What are supplemental home services?

A home is so much more than a house. When the pandemic drove us to spend even more time inside our homes, many of the duties we may have previously outsourced became our own again. But as we re-surface post-pandemic, returning to the office and eagerly socializing out of the home,  we find ourselves once again looking to supplemental home service providers to help with things like cleaning our house and caring for our new canine companions.

Properly functioning plumbing, electricity, and regular trash removal would be examples of essential services. The term “supplemental home services” refers to additional services that improve the functionality and maintenance of a home beyond its essential needs, usually for a fee. For example, services like house cleaning, carpet cleaning, or dog grooming would provide enhancement or upkeep of the house and/or household.

In this post, we will spotlight the growth, risks, and need for self-employed insurance for service providers. Examples of such services include janitorial services (such as window cleaning, carpet and upholstery cleaning, floor care, maid services, etc.), pet care (such as boarding, grooming, training, etc.), and childcare service industries. These are a few of the “tent pole” occupations driving growth in supplemental home services. 

Here are a few noteworthy statistics for these occupations that highlight the vast opportunities for entrepreneurs in these occupations and for agents offering self-employed insurance for service providers: 

• According to a recent report by ResearchandMarkets, the U.S. pet grooming and boarding market was worth $10.22 billion in 2023.
• The residential cleaning services industry had a market size of $13 billion in 2023 (IBIS World). As a recent Upmetrics analysis pointed out, “Interestingly, no company in the U.S. [in this market] has a market share concentration of more than 5%. It’s an opportunity for new-age entrepreneurs to venture into this market by establishing their residential cleaning business.” 
• The analysis continued with “There are nearly 1,200,270 cleaning businesses in the US. [in 2023]. These are independent businesses offering janitorial services to their industrial, residential, and commercial clientele. Interestingly, only 10% of the commercial cleaning business revenue comes through franchise businesses.” 

First, we will examine why supplemental home services are growing. Then we’ll analyze the growth and the opportunities it represents for entrepreneurs in the field and the agents that serve them with self-employed insurance for service providers. Finally, we will share some tips for agents looking to grow their business in these niches.

Some also consider personal care services like elder and home health care and personal aides to be supplemental home services. However, for purposes of this post, we will not discuss these verticals, simply because their associated risks are markedly different, much more complex, and require a separate, deep analysis. But it is worth noting that elder care, home health, and personal aides are experiencing viral growth. According to the U.S. Bureau of Labor Statistics,  “The two industries that provide care in home and community-based settings together accounted for 4.3 million jobs in July 2024, considerably higher than the 3.3 million jobs in the industries that provide care in institutional settings.” This could be in part due to an aging U.S. population, approximately 17% of which is 65 and older. 

Factors that have contributed to growth

Several factors have driven the growth of key industries ranging from home cleaning services and pet grooming to the expanding side hustle market, which has amplified the demand for insurance for home service providers.

Increased focus on cleaning since COVID-19

The renewed emphasis on the importance of cleaning and hygiene has fueled the growth of the janitorial industry. Overall, the cleaning processes and standards for hygiene were heightened societally during the pandemic. New behaviors and cleaning practices that were normalized as ways to combat the spread of disease are now continuing post pandemic. In fact, according to the American Cleaning Institute (ACI), “A national online consumer survey conducted by Ipsos on behalf of ACI (in 2021) showed that 85% of respondents are very or somewhat likely to maintain the same level of cleaning practices initially adopted in March 2020, even when the pandemic [has] passed.”

Implementation of return-to-office mandates

Return-to-office (RTO) mandates and policies requiring employees to work in the office rather than remotely are emerging across the country as the pandemic has eased. With more workers returning to the office either part- or full-time, they are reprioritizing how they spend their time at home. The result is that those who might have cleaned the pool or carpet themselves during the pandemic, are now outsourcing this work.

In a recent interview with Lilia Soares, AVP of Digital Marketing with AmTrust Financial Services, she commented on this trend, “Janitorial services has been a fast-growing industry. A lot of people are returning to the office leaving house chores behind. Doing said chores during lunch and breaks is no longer an option. So, it makes sense that janitorial services are a growing industry. Plus, who doesn’t like to walk into a clean house!”

The pet industry is another space that aligns well with the return-to-office trend. Companies that offer short-term day boarding services stand to benefit particularly well. According to the U.S. Bureau of Labor Statistics, “In 2024, pet boarding services generated the most revenue [within the pet services industry], followed by grooming, sitting and dog walking, and training.”

The dust hasn’t settled on RTO, so early data isn’t available on how it relates to working parents and their need to supplement childcare. There was a general downward trend in home-based childcare vs. licensed childcare that started pre-pandemic and has continued. To clarify, home-based childcare is usually within a private home, supervised by a single caregiver, and includes a smaller group of children. Licensed centers operate in a dedicated facility, usually with a larger enrollment and number of caregivers. With a decrease in available home-based daycares, it might follow that licensed daycares step in to fill the needs as the needs rise. To this point, according to recent data provided by the Child Care Aware of America, in 2023, the number of licensed childcare centers have rebounded to pre-pandemic levels with a slight increase from 2022-2023.

Pandemic pet purchases

According to the National Pet Owner Survey, “the overall number of pet-owning U.S. households has increased steadily over time. In 2010 it was estimated that 46 million households owned a dog, [and] 39 million a cat. In 2024, those numbers have increased, 58 million for dogs and 40 million for cats.” There are myriad reasons why so many households acquired pets during the pandemic. Whatever the reasons, these new pet owners have spent and continue to spend a considerable amount of money on pet goods and services, giving the pet industry a significant economic boost. Pets need training, boarding, grooming, walking, and vet care. This, coupled with socio-economic factors like an increased cultural awareness of animal safety and higher disposable income, makes this industry primed for more growth.

Side hustlers

The “side hustle” became a household term during the pandemic. This trend is here to stay, and the supplemental home services category is part of that trend.

Many of the entrepreneurs who are now taking advantage of the trends cited might have full-time jobs and maintain supplemental home services businesses as a source of secondary income. Many also share a passion for the work as well. And some of the army of new part-time service providers like dog groomers, walkers, and house cleaners have been able to do so because of the increased flexibility of work location and hours that emerged during the pandemic. However, whether the job is a side hustle or the primary source of income, these entrepreneurs need protection and support, including self-employed insurance for service providers.

Projected growth

These key supplemental home services that got a boost during the pandemic are showing no signs of slowing, and in fact, show signs of continued growth.

A continued boom for animal care and services

The U.S. Bureau of Labor Statistics projects a 15% growth in overall employment of animal care and service workers from 2023 to 2033 (much faster than the average for all occupations). As these “pandemic pets” get older, they will require more specialized care, which will contribute to the job market growth. 

In terms of market value growth, “The pet services market is expected to grow to $10,223.8 million by 2030, with a CAGR of 7.7% from 2024 to 2030,” according to a recent report by Grand View Research. These projections point to a continued boom in pet services for the foreseeable future.

Cleaning services market growth

Speaking to continued market value growth expectations in the cleaning industry, Upmetrics released a recent report projecting that “the U.S. janitorial services industry is expected to report a 6% annual growth till 2030.” The same report states, “Nearly 80% of the two-income households in the U.S. will use professional cleaning services in the next 2 years. As of 2022, 10-12% of U.S. households paid a professional to avail of the house cleaning services.” These estimates point to continued growth expectations in janitorial services. Intuitively, this makes sense as culturally it is clear that our increased emphasis on cleanliness and hygiene is here to stay five-plus years after COVID-19.

Tips when advising supplemental home services businesses about self-employed insurance for service providers

Entrepreneurs in the supplemental home services industry are very similar to others in that they need proper insurance protection. However, they also have unique, industry specific needs. Here are a few important considerations to keep in mind when advising them about how to safeguard their investments with self-employed insurance for service providers:

Take the time to understand their business

There are inherent risks for entrepreneurs who operate in multiple homes or locations daily. For instance, a residential cleaner might visit five different sites per day. The same might be true for a mobile pet groomer or dog walker. It’s important to take a deep dive into their business to understand how and where they provide services. Soares advises agents to uncover the “vehicular exposure traveling to and from various job sites and any uncontrolled work environments. [Furthermore], many business owners will want to do ‘more’ for the client. The ‘more’ isn’t always covered by insurance, leading to increased risk.” Agents who understand all the potential risks based on the business’ unique profile will stand out as trusted advisors to their customer’s success.

Discuss the importance of securing additional protection with self-employed insurance for service providers

Entrepreneurs might be tempted to obtain only foundational insurance products like general liability. But it’s important to educate your clients on all the additional products available to create a comprehensive plan. For example, Soares discusses the need for cyber coverage, which is “no longer a nice to have – it’s a need to have. Hackers are no longer methodically targeting large companies. They’re going after anyone with a cyber footprint. If [the business owner] has an email address, they should have cyber coverage. The insurance industry has evolved in this area over the past few years, but there needs to be more awareness around this line of business – both from the agent and the insured perspective.” A self-employed insurance for service providers package that is tailored to the unique risk profile for the business will include products like cyber, commercial auto, or inland marine to make sure it’s comprehensive.

Share cost savings tips

There are several tactics to share with your customer to help them save money. Many carriers offer discounts for bundling or incentives for safety training. Share these tips with your customers. Additionally, as an agent, we would recommend that you gather multiple quotes from multiple carriers. Carriers’ appetite changes so taking the time to shop around will benefit your customers financially.

Greater opportunities, bigger risks, increased need to secure self-employed insurance for service providers

The pandemic spurred a wide range of economic, social, and cultural changes that have caused the supplemental home services industry to boom. Within this industry, janitorial services and pet care service businesses have seen higher-than-average growth, while childcare services have rebounded from pandemic era decreases.

Now, post-COVID, industry research points to a continuation of the growth trend in these supplemental home services sub-industries. The millions of new “pandemic pets” will continue to need services like boarding and, particularly as they age, vet care.  RTO will necessitate pet services like dog walking and grooming. The increased emphasis on hygiene is here to stay and will continue to spur janitorial services. RTO will do so as well. 

Entrepreneurs seeking to take advantage of these trends in supplemental home services need proper insurance protection. Agents who understand the unique needs of business owners operating in these spaces will be poised to gain business as well by optimally packaging self-employed insurance for service providers.

Wondering how to start? Click below to download a convenient list of questions to consider when discussing coverage with entrepreneurs in the supplemental home services industry.