Managing Janitorial Work Comp Risk During Growth

The janitorial industry is growing—but with that growth comes increased workers’ compensation risk. As cleaning companies expand their workforce and operations, they face higher exposure to workplace injuries, claims, and rising insurance costs.
Without the right risk management strategies, even steady growth can lead to higher premiums and reduced profitability.

Key Takeaways

• Growth in janitorial operations increases workers’ compensation exposure
• New hires are more likely to experience workplace injuries
• Claims frequency and severity can drive higher insurance costs
• Training and early intervention are critical to controlling losses
• Specialized insurance programs improve outcomes and cost control

Janitorial Industry Growth and Rising Risk Exposure

According to research from IBISWorld, the janitorial sector services revenue experienced a compound annual growth rate of 1.2% between 2018 and 2023. In 2023, revenue is expected to reach $90.1 billion.

A well-functioning society depends on janitorial services. This fact was made clear during the COVID-19 pandemic, when people paid more attention to cleaning processes. However, it doesn’t take a global pandemic for sanitation to matter. The janitorial sector provides critical services. As revenue and workforce size increase, janitorial companies also face greater workers’ compensation exposure and insurance complexity.

How Growth Increases Workers’ Compensation Risk

As the janitorial sector grows, workplace accident exposures may increase, too.

As a janitorial company becomes bigger and employs more people, the risk of workplace injuries increases. Keeping adequate levels of staffing, training new employees, and responding to incidents can also be more challenging.

New workers are especially vulnerable. The U.S. Bureau of Labor Statistics (BLS) expects 85,500 new positions for janitors and building cleaners between 2021 and 2031. Those 85,500 new workers will need to learn how to conduct janitorial and cleaning services safely.

Risks tend to be higher during the training period. The 2023 Travelers Injury Impact Report found that 34% of all workplace injuries occurred during the employee’s first year on the job. These injuries resulted in 7 million missed days of work. It makes sense – new workers simply don’t have the experience needed to avoid common mistakes that can lead to injuries. From an insurance perspective, rapid hiring and expansion can lead to higher claim frequency and increased premiums if risks are not properly managed.

 Common Workers’ Compensation Risks in Janitorial Operations

Janitorial workers face a wide range of workplace hazards that frequently lead to workers’ compensation claims. These exposures make risk management essential for controlling both claim frequency and insurance costs.

According to BLS, private-sector janitors and cleaners (excluding maids and housekeepers) experienced 21,200 nonfatal injuries and illnesses involving days away from work in 2020. The incidence rate per 10,000 full-time equivalent workers was 191.6. For comparison, the total incident rate for cases involving days away from work, job restrictions, or transfer per 10,000 full-time equivalent workers in all industries was only 170.

Janitors have physically-demanding jobs. There are many ways they can become injured. For example, they may:

• Hurt their backs lifting a heavy object or moving a piece of furniture.
• Trip over an object or slip on a puddle and be injured in the resulting fall.
• Encounter infectious material while cleaning, such as bodily fluids or used needles.
• Be exposed to hazardous materials and chemicals used in the cleaning process.
• Get caught in the middle of violence or crime while working after-hours.

These types of incidents often result in high-frequency, moderate-severity claims that can significantly impact a company’s experience modification rate (ex-mod) and long-term insurance costs.

New workers are especially vulnerable to workplace injuries, particularly during their first year on the job. Without proper training and supervision, these employees are more likely to contribute to workers’ compensation claims, increasing overall loss costs.

How to Reduce Janitorial Workers’ Compensation Costs During Growth

Controlling workers’ compensation costs during periods of growth requires a proactive approach. This includes implementing structured training programs, maintaining consistent safety protocols, and responding quickly to incidents. Organizations that actively manage claims and invest in risk control strategies are better positioned to maintain stable premiums as they scale.

Risk Management Strategies to Control Workers’ Compensation Costs

Janitorial companies must actively manage workers’ compensation exposure to control claims, reduce costs, and maintain insurability during periods of growth.

•  Prevent incidents whenever possible by implementing safety protocols that reduce claim frequency and workplace injuries.
•  Mitigate losses with a prompt response, such as nurse triage programs, to reduce claim severity and control medical costs.

Without effective risk management, increased hiring and operational growth can quickly lead to higher workers’ compensation premiums and reduced profitability.

Control Workers’ Compensation Risk as You Grow

Growth in the janitorial industry creates opportunity—but also increased exposure to workplace injuries and rising insurance costs. Without the right strategy, these risks can impact profitability and long-term stability.

Tangram Insurance Services specializes in janitorial and building services, offering tailored workers’ compensation programs, risk management support, and claims solutions designed for high-growth operations. Explore our Janitorial and Building Services Program to learn how we can help you control risk and scale with confidence.

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