Workers' comp rates for janitorial services start at $67 monthly per employee for standard commercial cleaners. Your exact premium will depend on the services you offer, your state, payroll size, and claims history.
Workers’ comp premiums for janitorial services are determined by:
Workers’ comp insurance costs differ for each industry. It all depends on the level of risk in your type of work.
The National Council on Compensation Insurance (NCCI) is an organization that assesses the level of risk of every job and assigns it a four-digit class code.
Jobs with higher risks, like above-ground window cleaning, have higher rates compared to lower-risk jobs like standard commercial cleaning.
Here are the Janitorial class codes and their rates:
Please note: These are average rates and can vary based on your state’s specific rates and other factors, plus taxes and fees.
For a more detailed explanation and to see which cleaning businesses that fall into these categories, check out our janitorial services workers' comp class code guide.
The size of your payroll matters. Larger payrolls mean higher premiums because there’s more potential for accidents.
If you have fewer past claims, your premiums can be lower. More frequent or severe claims can raise your rates because they show higher risk.
Premiums vary by state due to different rules, medical costs, and local data on risks.
Here’s a formula you can use to calculate your premium:
Payroll is the total amount paid to your janitorial workers over the year. Make sure to include all employees in your total payroll.
To estimate annual payroll, multiply each employee’s hourly rate by the hours they work per week and then by the weeks they work per year.
Divide the total payroll by 100 to find the Payroll Per $100. This shows how much insurance you pay for every $100 of payroll.
Kickstand Note:
Many cleaning businesses hire part-time staff, so include the payroll of all part-time workers, both W-2 employees and any uninsured 1099 contractors, in your calculations. If 1099 workers don’t have their own insurance, you’ll be responsible for any claims, and your insurance company will bill you for them during an audit.
Next, determine the industry Rate for your state. Here are 3 ways to find your rate:
Say you own a commercial cleaning business in Florida. You have a crew of 15 cleaners, 8 full-time and 7 part-time. Three employees handle scheduling, sales, and marketing in the back office.
This staff needs to be protected by a Janitorial and Cleaning Workers’ Comp Insurance policy that you as the employer pay for and provide. Let’s consult the formula and follow it to figure out your premium.
Payroll divided by 100 x rate = Premium
We need the annual payroll of each employee.
Now you have to figure out which class code applies to each employee and find the corresponding rate.
Here’s how to apply the formula. You need to do it separately for each class code. Let’s do class code 9014 first.
Class Code 9082: First, add the entire 9014 payroll:
Total Payroll: $440,960
Apply the formula: $440,960 (payroll) divided by 100 x $2.61 (Industry rate) = $11,509
Class Code 8810: Do the same for the office workers.
Apply the formula: $124,800 (payroll) divided by 100 x $.13 (Industry rate) = $162
Combine both for a total annual premium $11,509 + $162 = $11,671.
This would be in addition to taxes and fees which usually add a few hundred dollars to your premium.
Remember that the actual premium may vary depending on factors such as your businesses’ experience modification number, specific state regulations, and any discounts provided by your insurance carrier.
To get a sense of what each 9014 full time commercial janitorial employee will cost, here is an average premium of the costs for selected states.
Absolutely. It's not just about finding the cheapest option. As a business owner, you need a policy that not only provides the right coverage but also ensures your employees are well taken care of when they need to make a claim.
Here are key factors to consider when selecting an insurance provider:
Workers' Comp Insurance for cleaning businesses covers all medical expenses if a worker suffers a work-related injury or illness.
This includes surgeries, therapy, and rehabilitation. It may also cover transportation costs to and from medical appointments.
If an employee can't work due to a work-related injury or illness, workers' comp not only pays for medical expenses but also compensates for lost wages. This helps employees focus on recovery and returning to work.
In unfortunate cases where an employee dies due to a work-related incident, workers' comp provides death benefits to their family. This includes covering funeral expenses and offering financial support to dependents, easing the financial burden during such difficult times.
Workers' comp shields your cleaning business from potential legal action. This coverage reduces the likelihood of facing court costs and lawsuits filed by injured employees.
By creating a formal safety program you will actually help reduce accidents and claims and better yet; in some states the underwriters can apply a discount for implementing this program.
A janitorial safety program should cover regular safety training, certification for specific tasks like carpet cleaning, providing personal protective equipment (PPE) such as gloves and masks, ensuring equipment is well-maintained, and promoting safe lifting techniques.
It should also address common workplace risks like chemical exposure, slips, and strains from heavy lifting.
Make sure your workers' comp class code accurately reflects your cleaning business operations. Errors can lead to higher premiums.
Ask your insurance provider about discounts for maintaining a safe workplace or a favorable claims history. Being proactive can qualify your business for savings.
Managing and preventing incidents in your workplace lowers your claims history (Experience Modification Rate or ExMod), leading to lower premium costs over time.
See more Cost Saving Tips for Janitorial Services Workers’ Comp.
Kickstand Insurance specializes in workers' comp for janitorial services. Use our online quoter for more precise workers' comp rates tailored to your cleaning business.
Note: The information provided in this blog is intended for general informational purposes only and is not a substitute for professional legal or insurance advice. Laws and regulations regarding workers' compensation insurance are complex and vary by state and by specific circumstances. Therefore, readers are encouraged to consult with a qualified legal or insurance professional to obtain advice with respect to any particular issue or problem they might have.
The question people ask us most often is, “Does my business need workers comp?” This often leads to the second-to-most frequently asked question: ”Do owners need workers comp?”