When a cleaning company's employee slips on your wet floor and breaks a wrist, when a buffer scratches an expensive marble lobby, or when a cleaning solution damages a tenant's equipment — who pays? The answer depends entirely on the cleaning company's insurance coverage. Yet many facility managers sign cleaning contracts without verifying insurance, or accept a certificate of insurance without understanding what it actually covers. This guide explains the essential coverages and how to verify them.
General Liability Insurance
Commercial general liability (CGL) insurance covers third-party bodily injury and property damage caused by the cleaning company's operations. If a visitor slips on a freshly mopped floor, if cleaning chemicals damage a tenant's property, or if a cleaning cart dents an elevator door — CGL covers the claim. Industry standard minimums are $1 million per occurrence and $2 million aggregate. For larger facilities or higher-risk environments (healthcare, government), $2 million per occurrence and $5 million aggregate may be appropriate. Always verify that the policy is occurrence-based (covers incidents during the policy period regardless of when claims are filed) rather than claims-made (which can leave gaps).
Workers' Compensation
Workers' compensation is legally required in all 50 states for employees. It covers medical expenses and lost wages when a cleaning employee is injured on the job. Without workers' comp, an injured employee could file a claim directly against your facility — even though they work for the cleaning company. Verify that the cleaning company's workers' comp policy is active and covers all employees working in your facility. Be cautious of companies using 1099 independent contractors rather than W-2 employees — independent contractor misclassification is rampant in the cleaning industry, and it can leave your facility exposed if an uninsured worker is injured on your premises.
Additional Insured Status
Requiring the cleaning company to add your organization as an additional insured on their CGL policy is critical. Additional insured status means their insurance responds first if a claim arises from their work at your facility — before your own insurance is triggered. Without additional insured status, you might need to file a claim on your own policy and then seek reimbursement from the cleaning company's insurer, a process that's slow and uncertain. Request a certificate of insurance naming your organization as additional insured before the contract starts, and require automatic notification if the policy is cancelled or modified.
How to Verify Insurance
Don't accept a certificate of insurance at face value — certificates can be outdated, forged, or for policies that have since been cancelled. Best practices include requesting certificates directly from the insurance carrier or agent (not from the cleaning company), verifying the policy is current by calling the carrier's verification line, confirming that the coverage types and limits match your contract requirements, requesting 30-day advance notice of cancellation, and re-verifying insurance annually at contract renewal. Many facility management companies now use automated insurance tracking platforms that monitor coverage status in real-time and alert managers when coverage lapses.
GreenPoint maintains comprehensive insurance coverage including $2M general liability, full workers' compensation, commercial auto, and umbrella policies. We provide certificates of insurance with additional insured endorsements as a standard practice for all clients.