You finally grew your solo cleaning business enough to consider buying a franchise like Molly Maid or MaidPro. You get the Franchise Disclosure Document (FDD), flip to the insurance section, and your jaw drops. They require $2 Million limits, Commercial Auto, and an Umbrella policy. You are currently paying $400/year for coverage; the franchise estimate is $4,000.
Key Takeaways
- Mandatory Minimums: Franchises demand higher limits (usually $2M aggregate) to protect the corporate brand, not just you.
- Commercial Auto is the Killer: As a solo, you likely use your personal car (risky). Franchises require full Commercial Auto insurance for all branded vehicles, which costs 3x more.
- Workers Comp is Non-Negotiable: Even if you are an “owner-operator,” franchises often mandate Workers Comp to avoid misclassification lawsuits.
- Umbrella Policies: You will likely need a $1M Umbrella policy on top of everything else.
The “Why” (The Trap): Brand Shielding
Why does a franchise force you to spend so much? Vicarious Liability.
If your branded car hits a pedestrian, the lawyer doesn’t just sue “Jane’s Cleaning LLC.” They sue “Molly Maid Corporate.” The franchise agreement forces you to buy massive insurance and name the Corporation as an “Additional Insured” so their policy never gets touched. You are effectively paying to insure the mothership.
The Investigation: Solo vs. Franchise Costs
I compared the real-world premiums for a 3-person crew in 2026.
1. The Independent Route (Next Insurance)
- Coverages: GL ($1M), minimal Tools coverage.
- My Quote: ~
55/month(55/month(660/year). - Gap: No commercial auto (using personal), no workers comp (risking it).
2. The Franchise Requirement (Molly Maid Specs)
- Coverages: GL (
2M),CommercialAuto(2cars),WorkersComp,FidelityBond(2M),CommercialAuto(2cars),WorkersComp,FidelityBond(50k), Umbrella ($1M). - My Quote: ~
450/month(450/month(5,400/year).
3. The “Preferred Vendor” Discount
- My Analysis: Franchises often have negotiated rates with carriers (like Marsh or Gallagher).
- Verdict: You pay more total, but you get better coverage per dollar than buying these policies on the open market.
Comparison Table: Annual Insurance Spend
| Coverage | Independent Cleaner | Franchise Owner |
| General Liability | $500 | $900 |
| Commercial Auto | $0 (Personal Auto risk) | $2,500 |
| Workers Comp | Optional (State dependent) | $1,500 |
| Umbrella | $0 | $500 |
| Total | ~$500 | ~$5,400 |
[IMAGE: Chart showing the ‘Insurance Stack’ required by major cleaning franchises]
Step-by-Step Action Plan
- Read the FDD Item 8: This section details exactly who you must buy insurance from. Can you shop around, or must you use their broker?
- Quote Commercial Auto First: Before signing, get a quote for the fleet insurance. In 2026, auto rates are skyrocketing. This could break your business plan.
- Factor into Pricing: You cannot charge “Craigslist prices” with “Franchise expenses.” You must charge
50−50−70/hour to cover this premium. - Audit Your Current Coverage: If you stay independent, consider upgrading anyway. Being underinsured is a ticking time bomb.
FAQ Section
Why do I need Commercial Auto if I use my own car?
Because if you crash while driving to a client, your personal insurance (“Geico”) will deny the claim because you were “using the vehicle for business.”
Can I get a waiver for Workers Comp if I have no employees?
Some franchises allow this for “owner-operators,” but most forbid it because they don’t want the legal risk if you get hurt.
What is an ‘Umbrella’ policy?
It kicks in when your main policy runs out. If you have a $1M lawsuit and $1M coverage, the Umbrella pays the legal fees so you don’t go bankrupt.