What insurance should a cleaning company carry when I buy it?

A cleaning company’s crews work inside clients’ buildings, often after hours, with keys and alarm codes, and use chemicals near floors and furniture. That is why insurance deserves its own section in your review. You are looking for what the company carries now, what its clients demand and what has already gone wrong.

Damage in clients’ premises

Start with liability cover for damage or injury caused on a client’s site, such as a stained carpet, a damaged floor or a visitor who slips on a wet surface. Ask for the policy documents, not a summary. Read what the policy excludes and whether it covers work done by subcontracted crews. An insurance broker can explain the wording and tell you what the policy would respond to.

Keys, access cards and theft claims

Lost keys and access cards can mean changing locks across several sites. A client may also accuse a crew member of taking something. Ask whether the company carries cover for those events, which your insurance broker can name for you, and how the company screens and supervises staff. Ask for any claims or complaints of this kind, and how the seller handled them.

Vehicles, equipment and what clients require

Check how the company’s vehicles and equipment are insured and in whose name. Then read the client contracts. Many commercial clients ask for a certificate of insurance and may end the contract if cover lapses. Compare each requirement with the policies in place, so you do not find a gap on your first day.

Claims history and cover at takeover

Ask for the claims history and the reasons for any changes in insurers. A series of similar claims tells you where the work goes wrong. Timing matters too, since the seller’s policies may not follow the business to you. Read do I need new insurance the moment I take over a business and talk to your broker well before closing.