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    3 Replies Latest reply on Jun 18, 2010 1:09 PM by cutcomp


    mcreamer Newbie
      What kind of insurance do I need for an office cleaning business? It is just me and my daughters right now, but am hoping to expand. I operate from home and intend to continue to do so.
        • Re: Insurance
          AssetRegistry Wayfarer
          I suggest you consider getting a "dishonesty bond" in addition to insurance. People are more likely to deal with you if you are bonded versus someone who is not. I think you may only need general liability insurance...
          • Re: Insurance
            cutcomp Wayfarer
            In addition to being bonded and having General Liability, you may well need to get Workers Compensation insurance. This can be a tricky question for smaller businesses, as in many states a sole proprietor or partnership is not required by law to get WC coverage for the proprietor himself/herself or on the partners (just on any employees you may have.) But many of your customers may require you to have Workers Comp insurance before they hire you, as in most states an uninsured subcontractor gets treated the same as an employee for Workers Comp purposes.

            This means that even though your state might not require you to insure yourself for WC, the moment you start to work for someone else they get WC liability for you while you are doing work for them, and they will likely be charged premiums by their insurance company for you. To avoid those charges, many companies insist that all independent contractors show evidence of having their own Workers Comp.

            But you need to check your particular state's rules on this, as a few states have enacted some statutes that allow independent contractors to truly opt out of the system and thus the companies that hire them would not acquire the WC liability (as long as the proper opt out procedures are followed.)

            If it's any help, we have an online guide to Workers Compensation insurance, at that might be of some assistance.