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.
Factors affecting Workers' Comp Premiums for Janitorial Services
Workers’ comp premiums for janitorial services are determined by:
Industry
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:
- Class Code 9014: Standard/Commercial janitorial services - $2.43 per $100 of payroll
- Class Code 0917: Residential cleaning - $3.31 per $100 of payroll
- Class Code 5610: Post-construction cleanup - $5.03 per $100 of payroll
- Class Code 9403: Junk removal - $7.72 per $100 of payroll
- Class Code 9170: Above-ground window cleaning - $8.69 per $100 of payroll
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.
Payroll Size
The size of your payroll matters. Larger payrolls mean higher premiums because there’s more potential for accidents.
Claims History
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.
State Regulations
Premiums vary by state due to different rules, medical costs, and local data on risks.
How are Workers' Compensation Premiums calculated for Janitorial Workers?
Here’s a formula you can use to calculate your premium:
Payroll divided by 100 x rate = Premium
Calculate the Payroll
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.
Find your Rate
Next, determine the industry Rate for your state. Here are 3 ways to find your rate:
- Refer to the national average rate for your class code listed above.
- If you have a current policy, look at the section that breaks down the premium. The first line typically lists the class code, projected payroll (or remuneration), and the rate per $100 of payroll.
- If you are a standard janitorial or cleaning company and fall under Class Code 9014, use the list below to find your rate in selected states from a leading national carrier.
9014 - Commercial Janitorial Workers’ Comp Rates per $100 of Payroll
- Alabama: $2.44
- Arkansas: $1.06
- Connecticut: $2.94
- Florida: $2.61
- Georgia: $2.73
- Louisiana: $2.31
- Maine: $2.09
- Maryland: $2.00
- Mississippi: $2.36
- Missouri: $2.59
- North Carolina: $2.12
- Rhode Island: $3.58
- Tennessee: $1.52
- Texas: $0.98
- Virginia: $1.56
Let’s work through an example together:
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
Step 1: Calculate Payroll
We need the annual payroll of each employee.
- The 8 full-time cleaners are making $16/hour, multiplied by 40 hours and 52 weeks for an annual payroll of $33,280 for each cleaner.
- The 7 part-time cleaners are making $16/hour, multiplied by 30 hours and 52 weeks for an annual payroll of $24,960 for each server.
- The 3 office workers are making $20/hour, multiplied by 40 hours and 52 weeks for an annual payroll of $41,600 for each worker.
Step 2: Determine Rates
Now you have to figure out which class code applies to each employee and find the corresponding rate.
- The cleaners are classified as Code 9014 with Florida’s rate of $2.61.
- The office staff is classified as clerical-only, which is Code 8810 with Florida’s rate of $0.13.
Step 3: Apply the Formula
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 9014: First, add the entire 9014 payroll:
- 8 full-time cleaners: $33,280 x 8 = $266,240
- 7 part-time cleaners: $24,960 x 7 = $174,720
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.
- 3 office workers: $41,600 x 3 = $124,800
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.
Annual Cost of Workers' Comp for Commercial Janitorial Services (9014) Per Employee
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.
Estimated Commercial Janitorial (9014) Workers’ Comp Cost per Employee
Does it matter where I buy a Policy?
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:
- Reputation: Look for a provider known for efficiently handling workers' comp claims. A solid reputation ensures your employees get the support they need during injury recovery.
- Financial Strength: Choose a company with strong financial stability. This ensures they can fulfill their obligations and pay claims promptly.
- Customer Service: Responsive and helpful customer service is essential. You want a provider that assists promptly when issues arise with claims.
- Industry Expertise: Opt for insurers experienced in serving janitorial services and similar industries. They understand the unique risks and coverage needs of your business.
What are the benefits of Workers' Comp?
Medical Expenses
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.
Lost Wages
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.
Death Benefits
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.
Protection from Lawsuits
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.
How can I make Workers' Comp Cheaper?
Safety Program
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.
Correct Class Codes
Make sure your workers' comp class code accurately reflects your cleaning business operations. Errors can lead to higher premiums.
Premium Discounts
Ask your insurance provider about discounts for maintaining a safe workplace or a favorable claims history. Being proactive can qualify your business for savings.
Work on Reducing Claims
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.
Get an Estimate
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.
Mordechai Kamenetsky, co-founder and lead agent of Kickstand, is recognized as an expert in workers' compensation. He is passionate about helping small businesses manage risks and lower their workers' comp costs. In his articles, he educates readers and clients on the intricacies of workers' comp insurance.
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?”
