Finding the right carpet cleaner insurance should not be a difficult process. For 20 years, the team at Safeguard Insurance has worked with dozens of carpet cleaners small and large to provide affordable business insurance solutions. Our mission is to provide your business with the appropriate insurance coverage at the best possible price. To help you find the right coverage, here are some important carpet cleaner insurance myths we would like to dispell.
Myth #1: General liability covers all property damage caused by carpet cleaning.
General liability is the foundation of your business insurance. Many inferior carpet cleaning insurance programs omit important coverage for damage to property in your care, custody, or control. This exclusion, along with defective workmanship, is standard in the ISO CG0001 04/13 policy.
A well-written carpet cleaner insurance policy will include an endorsement that removes the care, custody, control exclusion and provides a separate sub-limit of coverage for those types of claims. Some insurance carriers, such as Liberty Mutual, may even offer limited coverage for damage caused by incorrectly performed work.
When shopping for general liability coverage, make sure you ask the agent or provider about care, custody, and control claims. If they are unaware of this exclusion or do not offer a coverage buy-back, we recommend you keep shopping. Like any other insurance product, the cheapest policy is rarely the best policy.
Get a Quote: Carpet Cleaner General Liability
Myth #2: My equipment is covered by auto insurance
This issue is part myth and part misunderstanding. Equipment that is permanently attached to your vehicle might be included for coverage under your commercial auto insurance policy. This could include your extraction machine and tanks but may not include accessories that are not attached to the vehicle.
Here is the misunderstanding: auto insurance claims are always settled on an actual cash value basis. Actual cash value, or ACV, means the depreciated value or “fair market value”. Imagine a claim scenario where your commercial vehicle is destroyed in an accident, including the extraction machine and other installed equipment. Your insurance company will owe you only the fair market value of the vehicle (easy to calculate) and the depreciated value of the equipment (not as easy to determine). You may find it difficult to replace the carpet cleaning equipment with the depreciated value settlement you receive.
The better solution is to consider a separate equipment floater insurance policy for your cleaning equipment and accessories. These policies can be written on an agreed value or replacement cost basis, instead of actual cash value. The floater policy can also include coverage for “unscheduled” or blanket tools that include items not attached to the vehicle.
Get a Quote: Commercial Auto Insurance
Myth #3: I hire day laborers and pay in cash so I do not need workers compensation.
It is shocking how often we hear this oft-repeated myth from small business owners. In unequivocal terms let put this one to bed: if you hire workers – regardless of how you pay them – you are required to carry workers compensation insurance. Paying cash to avoid payroll and unemployment taxes is a terrible idea for many reasons and is probably illegal. Beyond that, nearly every state requires workers, day laborers, and employees to be covered by workers compensation for on-the-job injuries. Do not make the erroneous assumption that cash wages or “independent contractor” status exempts you from carrying workers compensation insurance.
Get a Quote: Workers Compensation Insurance
Buy the right carpet cleaner insurance to protect your business.
When shopping for carpet cleaner insurance, do not fall for myths and half-truths. Make sure you work with an agent that understands the insurance needs of your business and can tailor a policy to your operation. Insurance policies are not all created equal and the cheapest option is almost never the right option. Contact us today for a no-obligation review and carpet cleaner insurance quote.