Scrubbing Away the Coverage Gap for Small Janitorial Businesses
Being the owner of a small janitorial services company can be hard.
While the International Janitorial Cleaning Services Association claims that this is a $94.5 billion industry that employed 2,360,600 people in the U.S. in 2014, the smaller companies are not getting the biggest piece of that pie.
In the U.S., 765,000 small janitorial operations and 44,000 franchised outlets employ these people; however, the top 50 companies account for more than 30 percent of the industry’s revenue. What does this mean? It takes a lot more elbow grease for the small business owner to survive.
Our Janitorial Services product was created specifically for this group of small business owners. Many of these smaller janitorial companies assume their standard general liability policy includes coverage for property in their care, custody and control and are surprised to learn the standard general liability coverage form excludes it. With our product, coverage for this exposure can be purchased through our Property Damage Extension for an additional premium as low as $14. At this price, smaller janitorial establishments can’t afford not to purchase it.
The following claim example shows the need for our Property Damage Extension.
A cleaning company employee was using a steel wool scrubber on a client’s custom shower door, which resulted in multiple scratches on the door that could not be removed. Ultimately, the custom shower door needed to be replaced, costing the cleaning company an unexpected $1,200. The owner of the cleaning company had purchased a policy with the Property Damage Extension, which means the cost for this claim was covered.
At USLI we provide you with the ability to build coverage to address your applicant’s exposure, risk tolerance and budget. Listed below are additional coverages available on a USLI policy to better protect your insured against losses that could possibly threaten their business.
- Inland Marine Extension (available for as little as $25)
- Equipment – $2,500 per item/$10,000 per single loss
- Rental reimbursement – $250 per day/$5,000 per single loss
- Lost key coverage
- Employee Theft of Customer’s Property (available for as little as $100)
- Limits up to $100,000 per occurrence/$200,000 aggregate
- Contractor’s Equipment Floater
- $10,000 blanket limit/$2,500 any one item/$500 deductible
- Blanket additional insured
- Commercial umbrella up to $5,000,000
Don’t leave your janitorial services clients with coverage gaps! Turn to USLI for coverage options that are tailored specifically for the small business owner.
Please contact your regional Commercial Lines underwriter for more information or a quote, or get a web quote today >>
Download marketing materials for the Janitorial Services product >>
As always, thank you for your support and business.
Contact Brendan McDermott
Underwriter | Greater Metro NY Commercial Lines | 888-523-5545 Ext. 2320
Written by David Ford
March 3, 2016