I'll start with the honest part: I was underinsured for the first 5 years of my company. I had a $500k general liability policy because my agent told me it was enough. It wasn't. The first time I read a real loss case — kitchen fire, $1.2M damages, hood cleaner sued — I called my agent and tripled my coverage that week.
Here's what every hood cleaning company actually needs.
1. Commercial General Liability (CGL) — your foundation
This covers third-party bodily injury and property damage. The two scenarios that destroy hood cleaners:
- Your tech damages the kitchen during cleaning (drops a pressure washer, rips a duct, cracks a tile)
- A fire happens after your service and an investigator says cleaning was inadequate
Minimum coverage: $1M per occurrence / $2M aggregate. For chains and commercial accounts, you'll need $2M / $4M.
Cost: $1,500-3,500/year for a small company.
2. Workers Compensation — required by law
If you have even one W-2 employee, you need workers comp in nearly every state. Without it: massive fines, personal liability for medical bills, and you can't legally operate.
Hood cleaning is a high-risk class code. Roof access, hot water, slip hazards. Workers comp will cost 10-15% of payroll.
Tip: if your techs are 1099 independent contractors (legally true 1099s, not misclassified), you don't need WC for them. But the IRS rules are strict. Most "1099" hood cleaning techs are actually employees, and that misclassification will cost you triple if audited.
3. Commercial Auto — your personal policy doesn't cover work
If you drive to a customer site in a personal vehicle, your personal auto policy probably excludes commercial use. You're driving uninsured.
Get a commercial auto policy on every vehicle used for the business. Cost: $1,200-3,000/vehicle/year.
4. Professional Liability (Errors & Omissions)
This is the one most hood cleaners skip. CGL covers physical damage. Pro Liability covers cleaning-related claims — the customer says the work was inadequate, that's professional liability.
Most CGL policies exclude "your work" — meaning if the claim is about the quality of your service, CGL won't pay. You need a separate E&O policy or an endorsement.
Cost: $800-2,000/year for a small operation.
5. Equipment & Tool Coverage
Your $5,000 hot water pressure washer gets stolen out of your truck. CGL doesn't cover it. Commercial auto doesn't cover it (it covers the truck, not what's in it). You need inland marine or commercial property insurance.
Cost: $200-500/year. Cheap. Get it.
6. Bond (in some states)
Some states or cities require commercial cleaning bonds. Cost: a few hundred dollars/year. Check your local requirements.
What voids your insurance — read this
Insurance companies have ways out. Common ones:
- Inadequate documentation — if a fire happens and you can't prove you cleaned to NFPA 96, your carrier can deny.
- Working outside scope — if your policy is for hood cleaning and you start doing duct demolition, you're not covered for that work.
- Uncertified technicians on jobs that required certification — some commercial contracts require IKECA-certified techs. If yours weren't, claim denied.
- Misrepresenting your operations — telling the carrier you have 2 employees when you have 5 to lower your premium. They WILL find out at claim time.
What I pay now
For a 4-tech, 250-customer operation:
- $2M / $4M CGL: $2,800/year
- Workers comp on $180k payroll: $22,000/year
- Commercial auto (3 vehicles): $5,400/year
- Professional liability $1M: $1,400/year
- Equipment $25k: $400/year
Total: ~$32k/year. Sounds like a lot until you remember one fire claim is $1M+ and ends your business if you're underinsured.
Documentation is your insurance.
MCR System logs every job to NFPA 96 with photos, GPS, and signatures — so if a claim happens, you have proof. Free 30-day trial.
Try MCR System →— Darlan Posso, CEO, MCR System
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