CLEANERS INSURANCE CASE STUDY
Hotel and Pub Housekeeping Cleaner, Public Liability After an Occupation Decline
A small cleaning business earning most of its revenue from hotel and pub housekeeping needed public liability. One mainstream insurer declined the occupation outright; two specialist markets quoted.
THE SITUATION
A small cleaning business came to Tank Insurance for public liability. Around three quarters of its revenue, about $60,000, came from in-house housekeeping for hotels and pubs. The remaining $15,000 or so was after-hours office cleaning. Total revenue was around $80,000 a year.
The client needed a certificate of currency for its venue work.
OUR APPROACH
Cleaning is written by many insurers, but the venue type and the hours of work are usually what decide which of them will quote. We described the work by venue and by time of day rather than as "commercial cleaning".
- Housekeeping in hotels and pubs was disclosed as the main activity, with the office cleaning stated as after-hours only.
- The risk went to a mainstream insurer and to two specialist liability facilities, so the client had comparable terms.
- One mainstream insurer declined, recording that cleaning hotels and pubs was not an acceptable occupation for it.
THE CHALLENGES
Hospitality cleaning sits outside the occupation guidelines of some business pack insurers, and cleaning during trading hours narrows the field further. In a separate Tank enquiry for shopping-centre cleaning carried out during centre hours, two liability facilities confirmed they only write commercial cleaning done outside business hours.
For this client the venue type, not the hours, was the issue. The two specialist facilities that quoted were comfortable with housekeeping in licensed venues once the work was described accurately.
THE OUTCOME
Public liability was placed with ASR at a premium of approximately $2,000 a year. The alternative specialist quote came in at around $2,200.
Final Solution: Public liability for a hotel and pub housekeeping cleaner at around $2,000 a year, with a certificate of currency available for the venue contracts.
This case records one historical outcome; current insurer appetite, premium, timing and terms depend on the complete risk at the time of application.
For the wider buying context, see our cleaners insurance guide and the public liability insurance brokers page.
CLEANING BUSINESS QUESTIONS
What this placement answers for other cleaning businesses
Why would an insurer decline a cleaning business?
How much is public liability for a small cleaning business?
Do I need to tell the insurer which venues I clean?
CLEANERS INSURANCE
Put this placement in context
Case-study results are historical and are not a promise of current pricing, capacity or policy terms. This page is general information only and does not take account of your objectives, financial situation or needs.
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