What insurance is needed for a two man cleanup service?
Question Details:
I know we need some liability insurance or perhaps to get bonded. We are thinking about starting a cleanup business for rental properties. Insurance would be a necessity if I hired someone. I just don't know what kind and how much, or how much it would cost.
I agree with the recommendations of the first posting attorney. You need to speak with a good insurance broker.
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Definitely liability insurance. Other than that, if you have business property (van, supplies, tools, computers, etc.) you'd want insurance on it. You might want business interruption insurance--pays you if some outside cause (like a fire where you keep your supplies) prevents you from working temporarily. Possibly an umbrella policy on top of the other coverage, for an additional layer of protection. If you hire anyone, you'll need to provide worker's comp for them.
A good insurance broker will be more than happy to provide quotes, estimates, advice, and to help you determine how much insurance is appropriate.
Another thing: set up a corporation (probably a sub-S) or a limited liability company (LLC) to do your business under and keep it separate from your personal finances and assets. That will provide additional protection for your own assets and other sources of income--if you are sued and lose, or declare bankruptcy, can't repay loans, etc., all that creditors can reach are business property and assets, not you own personal property and assets. It's fairly inexpensive to do this, and well worth the protection.
