Is having insurance and being bondable necessary for a small home based cleaning service?

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Is having insurance and being bondable necessary for a small home based cleaning service?

Legally and professionally, is it OK to conduct a cleaning business without insurance or being bonded?

Asked on June 25, 2009 under Business Law, North Carolina

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Legally, it is ok. It also incredibly unwise. Without insurance, if you damage anything cleaning, the cost come out of your pocket; or if someone is injured in a way traceable to your business, including slipping on cleaning products, hit by you while your driving to a client's, poisoned or allergic reaction to a cleaning product, etc. EVERY business that has ANY potential for property damage or, worse, personal injury, should have insurance.

Also commercial insurance is usually inexpensive. I've worked in publishing, for example, and while it's not directly comparables, a $500k annnual gross sales publishing company which maintains $100k of inventory can get commercial insurance, including liability w/a $1mm limit, for around $1,600 per year. If your business isn't going to make enough to cover the insurance cost, it's probably not worth doing.


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