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waqas4 · Jan 20, 2011, 01:11 PM

Hello,
I am starting cleaning business, but not sure if having insurance and bonded would be the 1st thing to do before I contact commercial industry, what I understand insurance is not something everyone has, but is it crucial to have if you are approaching commercial business? Any suggestion? I mean right now I have my business just registered with local muncipility and that's about it, have business cards that I hand out and so far so good, but need to contact commercial industry but not sure what do I need before I even think of contacting them. Any idea? Suggestions?

Fr_Chuck · Jan 20, 2011, 01:20 PM

If you are inside their home and ruin their carpet, who is going to pay for it, ( that is why you have insurance)

If you are using your personal vechile to to to the job, and have a wreck and they sue, but your insurance may refuse to pay if you did not have your vechlie insured as a commercial vechile.

Bonding may not be required unless customer requires it

HBF · Jan 20, 2011, 01:34 PM

If you don't want to spend the money on the insurance before you have actual clients, I would recommend at least doing the legwork to find the right policy for you. That way when you are ready to go on those first few bid walk thru's, you will at least be ready to purchase the insurance.

waqas4 · Jan 20, 2011, 01:36 PM

But insurance is quite expensive which ultimately increases my charges, so I wonder how do they still make money by chraging just 10-12$ an hour.

HBF · Jan 20, 2011, 01:44 PM

Make sure you are charging enough to cover the cost of your supplies, insurance, taxes and your time. You charge what you need to in order to make money.

waqas4 · Jan 20, 2011, 02:27 PM

Any idea how much does it cost to get insurance? Rough idea?

Stringer · Jan 20, 2011, 02:57 PM

It depends which area you are in the US (if you are) however $10 to $12 per hour is too low.

In the Chicago area $15 to $19/20 per hour is very competitive.

And yes you must have liability insurance. Especially if you intend to do commercial work.

AND, you need to incorporate right away and get your TIN tax number to protect yourself and your family if they are involved in the business.

Also you need to apply for a name for your company as it must not be in use presently by any other company.

Stringer

Stringer · Jan 20, 2011, 03:01 PM

any idea how much does it cost to get insurance? rough idea?

When you start your business you will not have a track record so your insurance will be a little higher. After you have been in business for a while you can have it lowered if you haven't abused it.

The best way to do this is check with a few insurance company's, make sure that your 'umbrella' is enough, possibly $5M.

Stringer