If you’re running a domestic house cleaning business, you’ll need to arrange insurance to protect yourself against the risks you’ll be facing and the unexpected losses that these risks can lead to.
Domestic house cleaning businesses range from small, one-person, home-based businesses to larger businesses operating from their own business premises. The cleaner’s insurance that you need will depend on what sort of business you’re running.
Property insurance covers your business property against losses due to accidental damage or theft. You can cover your business premises as well as its contents.
If you’re running a smaller business from home, you might think that you don’t need to insure your business property because you don’t have much to insure, but it’s worth adding up the value because it can be surprising to find out just how much your business property is worth when you include your office equipment such as the computer you use to manage your business admin.
Also, if you are running a home-based business bear in mind that your business property may not be covered by your household insurance.
Employer’s liability insurance
Employer’s liability insurance is a legal requirement if you employ anyone, even if you only employ them on a temporary or casual basis. There are heavy penalties if you are caught trading without it.
This type of insurance covers you if an employee claims compensation from you because they allege that something you did, or failed to do, resulted in them being injured.
As well as covering any compensation awarded, any associated costs and expenses – including the legal fees – are covered. Your insurer will help you handle any claims made against you so you won’t have to worry about dealing with legal issues.
Public liability insurance
Public liability insurance is similar to employer’s liability insurance, but it covers you if a member of the public rather than an employee claims compensation from you.
Unlike employer’s liability insurance, public liability insurance is not a legal requirement. However, some compensation claims for serious injuries can cost in excess of £250,000 to settle so it would be unwise to consider trading without it.
As an example, if you’ve failed to warn people that a floor could be slippery as you’ve just mopped it and someone slipped and fell, that person could claim compensation from you if they were injured. You would be legally liable because you’d failed to provide the warning, but your public liability insurer would defend the claim against you on your behalf and pay any compensation awarded against you.
A standard public liability insurance policy only covers compensation claims involving injuries or property damage, so you should ensure that you have a financial loss cover extension. This extends the cover so that compensation claims involving purely economic losses are also covered.
Legal expenses insurance
Legal expenses insurance covers your legal bills if you end up being involved in legal action. A wide range of different types of legal action are covered, including:
- Criminal charges
- Disputes with neighbours
- Contractual disputes with clients
- Tax/VAT inspections
- Employment tribunals
As well as covering your legal bills, your legal expenses insurer will be able to help you deal with any legal situations.
Personal accident & sickness insurance
If you’re unable to work because you’ve been injured or you’re ill, you’ll be unable to earn. Personal accident and sickness insurance covers your earnings if you find yourself in this situation, meaning that you’ll still be able to cover your bills.
A weekly benefit is paid if you are temporarily incapacitated. If you are permanently incapacitated, a lump sum is payable instead. A lump sum is also payable if you die, or in the event of certain specified injuries such as the loss or an eye or a limb.