Do You Need Workers' Comp?
Workers' compensation requirements vary by state, but most states require coverage as soon as you hire your first employee. Texas is the only state where private employers can opt out entirely. Even in states with exemptions for very small employers, carrying workers' comp is strongly recommended — a single workplace injury without coverage could bankrupt your business.
What Workers' Comp Covers
Workers' compensation covers medical expenses, lost wages, and rehabilitation costs when an employee is injured on the job. For cleaning workers, common claims include:
- Slip and fall injuries (consistently one of the top claims in the industry)
- Repetitive motion injuries (carpal tunnel, shoulder issues)
- Chemical exposure and burns
- Back injuries from lifting and bending
- Vehicle accidents during work travel
How Premiums Are Calculated
Your premium is based on your state's rate for janitorial services (typically NCCI class code 9014), multiplied by your total payroll in hundreds of dollars, then adjusted by your experience modification rating (EMR). A clean claims history lowers your EMR, which can significantly reduce your premium over time.
Ways to Lower Your Premium
- Implement a formal, documented safety program
- Report all injuries promptly and manage claims with return-to-work programs
- Consider pay-as-you-go plans that base premiums on actual payroll (helpful for seasonal fluctuations)
- Shop multiple carriers — rates can vary significantly between insurers
- Ask about group or association discounts through industry organizations like ISSA or BSCAI
What Happens Without Coverage
Operating without required workers' comp is a serious offense in most states. Penalties vary but can include fines, criminal charges, and personal liability for all employee injury costs. Check your state's specific requirements through your state's workers' compensation board or department of labor website.
