Running a Cleaning Business

General Liability vs Professional Liability Insurance for Short-term Rental Cleaners

Navigating the fast-paced world of Airbnb cleaning comes with its unique set of challenges, where understanding the nuances of general and professional liability insurance can be your safety net. Discover how you can safeguard your short-term rental cleaning business against unexpected mishaps and client disputes. Use our guide to ensure you're protected and ready to thrive.

By Insurance Canopy

Last updated: October 23, 2024

The following is a guest article by Insurance Canopy, part of our ongoing series on insurance for Airbnb cleaning businesses.

Liability Insurance Guide for Short-Term Rental Cleaners

Even the best cleaners can face unexpected challenges. That’s why having the right cleaning business insurance is crucial to safeguarding your business. 

This guide explores everything you need to know about liability insurance for short-term rental cleaners, so you can focus on delivering impeccable service.

Why Cleaning Insurance in the Short-Term Rental Industry is Important

Working in a fast-paced industry like short-term rental or Airbnb cleaning means you’re dealing with frequent turnovers, tight deadlines, and high expectations from property owners. Services like Turno can help you manage these demands effectively, but while you’re an expert at keeping things spotless, accidents can still happen. 

Here’s why cleaning business insurance is so important:

  • Accidents happen: Things can go wrong, even when you’re careful.
  • Injuries on the job: Guests can get hurt, and you might be held responsible.
  • Protect your reputation: Negative reviews can impact your business.
  • Guest claims: Sometimes guests may point fingers (even if it’s not your fault).
  • Building client trust: Having insurance says, “I’m a professional—trust me!”
  • Peace of mind: With cleaning insurance in your corner, you can focus on delivering great service without worry.
professional cleaner holding a container of cleaning supplies and her smartphone in the other hand

What is General Liability Insurance?

General liability insurance swoops in to save the day when accidents happen, like when a guest trips over your cleaning supplies or accidentally sends a lamp crashing to the floor. This coverage helps with medical bills and legal fees related to third-party injuries or property damage. 

However, it’s crucial to know that this policy doesn’t extend to cover your employees if they get injured; workers’ compensation insurance would be needed for that.

What is Professional Liability Insurance?

Professional liability insurance, also called errors and omissions insurance, protects you when things don’t go exactly as planned — particularly with claims of negligence or failure to deliver services properly. For example, if a property owner is unhappy because a guest claims the space wasn’t cleaned thoroughly, this coverage can help you handle any legal expenses or damages that may arise.

General Liability vs. Professional Liability Insurance

Understanding the differences between general liability and professional liability insurance can be confusing, so let’s break it down!

CategoryGeneral Liability InsuranceProfessional Liability Insurance
CostsTypically lower premiums than Professional Liability.

Average costs are at $520/year, depending on the coverage limits and business size. With Insurance Canopy, rates start at $435/year.
Generally, premiums are higher due to the nature of the coverage.

Average costs range from $500 to $1,000/year, based on the scope of services and risks involved.

Key Coverage Areas
— Third party bodily injury (e.g., a guest slips on a wet floor)
— Third-party property damage (e.g., accidental damage to rental property)
— Third party medical payments
— Legal defense costs
— Claims of negligence or mistakes in service (e.g., client dissatisfaction with cleaning quality)
— Legal fees from disputes over unsatisfactory work
— Errors or omissions in services provided
Importance for Short-Term Rental CleanersEssential for protecting against physical accidents that happen during the cleaning process, such as third-party property damage or injuries to others.Crucial for defending against claims of professional errors, mistakes, or failure to deliver promised results. Helps maintain a clean, professional reputation.
Differences in Risk ManagementCovers more obvious risks like physical accidents and property damage, which are common in the cleaning industry.Focuses on protecting against more abstract risks such as client complaints, disputes, or claims of poor service.
Situations Where Each Type of Insurance Is Preferable— Ideal for cleaners in high-traffic rental properties, where physical accidents are more likely.
— Best for businesses where clients are concerned with potential property damage.
— Useful if your work involves tailored cleaning plans or specific results.
— Essential if there’s a risk of client dissatisfaction or disputes over the quality of service.
General Liability vs. Professional Liability Insurance

Factors to Consider When Choosing Insurance

Choosing the right insurance is a big decision, and a few key factors can guide you in the right direction:

Assess Your Business Needs and Potential Risks

Take a close look at the services you offer and the potential risks involved. Are you cleaning high-end properties? Do you work in environments where accidents are more likely to happen? Knowing your business risks can help determine the coverage you need.

Evaluate the Scope of Services Offered

If you offer additional services, such as deep cleaning or maintenance, your risk profile changes. More specialized services may require expanded coverage, particularly in the realm of professional liability.

Budget Considerations for Insurance Premiums

Insurance premiums are a necessary business expense, but they don’t have to break the bank. Consider both the monthly cost and the level of protection each policy offers. Finding the right balance between affordability and coverage is key.

Coverage Add-ons for Short-Term Rental Cleaners

Enhancing your cleaning insurance with coverage add-ons can provide extra peace of mind and protect your business even further. Here’s what to consider:

Tools and Equipment Coverage

Your cleaning supplies and tools are essential to your business. Tools and equipment coverage, also known as inland marine insurance, can protect you from financial loss if your gear is stolen, damaged, or lost on the job.

Workers’ Compensation Insurance

If you have employees, workers’ compensation insurance is a must. It covers medical expenses and lost wages if an employee gets injured while working. 

In many states, this insurance is legally required once you have a certain number of employees, typically starting with one to five, depending on the state’s regulations. For more information, you can refer to this guide on state-specific workers’ comp requirements.

Cyber Liability Insurance

Cyber liability insurance is designed to protect you if sensitive client information that you store online, such as addresses or payment details, is compromised. It can cover data restoration, legal fees, and more in the event of cyber crimes like hacking or malware. 

Commercial Auto Insurance

If you use your vehicle to travel between cleaning jobs, commercial auto insurance is necessary. It covers accidents, damage, and other issues related to using your car for work purposes.

Janitorial Bonds

A janitorial bond, also known as a surety bond, protects your clients from potential theft by your employees. It’s an added layer of trust and professionalism that can set your business apart from competitors.

Scheduling next clean

What Cleaners Should Know About Insurance Claims 

When unexpected incidents occur, knowing how to navigate the insurance claims process can save you time and stress. Here’s what you should know:

How Insurance Simplifies Claims

The right insurance policy makes the claims process straightforward. Whether it’s a claim for property damage or an injury, your insurer can handle most of the heavy lifting, helping you avoid financial stress. This is especially useful when juggling multiple Turno-managed cleanings.

How to File a Claim

Filing an insurance claim may seem overwhelming, but following the right steps can help ensure a smooth process. Here’s a quick guide to help you navigate it efficiently:

  • Document the incident thoroughly (e.g., note the time, location, and details of what happened).
  • Take photos or gather other evidence, like receipts or repair estimates, to support your claim.
  • If the incident involves a crime, report it to the appropriate legal authority and file a police report. 
  • Contact your insurance provider as soon as possible.
  • Fill out and submit the necessary paperwork provided by your insurance company.
  • Provide clear details about the incident, including all relevant evidence.
  • Keep a record of all communication and follow up on the status of your claim if needed.

FAQs About Insurance for Short-Term Rental Cleaners

Do I need both types of insurance as a short-term rental cleaner?

While it’s not always required, having both general liability and professional liability insurance provides well-rounded protection. General liability is designed to cover accidents like third party property damage or injuries, while professional liability protects you from claims of mistakes or negligence in your work. 

Together, they cover a wide range of potential risks, giving you peace of mind as you clean – especially when managing multiple properties through Turno.

What are the common exclusions in each type of insurance?

Each policy has its limits. Here’s a breakdown of the common exclusions you should be aware of:

General Liability InsuranceProfessional Liability Insurance
Dissatisfaction in your professional services (e.g., poor cleaning results)Physical injuries (e.g., slips or falls while on the job)
Losses related to professional errors or adviceProperty damage (e.g., breaking furniture or damaging a rental property)
Injuries or damages caused intentionallyIntentional wrongdoing or illegal activities
General vs. Professional Liability Insurance Common Exclusions

How do I find the best insurance provider for my needs?

To find the best provider, compare quotes from multiple companies. Look for insurers that specialize in coverage for cleaning businesses or short-term rental services. Check reviews, ask for recommendations, and make sure the provider offers flexible coverage options that fit your specific needs and budget.

Secure Success with the Right Insurance for Short-Term Rental Cleaners

As you obtain the necessary insurance, consider leveraging Turno, the smart way to schedule, pay, and find vacation rental cleaners. With Turno, you can automate your cleaning management, giving you more time to focus on providing fantastic service while cutting down on those pesky operational headaches.

By pairing the right insurance with Turno’s innovative tools, you’re not just protecting your business—you’re setting yourself up for success in the bustling short-term rental market. Check out Insurance Canopy today to find the perfect cleaning business insurance tailored to your needs!

Disclaimer: The information provided here is only applicable to US-based cleaners. For specific insurance advice, please consult with your insurance representative.