Can’t Get Workers Comp for Your Cleaning Crew? Here’s the Secret Hack Pros Use | WIMC

May 5, 2025

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Can’t Get Workers Comp for Your Cleaning Crew? Here’s the Secret Hack Pros Use

Starting and growing a cleaning business can feel like a dream come true. You’re your own boss, you build your own schedule, and you get the satisfaction of knowing you’re providing an essential service. But then reality hits hard when you realize that protecting your team with workers compensation insurance isn’t just a nice idea—it’s a legal and financial necessity.

Yet, if you’ve been in the trenches trying to get workers comp coverage for your cleaning crew, you probably already know it’s not as easy as it should be. In fact, many insurance companies turn away cleaning businesses or offer outrageous quotes that make it almost impossible to stay profitable.

If this sounds familiar, you’re in the right place. Keep reading, because today you’re going to discover the secret hack that seasoned pros use to lock in solid workers comp coverage without draining their bank accounts.

Why Workers Compensation Insurance Is Non-Negotiable

Before we dive into the "hack," it’s crucial to understand why workers compensation insurance is absolutely critical for your cleaning business.

Workers comp isn’t just another expense to grumble about. It’s a legal requirement in almost every U.S. state if you have employees. It protects your workers if they get injured or sick due to job-related activities. Think of slips on wet floors, exposure to harsh chemicals, or muscle strain from repetitive tasks like vacuuming or scrubbing floors.

Without workers comp, you’re on the hook for medical bills, rehabilitation costs, and even lost wages. And that’s just the beginning. If an injured worker sues you, you could lose your business, your savings, and everything you’ve worked so hard to build.

The Brutal Truth: Why Cleaning Businesses Struggle to Get Workers Comp

Here’s the deal—insurance companies don’t love cleaning businesses. From their point of view, cleaning companies are high-risk clients. Why? It all comes down to the nature of the work. Cleaning involves physical labor, repetitive motion, exposure to chemicals, and a whole lot of moving around in unfamiliar environments.

Insurance companies look at cleaning crews and see endless possibilities for injury. They know claims could be frequent and costly, so they either decline coverage altogether, jack up the prices sky-high, or add a mountain of restrictions and exclusions to your policy.

If you’ve been rejected or quoted a ridiculous premium, you’re not alone. Thousands of cleaning business owners hit this same wall every year—and many give up, operating illegally or without the right coverage, putting everything they have at risk.

Common Mistakes Cleaning Business Owners Make When Shopping for Workers Comp

It’s frustrating. You know you need the coverage. You’re willing to pay for it. But doors keep slamming in your face. Sometimes the problem isn’t you—it’s the approach. Most business owners make critical mistakes that cost them dearly.

One big mistake is approaching traditional insurance brokers who specialize in office jobs, retail businesses, or light-risk industries. They simply don’t understand the cleaning industry, and they often don’t have access to specialized programs that can help you.

Another mistake is not classifying your workers properly. Are they employees or independent contractors? This makes a massive difference in how your risk is calculated. Incorrect worker classification can lead to higher premiums—or even policy cancellations.

Finally, many cleaning business owners fail to shop around. They get discouraged after a couple of rejections and settle for bad terms, missing out on better options that could save them thousands of dollars a year.

Here’s the Secret Hack: Partner With a Professional Employer Organization (PEO)

Now, here’s the part you’ve been waiting for—the insider secret that successful cleaning business owners use when they can’t get workers comp on their own. They don’t beat their heads against the wall trying to beg traditional insurance carriers for a break. Instead, they partner with a Professional Employer Organization, or PEO.

A PEO is basically a company that co-employs your workers. You still control day-to-day operations, but legally, your workers are also employees of the PEO. This is a game-changer because PEOs have access to massive, national workers comp insurance pools that small businesses could never touch alone.

Because they represent hundreds or thousands of employees across many industries, PEOs can negotiate lower rates, better coverage, and fewer exclusions. They absorb the administrative headache of workers comp claims, payroll, and compliance, letting you focus on growing your business.

How Partnering With a PEO Works Step-by-Step

When you partner with a PEO, you enter into a co-employment agreement. That might sound intimidating, but it’s actually simple. You continue to hire, train, and manage your cleaning crew exactly like you do now. The PEO simply becomes the "employer of record" for purposes of workers comp insurance, payroll taxes, and benefits administration.

They bundle your workers comp coverage into your service package. You’ll pay a simple, transparent fee—usually a small percentage of your total payroll. The PEO takes care of workers comp claims, helps you with OSHA compliance, and sometimes even provides HR support and training programs to minimize accidents and injuries.

In many cases, this can slash your insurance costs by 30% or more compared to going it alone. Plus, you avoid the nightmare of audits, compliance fines, and unexpected premium increases.

What to Look for When Choosing a PEO for Your Cleaning Business

Not all PEOs are created equal. Some specialize in tech companies, law firms, or other white-collar industries. You need a PEO that understands the unique risks and needs of a cleaning business.

Look for a PEO that has experience working with blue-collar industries. Ask specifically whether they have cleaning companies in their client roster. Make sure they offer true workers comp coverage and not just an alternative program that doesn’t meet state legal requirements.

Check if they provide additional safety training or resources to help lower your risk profile over time. The best PEOs become true partners in your success, not just vendors trying to collect a monthly fee.

The Hidden Bonus: How a PEO Can Help You Grow Your Cleaning Business

Once you’ve solved your workers comp nightmare through a PEO, something amazing happens—you’re free to focus on scaling your business without constantly worrying about legal exposure.

You can hire more cleaners without stressing over whether you’ll be able to afford the insurance. You can bid on bigger contracts that require proof of full workers comp coverage. You can market yourself as a legitimate, professional operation that cares about its employees and plays by the rules.

In short, you can stop playing small and start thinking bigger.

Some PEOs even offer recruitment support, employee handbooks, and performance management tools that help you build a more professional, reliable, and motivated team. That’s the kind of advantage that separates fly-by-night operations from six- and seven-figure cleaning empires.

What Happens If You Ignore Workers Comp Requirements?

It’s tempting to cross your fingers and hope nothing happens, especially if you’re running a small crew or just getting started. But that’s a ticking time bomb.

Operating without workers comp insurance when it’s legally required can result in huge fines, lawsuits, and even criminal charges. One serious injury could bankrupt you overnight.

Even if your state doesn’t strictly require workers comp for small businesses, you still face enormous risks without it. Medical bills for a single injury can run into tens of thousands of dollars. Worse, an injured worker could sue you personally, and without insurance, you’d have no defense.

Smart business owners treat workers comp like rent, utilities, and salaries—a non-negotiable cost of doing business.

Real-Life Success Story: How One Cleaning Company Turned It Around

Consider the story of Amanda, who owns a small commercial cleaning business in Texas. She struggled for months trying to get workers comp coverage. Traditional insurers either rejected her outright or quoted rates that would have eaten up almost half her monthly profits.

Amanda stumbled across the idea of partnering with a PEO. She did her research, found a reputable firm that specialized in high-risk industries, and signed up. Within a month, she had full workers comp coverage, HR support, and even a risk management consultant helping her crew stay safe on the job.

Two years later, Amanda’s business has tripled in size. She now employs 18 cleaners, services major office complexes, and sleeps easy at night knowing she’s fully protected.

Take the Leap: Protect Your Cleaning Business Today

If you’re serious about building a cleaning business that lasts, you can’t afford to play games with workers comp coverage. The risks are too high. The rewards of getting it right are too sweet to ignore.

Stop spinning your wheels with traditional insurers who don’t understand your industry. Stop worrying about whether you’ll survive a single injury claim. Use the secret hack the pros use—partner with a PEO—and turn your insurance problem into a competitive advantage.

Workers comp doesn’t have to be a nightmare. With the right strategy, it can actually fuel your growth and give you the freedom to dream bigger than ever before.

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