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In the insurance industry, cleaning businesses are a very popular risk to insure. Sadly not many insurance agents know how to properly assess this industry. Many business owners find the questions they get from insurance agents to be rather nerve wracking. So allow me to help you! I have answered 9 questions to give cleaning business owners some insight on what insurance agents are looking at when they determine whether or not to insure a cleaning business.
Although both types of operations are centered around cleaning, the risks are significantly different. For residential cleaning, the employees more frequently are traveling to several different homes in a typical work day, and can encounter more potential risks for injuries including dogs, an auto accident, etc. Most insurance carriers want to know accurate information on the work your company is doing.
Some BOP policies will exclude coverage for residential cleaning work if your company claims it is only commercial. Depending on the time of year, that number can change. An insurance carrier mainly wants to have a good idea of the number of employees it will be covering on the policy. Otherwise, the insurance company only uses this information as a good indicator of the type of cleaning work your company does.
If no voluntary market is willing to offer a quote to your company, your state offers a workers compensation insurance fund. Your company should always have a safety program policy in writing and posted where your employees can see it.
The obvious safety measures that should be taken include use of rubber or latex gloves as well as the use of safety glasses and respiratory masks. I also recommend every cleaning company have a motor vehicle records MVR program in place. You should check the driving records of your employees at hire and annually. This not only helps you catch some potential bad hires, but can go a long way toward keeping your employees honest while they are driving their cars on your work time.