TUESDAY, DECEMBER 15, 2020
Imagine a homeowner hires a professional cleaning business to clean her home from top to bottom. Working to get the home spic and span, an employee carelessly and severely damages the home’s hardwood flooring. The homeowner, expecting the business to pay for the damage, is disappointed to learn that the business doesn’t have liability insurance to cover the cost. So, what happens next? Does the homeowner simply accept the damaged floor? Does she personally absorb the repair costs? Or does she seek legal action against the cleaning business and/or its owner? If it were your home, what would you do? Scenarios like this illustrate the importance of having adequate insurance to protect both the business owner and customer. Such scenarios lead many customers to require proof of insurance when deciding which cleaning service to hire. Providing Proof of Insurance When requesting proof of insurance, most customers ask for a Certificate of Insurance (COI). A COI lists key information about the business’s liability insurance coverage and may also include information about other insurance policies the business holds, such as workers compensation or auto insurance. A COI is easily provided upon request from your Trusted Choice® Independent Insurance Agent. In some cases, a customer may request more information than is typically provided on a COI. For example, some customers may want proof of higher limits of insurance or other specific information about your policy’s coverage to be included on the COI—all of which Your Trusted Choice® Independent Insurance Agent can help you to understand and address. Be prepared for any scenario. Even if a prospective customer does not specifically ask for a COI, make it a best practice to provide one to them anyway. Transparency upfront can create a competitive advantage for your business while also putting a customer’s mind at ease about entrusting their property to your business. Adding Other Parties to Your Insurance Policy Other clients may require your business to make specific modifications to cover other parties under your business liability insurance policy. These types of modifications protect other parties that, should your actions cause injury to someone or damage someone’s property, may also be responsible. For instance, a landlord may hire your business to clean rental homes, a building owner may contract your services to clean business properties, or a property management company employ you to clean spec houses. Each of these parties may require that they be added to your insurance policy as an “additional insured,” which is as simple as adding an endorsement to your insurance policy. Your Trusted Choice® Independent Insurance Agent can often help you meet such a requirement. Managing the Growing Pains Contracts. Liability. Insurance. These three words often strike fear in the hearts of cleaning business owners, who prefer to focus on what they do well. In truth, the confusion (and pain) surrounding contractual requirements and subsequent liability and insurance issues will only grow stronger as your business grows. To help make sense of your business’s growing pains, call your Trusted Choice® Independent Insurance Agent today.
Posted 5:07 PM