A UK cleaning company should hold Employers' Liability insurance, which is legally compulsory at a minimum of £5 million, and Public Liability insurance, which almost every commercial client demands even though it is not required by law. Together these cover harm to staff and to clients, their staff and their premises.
Is cleaning insurance a legal requirement?
One part of it is. Employers' Liability (EL) insurance is compulsory as soon as a business becomes an employer, and it must cover at least £5 million. A business can be fined £2,500 for every day it is not properly insured. The requirement comes from the Employers' Liability (Compulsory Insurance) Act 1969.
Public Liability (PL) insurance is not required by law, but it is demanded by virtually all commercial clients — so in practice a commercial cleaning company needs it to win work.
What is Employers' Liability insurance?
Employers' Liability covers claims from employees who are injured or made ill through their work. It is compulsory for employers, with a legal minimum of £5 million of cover, though in practice most insurers provide at least £10 million. Employers must also display the certificate; failing to display it, or refusing to show it to an HSE inspector, can carry a fine of up to £1,000.
What is Public Liability insurance, and how much do clients ask for?
Public Liability covers injury to third parties (such as a client's staff or a visitor) and damage to their property arising from the cleaning work. It is not a legal requirement, but the level of cover a client asks for scales with the environment.
What other cover do cleaning contracts involve?
Beyond EL and PL, cleaning businesses commonly bundle tools and equipment cover, business equipment cover, legal expenses and personal accident cover. Professional indemnity becomes relevant where a contractor gives advice or handles specifications (for example, writing a cleaning specification for a tender).
How to check a cleaning company is properly insured
Ask to see the current EL certificate (it must be displayed) and confirm the PL limit meets your contract's requirement. A properly run contractor will provide these as a matter of course. OptusGlean UK is fully insured; the specific limits that apply to your contract are confirmed as part of the quotation, so you have the figures in writing before work begins.