SuretyBonds.com has developed this introductory guide to explain the difference between janitorial surety bonds and general liability insurance and explain why cleaning companies typically purchase and maintain both of these separate insurance policy types.
Janitorial service surety bonds and general liability insurance are two different insurance tools that can benefit a cleaning company. Janitorial bonds specifically protect cleaning company clients in the event that one of their employees commits theft while working on a client’s property. Providing evidence of an active janitorial service bond to potential customers solidifies a cleaning company’s trustworthiness and reputability their competitors may lack.
Are janitorial bonds necessary? Isn’t my general liability insurance enough?
As the name implies, general liability insurance covers a business from financial loss due to more general circumstances included in the insurance policy. A janitorial bond will cover your company in the event that an employee is found to have committed theft on the premises where the work is being done. Janitorial service bonds have a conviction clause that only allows a claim to be made if the employee is convicted of theft in a court of law. Because the bond specifically protects from theft, some clients will require a company to be bonded before agreeing to allow the company to provide janitorial services in their home or place of business.
In short, the majority of protections to your company will be provided by a general liability policy, but it is important to be bonded to give clients peace of mind, knowing they will be protected from any untrustworthy employees.
Understanding the parties involved:
- Typically the obligee will be the entity requiring the bond, but since janitorial bonds are not legal requirements for cleaning companies, the company deciding to be bonded will be the obligee. These bonds are unique in that the company deciding to purchase the bond will also serve as the principal because it is the company itself that is being bonded.
- As is true with all bonds, the surety is the company providing financial backing for the bond in the event the principal doesn’t adhere to the bond terms.
Are janitorial bonds required?
Yes and no. Again, there is no legal requirement for janitorial service companies to be bonded, but the first thing many potential clients will want to know is if the company has a bond. Therefore, having a bond can give janitorial service companies an advantage over their competitors who are not bonded. When you decide it’s time for your company to be bonded, you will need to provide the number of employees to be covered and the amount of coverage you will need.
How do I know what surety bond amount to choose?
Since the bonds are not technically required, the amount of your bond is entirely at your discretion. It is important to keep in mind the location where your work will take place. For example, a cleaning company working exclusively in homes and small businesses will probably be fine with a smaller $10,000 or $25,000 bond, whereas a company working in large commercial spaces with many valuables may decide they need a larger $50,000 or $100,000 bond.
How do I get a surety bond for a janitorial cleaning service company?
You can buy a janitorial service bond online 24/7 and receive your official janitorial bond document set instantly in your email once you’ve submitted your payment. You can also call 1(800)308-4358 to speak with a surety expert about your bonding needs.
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