Can your Janitorial business improve the chances of being claims free and save premium on the bottom line?

Depending on your business goals, you may opt to use Avoidance as an insurance strategy.  Being selective in areas of your Janitorial Business can help limit your exposure to claims and keep your premiums at a manageable level.  Consider Avoidance Strategies in the following areas:

Scope of Work – Evaluate if you should be doing the riskier work.  Performing high risk work puts employees and the company's liability at risk.  Many Janitorial businesses choose to sub-contract out exterior windows, floor waxing/buffing, or power washing.  Is it better for your business to sub-contract out high risk work?  Before moving into that direction, discuss the steps that should to be taken with your insurance agent.

Where You Work – Evaluate the cost of doing business in areas that are far away or in another state or in unsafe areas.  Are your General Liability, Commercial Auto and Workers Compensation premiums inflated due to where you work?  Insurance premiums can increase due to work in other states, and your business may be subject to new regulations.  Running crews over longer distances can impact the premiums for your Commercial Auto insurance.  And premiums for your policies are impacted by your business locations.  It is in your best interest to conduct business from more secure offices that are equipped with safety measures such as fire and burgler alarms.  Always discuss where you work with your agent to understand how your insurances may be impacted.

High Risk Employees – Evaluate your policies and procedures for hiring and employing “risky” employees.  Do you ask for and check references for potential hires?  Do you perform background checks for employees?  Do you have Drug–Free Workplace policies? Do you check MVRs regularly?  Some of these Best Practices will benefit your Ongoing Operations and Experience Modification in the long run.  Having sound employment policies and procedures are always looked upon favorably by insurance underwriters.  Having these measures in place make is easier to obtain other insurance coverage(s), such as Employment Practices Liability Insurance (EPLI), Employee Benefits Liability (EBL) and Directors & Officers coverage (D&O).
Step outside of your business to understand your exposure(s) in these areas today.  Implementation of an Avoidance Strategy might be a key to cleaning up your Janitorial Business.  Let American Insurance know what strategies have worked for you.

Ryan Markoff, AAI
American Insurance
ryanm@aioinc.us

Our independent insurance agency represents a handful of insurance companies that like to work with Janitorial companies.  Some of our insurance companies are regional and some are national.  Some our companies have a broad interest for Janitorial exposures, but some limit the accounts they are willing to write, based on the work being performed.  When we work with a Commercial Janitorial company or a House Cleaning company or a Janitorial Franchise company, we know which companies are going to be a better fit for you.