Surety bonds act as a contract between a business, a client, and an insurance company. They guarantee the insurer will reimburse the client if the business fails to deliver contracted services.
Your employees likely have access to private homes and offices – often unsupervised. However much you trust them, that leaves ample opportunity for theft.
A janitorial bond is a type of surety bond that reimburses your clients for employee theft. Unlike insurance, your bond carrier (surety) will expect reimbursement when it pays for a claim. Your clients might request that your residential cleaning or janitorial company secure this coverage.
This cleaning service bond provides coverage related to:
A janitorial bond is a business service bond that protects customers from property theft by one of your employees. It covers losses if an employee steals items or money from a client while cleaning a home or business.
This policy doesn’t cover damage to a client’s property, only theft. It directly reimburses a client for the loss.
Even if your employee is innocent, a janitorial bond will reimburse a client who accuses an employee of theft. Janitorial bonds are important for any cleaning business, as even the most reliable employee can be falsely accused.
You are not required to carry cleaning business bonding insurance. However, many private clients and business owners will only hire cleaning companies that are bonded and insured.
A janitorial bond assures your customers that if their property goes missing, the bond will cover the loss. It helps establish credibility and gives you an edge over companies that are not bonded.
A janitorial service bond provides financial protection against employee theft, but your cleaning business faces many other risks. Cleaning professionals should also consider:
General liability insurance: This policy will help pay for expenses related to third-party accidents, such as someone slipping on a wet floor after you mop. Your clients may require this type of insurance in their contracts.
Workers’ compensation insurance: This policy is required in most states for cleaning businesses that have employees. If a pool cleaner hurts his back while loading equipment, or a house cleaner develops an illness due to prolonged exposure to cleaning chemicals, workers’ comp can pay for medical bills as well as partial lost wages.
Commercial auto insurance: Commercial auto insurance covers vehicles owned by your cleaning business. It can pay for injuries and property damage in an accident, plus damage to company vehicles caused by weather and vandalism.
Business owner's policy: A BOP is a cost-effective way for cleaning businesses to combine general liability insurance with commercial property insurance. Small, low-risk cleaning businesses are usually eligible.
Commercial umbrella insurance: Cleaning businesses can purchase umbrella insurance to increase the policy limits on their general liability, commercial auto, or employer's liability insurance.
Janitorial bonds are generally very affordable. The cost depends primarily on the amount of coverage you decide to purchase.
Are you ready to protect your janitorial services business or other cleaning business? Complete Insureon’s easy online application today. Once you find a cleaning service bond or other policy that fits your needs, coverage can begin in less than 24 hours.