If you own a janitorial company, you’ve probably noticed that insurance has become more expensive over the last few years. Workers’ compensation rates aren’t necessarily skyrocketing across the board—but many cleaning contractors are still seeing higher premiums, more underwriting questions, and fewer carrier options.
So what’s changed?
The answer isn’t just the market. It’s how insurance companies are evaluating janitorial businesses today.
Claims Frequency Matters More Than Ever
Janitorial work may not seem as hazardous as construction, but insurance carriers know that cleaning crews face daily injury risks.
The most common workers’ compensation claims include:
- Slip and fall injuries
- Back strains from lifting equipment or supplies
- Shoulder injuries from repetitive motion
- Chemical exposure
- Cuts from broken glass or sharp objects
Even several small claims can have a significant impact on your experience modification factor (Ex-Mod), making your company appear riskier than competitors.
The Biggest Mistakes We See
Many janitorial contractors unknowingly increase their insurance costs by making avoidable mistakes.
Some of the most common include:
- Waiting until renewal to shop coverage
- Failing to review payroll classifications
- Not documenting employee safety training
- Hiring too quickly without proper onboarding
- Allowing claims to remain open longer than necessary
These issues can affect pricing far more than many business owners realize.
Insurance Companies Want Well-Managed Businesses
Today, underwriters aren’t simply looking at payroll and claims.
They’re evaluating how your company operates.
Questions they often ask include:
- Do you have written safety procedures?
- How are new employees trained?
- Are supervisors conducting jobsite inspections?
- Do employees have access to proper PPE?
- How do you respond after an injury?
Strong answers can make a meaningful difference during underwriting.
Your Ex-Mod Is One of Your Most Valuable Assets
Many janitorial companies don’t realize how much money their Ex-Mod can cost—or save—them.
For larger employers, improving an Ex-Mod by just a few tenths can reduce workers’ compensation costs by tens of thousands of dollars annually.
If your Ex-Mod has increased recently, it’s worth reviewing:
- Open claims
- Reserve accuracy
- Payroll classifications
- Claims that may qualify for closure
We’ve found savings simply by identifying errors or outdated reserves on claim files.
Start Preparing Before Renewal
One of the biggest advantages you can give yourself is time.
We recommend beginning the renewal process at least 90 to 120 days before your policy expires.
That allows enough time to:
- Review current pricing
- Analyze loss runs
- Correct payroll issues
- Market your account to multiple carriers
- Negotiate better terms
Waiting until the last few weeks before renewal limits your options and reduces negotiating leverage.
Final Thoughts
The janitorial industry continues to grow, but insurance companies have become much more selective.
Businesses that prioritize safety, maintain accurate payroll records, and actively manage claims consistently receive better insurance results than those that simply renew each year.
Workers’ compensation shouldn’t be treated as just another bill. It should be managed as part of your overall business strategy.
If you’d like a complimentary review of your current workers’ compensation program, Goldbridge Insurance Services can analyze your policy, review your loss history, and identify opportunities to reduce your long-term insurance costs—often without changing the way you operate.
Call (888) 590-2667 or email info@goldbridgeins.com.
Goldbridge Insurance Services · 15840 Ventura Blvd, Suite 203, Encino, CA 91436
