Looking to hire a commercial cleaning company in Canada? Understanding their insurance requirements is essential to protecting your business. Whether you’re evaluating cleaning service providers or ensuring your own cleaning company meets industry standards, this comprehensive guide covers everything you need to know about liability coverage, bonding, and workers’ compensation in Canada.

Why Insurance Matters When Hiring Cleaning Services

Commercial cleaning involves more risk than many business owners realise. When cleaning crews access your facilities, handle your property, use specialised chemical products, and interact with your staff, they expose your business to several types of liability.

Without proper insurance and bonding, a single accident could result in financial liability for thousands of dollars:

• A slip and fall injury on a wet floor
• Damaged equipment or property
• Stolen items by cleaning staff
• Chemical damage to surfaces or materials

In Canada, nearly 30,000 commercial cleaning businesses operate across the country, and most professional clients require proof of insurance before hiring. This isn’t just best practice—it’s increasingly a contractual requirement for securing government contracts, corporate clients, and property management agreements.

7 Essential Insurance Types for Cleaning Companies

1. General Liability Insurance (CGL)

General Liability Insurance is the foundation of any cleaning business’s insurance package. This coverage protects against claims related to third-party bodily injury and property damage.

What CGL Covers:

• Slip-and-fall injuries during cleaning operations
• Damage to client property caused by employees or cleaning methods
• Legal defence costs if sued
• Medical expenses and court judgments

Recommended Coverage: Most policies start at $1,000,000, but industry standards recommend at least $2,000,000. For government or large corporate contracts, clients may require $5,000,000 to $10,000,000 in coverage.

Cost in Canada: $400-$1,500 annually, depending on business size and coverage limits.

2. Workers’ Compensation Insurance

Workers’ compensation is legally mandatory across Canada. Every province requires cleaning companies with employees to register with their provincial workers’ compensation board.

Cost Structure: Calculated as a percentage of payroll. In Ontario, the average rate for 2026 is $1.23 per $100 of insurable payroll—the lowest in over 50 years. For a cleaning company with five employees earning $35,000 annually, total workers’ compensation costs would average around $1,073 per year.

3. Janitorial Bonding (Fidelity Bond)

A janitorial bond protects clients if employees steal from their property. While not always legally required, it’s increasingly expected by professional clients.

What Bonding Covers:

• Employee theft of client property, equipment, or money
• Coverage typically ranges from $10,000 to $25,000 per bond
• Claims paid directly to the client if theft occurs

Cost: $100-$250 annually for small to mid-sized cleaning companies.

4. Pollution Liability Insurance

Cleaning products contain chemicals that, if mishandled, can damage property or contaminate environments. Pollution liability insurance covers costs associated with chemical accidents on client premises.

This coverage is especially important for:

• Industrial-strength cleaning chemicals
• Healthcare facility cleaning
• Food service area cleaning
• Hazardous material cleanup

5. Professional Liability Insurance (Errors & Omissions)

This coverage protects against claims that cleaning services failed to meet professional standards, resulting in client loss. If inadequate cleaning led to health code violations or business disruption, this coverage applies.

6. Commercial Auto Insurance

If the cleaning company uses vehicles to transport equipment, staff, or materials, commercial auto insurance is mandatory. Personal auto insurance does not cover business use.

7. Contents and Equipment Insurance

Protects the cleaning company’s own equipment—vacuum cleaners, floor buffers, pressure washers, and specialised tools—against theft, damage, or loss.

Bonding vs Insurance: Understanding the Difference

Many business owners confuse bonding with insurance. They serve different purposes:

Both are essential for professional cleaning operations. Insurance protects the cleaning business; bonding protects clients.

Workers’ Compensation Requirements by Province

Each Canadian province has specific workers’ compensation requirements:

Ontario (WSIB)

• Mandatory for all cleaning companies, including solo operators
• Average rate: $1.23 per $100 of payroll (2026)
• Clients often require WSIB clearance before hiring
• Contact: www.wsib.ca

British Columbia (WorkSafeBC)

• Mandatory for all employers
• Registration required within 15 days of hiring
• Clearance letters available through WorkSafeBC
• Contact: www.worksafebc.com

Alberta (WCB Alberta)

• Mandatory registration required
• Registration within 15 days of first employee hire
• Contact: www.wcb.ab.ca

Quebec (CNESST)

• Mandatory for virtually all employers
• Contact: www.cnesst.gouv.qc.ca

Important: In British Columbia and other provinces, if you hire an unregistered cleaning contractor whose employee is injured, you can be held liable for all their medical costs and lost wages claims.

Common Hiring Mistakes That Lead to Insurance Claims

Mistake #1: Choosing Based on Price Alone

The most common error is hiring the cheapest cleaning service. Companies that undercut competition typically cut corners on insurance, staff training, and product quality. A provider with only $500,000 in liability coverage leaves you exposed if something goes wrong.

Solution: Request proof of insurance before signing any contract. Compare value, not just price.

Mistake #2: Not Verifying Insurance Coverage

Approximately 20-30% of cleaning companies operate with inadequate or no insurance. Simply asking “Do you have insurance?” isn’t sufficient—you need proof.

Solution: Request a Certificate of Insurance showing minimum $2,000,000 general liability coverage with your company listed as “additional insured.”

Mistake #3: Failing to Check Workers’ Compensation Registration

If you hire an unregistered cleaning contractor whose employee is injured on your premises, you could be held liable for all claims.

Solution: Request a WorkSafeBC Clearance Letter (BC) or WSIB clearance (Ontario) before hiring.

Mistake #4: Not Verifying WHMIS Training

The Workplace Hazardous Materials Information System (WHMIS) is mandatory training for workers handling chemicals. Ontario is conducting targeted inspections through March 2026.

Solution: Confirm all cleaning staff have current WHMIS certification.

Mistake #5: Overlooking Bonding for Employee Theft

Many property managers have experienced theft by cleaning staff. A bonded company shifts this risk to the surety bond, not to you.

Solution: Verify bonding is current and coverage matches the value of items in your facility.

How to Verify a Cleaning Company’s Insurance

Use this checklist before signing any commercial cleaning contract:

Before Signing:

• Request proof of General Liability Insurance (minimum $2M)
• Verify Workers’ Compensation registration/clearance
• Confirm Janitorial Bonding is active
• Ask about WHMIS training for all staff
• Get written scope of work and cleaning checklist
• Request 2-3 business references in your industry
• Schedule an on-site walkthrough
• Clarify pricing structure (hourly, flat-rate, or hybrid)
• Negotiate a 1-month trial period

Questions to Ask:

• How often do you provide staff training and safety briefings?
• What cleaning products do you use? Are they eco-friendly?
• How do you handle customer complaints or service issues?
• How long have your management staff been in the cleaning industry?
• What certifications does your team hold?

Frequently Asked Questions

How much does commercial cleaning insurance cost in Canada?

General liability insurance typically costs $400-$1,500 annually. Workers’ compensation averages $1.23 per $100 of payroll in Ontario. Janitorial bonding costs $100-$250 per year. Total annual insurance costs for a small cleaning company average $4,500-$6,600.

What insurance should a commercial cleaning company have?

At minimum, cleaning companies should carry General Liability Insurance ($2M+), Workers’ Compensation (mandatory), and Janitorial Bonding. Additional coverage may include pollution liability, professional liability, and commercial auto insurance.

Is bonding the same as insurance for cleaning companies?

No. Insurance protects the cleaning company from lawsuits and liability. Bonding protects clients from employee theft. Both are important—insurance covers accidents, bonding covers theft.

What is workers’ compensation clearance?

A clearance letter confirms that a cleaning company is registered with the provincial workers’ compensation board and has paid their premiums. In Ontario, this is WSIB clearance; in BC, it’s a WorkSafeBC Clearance Letter.

Can I be held liable if an uninsured cleaner is injured on my property?

Yes. In provinces like British Columbia and Ontario, if you hire an unregistered contractor whose employee is injured, you can be held liable for all medical costs and lost wages. Always verify workers’ compensation registration.

What questions should I ask before hiring a cleaning company?

Ask for proof of insurance ($2M+ liability), workers’ compensation clearance, bonding certificate, WHMIS training verification, references, and a detailed written scope of work. Request a trial period before signing long-term contracts.

How do I verify a cleaning company’s insurance?

Request a Certificate of Insurance directly from the company. Verify your company is listed as “additional insured.” For workers’ compensation, request a clearance letter from their provincial board (WSIB, WorkSafeBC, etc.).

What is WHMIS certification?

WHMIS (Workplace Hazardous Materials Information System) is mandatory training for workers handling chemicals. It covers safe handling, storage, and disposal of hazardous materials. All cleaning staff should have current certification.

Conclusion

Understanding commercial cleaning insurance requirements protects your business from unnecessary liability. When hiring a cleaning service, always verify their insurance coverage, workers’ compensation registration, and bonding status before signing any contract.

A properly insured and bonded cleaning company demonstrates professionalism and commitment to protecting both their business and their clients. The small investment in verification upfront can save thousands in potential claims.

Looking for a fully insured and bonded commercial cleaning company in Canada? Contact GoodCleaner today for a free quote. We carry comprehensive insurance coverage and are happy to provide proof of insurance upon request!