If you own a cleaning business, it is important to be familiar with surety bonds because, although they are not required, one of the first things a client will likely want to know when deciding whether to hire your business over a competitor is if your company is bonded and insured. While many people are familiar with traditional insurance, wherein you purchase a policy to protect your business, the purpose of a surety bond is often misunderstood. Luckily, surety bonds for cleaning businesses, or janitorial service bonds, are a fairly straightforward type of fidelity bond, offering essential protections for any business working in commercial or residential locations.
How to get bonded for your cleaning business
Getting a janitorial service bond can be completed in minutes through Suretybonds.com! There is no credit check, meaning your company will be instantly qualified for janitorial bonds up to $100,000. To issue your bond, you will need to provide the following 4 pieces of information:
- Name of your cleaning business
- State in which you are located
- Number of employees you have
- Desired bond amount
As soon as you complete your payment, your surety bond will be issued and sent to your email. This will provide you a digital original copy of your bond which you can access quickly and easily at any time.
How does a janitorial service bond work?
Like all surety bonds, a janitorial service bond is a contract between three parties—the principal, the obligee, and the surety.
- The principal is the cleaning company purchasing the surety bond.
- The obligee is the entity requiring the principal to be bonded. In the case of janitorial service bonds, this is the customer hiring your business to clean their home, office, etc.
- The surety is the insurance company issuing the bond. The surety guarantees that if a claim is made against the bond, coverage up to the full amount of the bond is available as compensation to any harmed parties.
Janitorial service bonds are written to protect clients in the event that one or more employees steal from the property in which you are working. Due to a conviction clause in the bond’s language, a claim against a janitorial service bond will only be considered valid if the employee(s) is found guilty in a court of law. In the event an employee is found guilty, the bond is in place to reimburse your client for the value of goods stolen, up to the full amount of the bond. If claims against the bond are made by multiple parties, the payout will be divided among the claimants.
How much does a janitorial service bond cost?
Surety bonds for your cleaning business can cost between $125-$650 and can protect your client anywhere from $10,000-$100,000 worth of stolen goods. Before buying a janitorial service bond, it is important to consider the type of venue in which you will be working and the number of employees you have when considering the amount of coverage best suited to your company. For example, a bank would likely expect a higher bond limit than someone searching for housekeeping due to the potential loss risk. Although it is up to the owner of the cleaning company to determine the amount of coverage, it is essential to ensure that your coverage is appropriate for the types of clients you will be working with, especially if they require a certain amount of coverage.
Why you should bond your cleaning business
Since the bond guarantees money is available if an employee commits theft, why would a cleaning company want to open themselves up to that kind of liability when they aren’t legally required to do so?
Although purchasing a janitorial service bond or business service bond is optional, the benefits far outweigh the risks, as long as you are doing your due diligence when vetting and hiring your employees.
Increases your business’s reputation
- Bonding your cleaning company means your business will be more reputable because it protects your customers from employee misconduct —protection unlikely to be provided by an unscrupulous business— so purchasing one assures your customers that your business is dependable and trustworthy. Customers will be more likely to choose you because you went the extra mile to ensure their protection.
Helps you attract customers
- Being bonded is attractive to clients seeking a long-term business partner. Some long-term clients require a contract to be signed before your company is allowed to set foot on their property. In these situations, proof of a surety bond is typically required before the contract can be signed.
Gives your business an advantage
- Having a surety bond also gives your company an advantage over competitors in that some of your competitors may choose not to purchase one, which provides your business the opportunity to become more marketable to your customers.
In short, the primary benefit of being bonded is that it provides potential customers with peace of mind because, by working with a bonded company, they can rest assured knowing they are protected from employee theft.
Ready to get your cleaning business bonded?
Set your cleaning business apart by getting your janitorial service bond from SuretyBonds.com! Our secure bond checkout process allows you to purchase your bond safely and easily in just a few minutes.