Cleaning Service Insurance Requirements: Complete Guide (2026)

Quick Answer: Is Insurance Required for Cleaning Services?

Most states don't legally require cleaning service insurance, but you'll need it to operate successfully. Commercial clients, property managers, and homeowners increasingly demand proof of insurance before hiring cleaning services.

While you won't face state penalties for operating without insurance, you'll face serious business and financial risks—including personal liability for accidents, property damage, and lawsuits.

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Cleaning Service Insurance Requirements at a Glance

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What Insurance Do Cleaning Services Actually Need?

While states don't mandate insurance for cleaning businesses, these coverages are essential for operations:

1. General Liability Insurance (Essential)

What It Covers:

• Property damage you cause while cleaning (broken items, spills, scratches)
• Bodily injury to clients or their visitors
• Damage from cleaning chemicals or products
• Legal defense costs if sued
• Medical payments for minor injuries

Typical Coverage Limits:

• Recommended: $1,000,000 per occurrence / $2,000,000 aggregate
• Minimum acceptable: $500,000 per occurrence
• Commercial clients often require $1-2 million minimum

Average Cost:

• Residential cleaning: $500-1,200/year
• Commercial cleaning: $1,000-3,000/year
• Janitorial services: $1,500-4,000/year

Real-World Example: Your employee accidentally knocks over and breaks a client's $15,000 glass sculpture while dusting. General liability covers the replacement cost and any legal expenses if the client sues.

2. Workers' Compensation Insurance (Legally Required)

When It's Required:

• Required in all states if you have even one employee
• Some states (like Florida, Georgia) require it for just 1 employee
• Sole proprietors without employees typically exempt

What It Covers:

• Employee medical expenses for work injuries
• Lost wages during recovery
• Disability benefits for permanent injuries
• Death benefits to families
• Legal protection if employee sues

Average Cost:

• Cleaning services: $0.80-2.50 per $100 of payroll
• Example: $30,000 annual payroll = $240-750/year premium
• Costs vary significantly by state

Penalties for Non-Compliance:

• Fines: $1,000-10,000+ per employee
• Criminal charges in some states
• Stop-work orders
• Personal liability for all medical costs

3. Bonding (Required by Some Contracts)

What Bonding Is:

• A surety bond guarantees you'll fulfill contract obligations
• Protects clients against theft by your employees
• Different from insurance (it's a financial guarantee)

Types of Bonds:

Janitorial/Cleaning Bond:

• Covers client property theft by employees
• Typical amounts: $5,000-50,000
• Cost: 1-5% of bond amount annually
• Example: $10,000 bond = $100-500/year

Dishonesty Bond:

• Protects against employee theft and dishonesty
• Required by many commercial contracts
• Often part of larger insurance packages

State Licensing Bonds:

• Required in some states for business license
• California, Florida, Maryland require bonds for certain services
• Amounts vary: $1,000-25,000

4. Commercial Auto Insurance (If Using Vehicles)

When Required:

• Using company-owned vehicles for cleaning jobs
• Employees driving to job sites
• Transporting cleaning equipment and supplies

Coverage Needed:

• Commercial auto liability (higher limits than personal)
• Hired and non-owned auto liability (if employees use personal cars)
• Cargo coverage for equipment

Average Cost:

• Commercial van: $1,200-2,500/year
• Hired/non-owned auto: $300-800/year

5. Professional Liability (E&O) - Optional

What It Covers:

• Allegations of negligent work
• Failure to clean properly
• Missed spots or incomplete service
• Damage from improper cleaning methods

When Needed:

• Specialty cleaning (medical facilities, laboratories)
• High-value commercial contracts
• Post-construction cleaning

Average Cost: $500-1,500/year

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State-Specific Bonding and Licensing Requirements

While insurance isn't typically mandated, some states have specific requirements:

States Requiring Bonds or Licenses

California:

• Janitorial services require business license
• Some cities require bonds ($5,000-25,000)
• Workers' comp required for 1+ employees

Florida:

• Residential cleaning services generally don't need license
• Commercial janitorial may need local business tax receipt
• Workers' comp required for 4+ employees (or 1+ in construction cleaning)

Maryland:

• Some counties require cleaning service registration
• Baltimore County requires $5,000 bond for commercial cleaning
• Workers' comp required for 1+ employees

Nevada:

• Janitorial services require business license
• Bond may be required depending on county
• Workers' comp required for 1+ employees

Texas:

• No state license required for general cleaning
• Individual cities may require permits
• Workers' comp optional but recommended

Always check local requirements: Counties and cities often have additional bonding and licensing requirements beyond state law.

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Client and Contract Requirements

Even if your state doesn't require insurance, your clients will:

Commercial Client Requirements

Office Buildings and Property Managers:

• Minimum $1 million general liability
• $2 million aggregate common
• Workers' compensation certificate
• Certificate of insurance (COI) before first job
• Additional insured endorsement (adding them to your policy)

Medical Facilities:

• $2-5 million liability coverage
• Professional liability/E&O
• Strict bonding requirements
• Background checks on all employees
• Specialized training and certification

Schools and Government Buildings:

• $1-2 million liability minimum
• Bonding: $10,000-100,000+
• Workers' comp required
• Often require prevailing wage compliance

Retail Chains and Franchises:

• $2 million liability typical
• Stringent vetting process
• Additional insured status
• Auto liability if driving to locations

Residential Client Expectations

High-Value Homes:

• $1 million liability increasingly standard
• Background-checked employees
• Bonding for peace of mind

Regular Homeowners:

• Many now ask for proof of insurance
• Protects both you and the homeowner
• Demonstrates professionalism

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What Happens If You Operate Without Insurance?

Scenario 1: Property Damage

You're cleaning a client's home office. Your employee accidentally knocks a laptop off the desk, destroying it and losing critical business data.

With insurance: General liability pays $3,000 for laptop replacement + legal fees if client sues for data loss.

Without insurance: You pay $3,000 out of pocket + potentially tens of thousands in legal fees and data loss damages.

Scenario 2: Injury on the Job

Your employee slips on a wet floor while mopping and breaks their wrist, requiring surgery.

With workers' comp: Insurance pays all medical bills ($15,000), lost wages during recovery ($4,000), and protects you from lawsuit.

Without workers' comp: You're personally liable for all medical costs, lost wages, potential lawsuit, and state fines ($5,000-50,000+).

Scenario 3: Client Property Theft

A client accuses your employee of stealing jewelry worth $8,000.

With bonding: Bond covers the theft claim, protecting your business reputation.

Without bonding: You must prove innocence, potentially face lawsuit, lose client and referrals, damage business reputation.

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How Much Does Cleaning Service Insurance Cost?

Costs vary based on business type, size, location, and coverage limits:

Residential Cleaning Service

Commercial Janitorial Service

Factors That Affect Cost

• Number of employees (more employees = higher workers' comp)
• Annual revenue (higher revenue = higher premiums)
• Services offered (specialty cleaning costs more)
• Claims history (prior claims increase rates)
• Location (urban areas cost more)
• Coverage limits (higher limits = higher cost)

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How to Get Cleaning Service Insurance

Step 1: Assess Your Needs

Questions to answer:

• Do you have employees? (determines workers' comp requirement)
• Are you doing residential or commercial work?
• What are your largest contracts requiring?
• What's your annual revenue?
• Do you use company vehicles?

Step 2: Shop for Quotes

Specialized Cleaning Insurance Providers:

• Next Insurance (online, instant quotes)
• Hiscox (small business specialist)
• The Hartford (commercial focus)
• Insureon (comparison platform)
• Thimble (flexible, on-demand coverage)

Traditional Carriers:

• Progressive Commercial
• State Farm Business
• Nationwide Business
• Travelers Business Insurance

Business Package Policies (BOP):

• Combine general liability + property insurance
• Often more cost-effective than separate policies
• Typical cost: $500-2,000/year

Step 3: Get Required Certificates

Certificate of Insurance (COI):

• Free from your insurer once you buy policy
• Required by most commercial clients
• Shows coverage types, limits, effective dates
• Can add clients as "additional insured"

Workers' Compensation Certificate:

• Separate certificate showing employee coverage
• Required by law in most states
• Must be posted at business location

Step 4: Maintain Continuous Coverage

• Never let policies lapse (clients verify coverage regularly)
• Renew before expiration dates
• Update coverage as business grows
• Inform clients of any policy changes

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Frequently Asked Questions

Do I need insurance to start a cleaning business?

There's no state law requiring insurance to start a cleaning business in most states. However, you'll need insurance to get clients, especially commercial ones. Most property managers and businesses won't hire uninsured cleaners due to liability risks.

How much liability insurance do cleaning services need?

For residential cleaning, $500,000-1,000,000 is typical. For commercial cleaning, most clients require $1-2 million in general liability coverage. High-value commercial contracts may demand $5 million or more.

Do I need workers' compensation if I'm the only employee?

In most states, sole proprietors without employees are exempt from workers' comp requirements. However, once you hire even one employee, workers' comp becomes legally required in all states.

What's the difference between bonding and insurance?

Insurance protects your business from losses (property damage, injuries). Bonding protects your clients from losses (theft, incomplete work). Many clients require both—insurance for accidents and bonding for dishonesty.

Can I get cleaning insurance without a business license?

Yes, most insurers don't require a business license to issue coverage. However, you should check if your state or city requires a license to operate a cleaning business legally.

Does my homeowner's insurance cover my cleaning business?

No. Homeowner's policies explicitly exclude business activities. If you're operating a cleaning business out of your home, you need commercial general liability insurance.

How do I add a client as an additional insured?

Contact your insurance agent and request an additional insured endorsement for the specific client. This adds them to your policy so they're covered if they're sued due to your cleaning work. There's usually a small fee ($25-100 per certificate).

What if I only clean a few houses part-time?

Even part-time cleaners need insurance. One accident can bankrupt your personal finances. Part-time coverage is available and costs less—typically $300-800/year for basic liability coverage.

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Key Takeaways

• States don't require insurance, but clients do—especially commercial accounts
• General liability ($1-2 million) is essential for all cleaning businesses
• Workers' comp is legally required if you have any employees
• Bonding protects against theft and is required by many contracts
• Commercial auto needed if using vehicles for business
• Cost: $500-5,000+/year depending on size and coverage
• Certificate of insurance required to bid on commercial contracts
• Without insurance, you're personally liable for all damages and injuries

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Important Disclaimer

This guide provides general information about insurance requirements for cleaning services based on publicly available sources and common industry practices. This is not legal or insurance advice. Requirements vary by state, county, and city.

Always verify current requirements with:

• Your state's Department of Labor (for workers' comp requirements)
• Your local business licensing office
• Your insurance professional
• Clients' specific insurance requirements in contracts

Consult with a licensed insurance professional for advice specific to your cleaning business.

Last verified: January 2026

Sources: State workers' compensation boards, business licensing departments, insurance industry guidelines, commercial contract standards