How To Get Bonded And Insured For Cleaning Business

Running a cleaning business comes with the risk of employee theft, which can result in unexpected costs.

If your employee steals from a property, clients will expect your company to cover the losses.

Dealing with such expenses can strain your budget. To mitigate this common risk, consider obtaining bonding insurance for your cleaning business.

This blog provides comprehensive information to help you navigate this potential financial hardship.

How to get bonded and insured for cleaning business
The process of getting your cleaning business bonded and insured includes determining the type of bond you need, deciding on how much coverage your business needs, collecting quotes from insurance companies, knowing the cost you will pay, and picking the right insurance company for your business: Photo source (Indeed)

The Basics of Cleaning Business Insurance and Bonding

Certain surety bonds are obligatory for businesses, but in the cleaning sector, Janitorial Service Bonds are a discretionary choice.

These bonds fall under the category of fidelity bonds, which business owners opt for voluntarily.

Differing from conventional surety bonds, Janitorial Service Fidelity Bonds function akin to an insurance policy involving two key parties:

  1. The Insured – Referring to the cleaning company, which has the right to file a claim on the bond for financial coverage in the event of fraudulent acts committed by its employees.
  2. The Insurer – Represented by the bond underwriter, the surety settles claims with the insured. Typically, claim validation hinges on the legal conviction of the implicated employee.

In essence, Janitorial Service Bonds offer a protective layer against unscrupulous employees for your cleaning company.

It’s crucial to reiterate that the surety’s settlement of the claim is contingent upon the employee being legally convicted of the offense in a court of law.

Getting Bonded for Cleaning Businesses – Why it Makes Sense

Acquiring a janitorial services bond involves a financial investment. The question arises: why opt for such a bond when it’s not obligatory? Some might argue that paying out of pocket for stolen property seems more straightforward. However, this perspective may not necessarily hold true.

The primary rationale behind obtaining a janitorial services bond is to establish a foundation of trust between your business and potential clients.

When individuals allow unfamiliar personnel into their homes or businesses, entrusting them with their property, there’s an inherent risk.

Clients find reassurance in hiring a cleaning services company with a bond, as it enhances the likelihood of compensation in the event of theft.

Faced with the option of a company with or without a bond, most individuals tend to favor the insured and bonded cleaning service – it’s a logical choice.

Moreover, janitorial services bonds offer protection to the bondholder.

Since the bond exclusively settles valid claims substantiated in court, it serves as a safeguard against baseless and deceitful claims that disgruntled clients might file.

In the competitive landscape, many cleaning services leverage their bonded status as a strategic differentiator and a valuable marketing asset.

They strategically highlight their bonded status in promotional materials, signaling to clients that they can trust the personnel they are hiring.

Also read: Does Business insurance cover legal fees?

Getting Bonded for Cleaning Businesses – When it Makes Sense

For any cleaning business, big or small, getting bonded makes sense.

Theft risk is present when cleaners work independently, so having a bond is crucial.

It’s best to secure a bond before starting services to attract customers and provide immediate protection for the business and its clients.

Count on Viking Bond Service to simplify the bonding process for your cleaning services business.

How to Get Insured and Bonded for House Cleaning

Our focus here is on house cleaning, given the prevalence of residential cleaning services compared to commercial ones.

The steps for obtaining a janitorial services bond remain consistent regardless of the type.

Unlike other surety bonds, no credit check is necessary.

The surety only requires basic business information:

  1. Amount of Bond Coverage
  2. Number of Cleaners
  3. Basic Business Info (name, address, etc.)
  4. Contact Info

Based on this information, the surety will provide a cost estimate for the bond.

Activation of coverage typically requires payment for a specific duration, often 12 months, with renewal options involving additional premium payments.

The amount of bond coverage needed depends on potential financial damage from employee theft.

Generally, commercial cleaners opt for more coverage than residential cleaners. Moreover, as the number of employees increases, both types of cleaners seek higher coverage.

For instance, a company with 2-3 cleaners might opt for $10,000 in coverage, while a company with 50 cleaners requires significantly higher coverage.

What Does Bonding Insurance for a Cleaning Business Cost?

Surety bond expenses are typically a modest fraction of the overall coverage value, occasionally falling below $200.

Determine the cost of your bond by applying to a reliable surety agency, capable of securing competitive bond proposals from various providers nationwide.

Opting for the appropriate surety agency streamlines the bond acquisition process, ensuring a swift and efficient experience while identifying the most advantageous offers.

Save on expenses by choosing to collaborate with Viking Bond Service.

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