaches several carriers and specialty markets; some are connected by API and others are worked by email or a program desk. ACORD forms and loss runs are read and structured automatically, making it easier to manage and service policies in one place. This helps agencies place cleaning and janitorial services accounts more efficiently and effectively.

By asking the right questions and gathering the necessary information upfront, agencies can improve their submission outcomes and better serve their clients. This is especially important in a competitive market where carrier appetite and pricing can vary widely based on risk factors and business practices.