Requirements
Some coverage is required by law. Some is required by your clients. Here's how to tell the difference, and what actually applies to you.
These get conflated constantly, and they're genuinely different things. Legally required coverage is set by your state and applies whether or not any client asks for it. Contractually required coverage is whatever a specific property manager, facility, or homeowner decides they want to see before they'll let you in the door — and it varies client to client, not state to state.
This is the one genuinely state-driven requirement in cleaning. Some states require workers' comp the moment you have a single employee, part-time or full-time. Others set a headcount threshold before it kicks in. It's a more involved coverage to set up correctly than GL, since it depends on payroll classification and your specific state's rules — worth a direct conversation with us once you're bringing on your first hire — see our full hiring checklist for everything else that changes at the same time, rather than assuming a one-size answer applies.
Registering an LLC or getting a local business license doesn't create insurance coverage, and plenty of new operators assume it does. Licensing and insurance are handled by two completely different bodies — your state's business registration office and a private insurance carrier — and having one doesn't imply or require the other unless your specific state explicitly ties them together.
Unlike workers' comp, janitorial bond requirements almost never come from state law. They come from whoever you're contracting with — a property manager might require a $10,000 bond, a school district might require $25,000, and a homeowner will likely never ask for one at all. Check your specific contract, not a general state rule, before assuming what bond amount you need — and if the client's asking for both a bond and liability coverage, here's why they're not interchangeable.
If you're expanding into a new state or picking up a contract across state lines, confirm two things before you bid: whether your current GL policy actually extends coverage there, and whether that state has different workers' comp thresholds than the one you're used to. Both are quick to confirm with us and can change your numbers before you commit to a bid.
As an independent agency, we're not limited to one carrier's state footprint. If you're operating in more than one state, tell us all of them on the quote form — we'll structure coverage that travels with you rather than requiring a separate policy for every state line you cross. Multi-state pricing varies too; see our cost breakdown for what typically drives the number up or down.
Skipping a legally required coverage — most commonly workers' comp once you cross your state's employee threshold — isn't just a paperwork risk. States can levy fines, and if an employee is injured while you're uninsured, you can be personally liable for medical costs that a policy would otherwise have covered, on top of any penalty. It's a materially worse outcome than the premium you were trying to avoid paying.
If you operate under a cleaning franchise or get consistent work through a referral network or lead-gen platform, check their specific insurance requirements separately from anything your state requires — franchise agreements and platform terms often specify minimum limits or additional insured language well above the legal floor, and those contractual requirements apply regardless of what your state does or doesn't mandate.
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FAQ
In most states, no — but it's so commonly required by clients and property managers that operating without it functions like a requirement in practice, even where it isn't written into law.
No. Some states trigger the requirement at a single employee, others set a higher threshold. Tell us your state and headcount and we'll confirm what actually applies to you.
No, licensing and insurance are separate. A business license from your state or city doesn't provide or replace liability coverage.
Not necessarily. We can often structure one policy that covers multiple states, but tell us all the states you work in upfront so it's built in from the start rather than discovered after a claim.
The fastest way is to ask us directly on the quote form — tell us your state and whether you have employees, and we'll tell you exactly what applies rather than making you dig through state regulations yourself.
Tell us your state and setup — licensed agents will confirm requirements and build your quote, typically same business day.