Janitorial Bonds Explained
Janitorial bonds are a type of fidelity bonds. Their purpose is to protect your customers in case of theft or fraud committed by your employees on clients' premises. Janitorial bonds function as insurance for your customers against such illegal activities, as they safeguard their property and belongings. They are a form of a business services bond.
Some of the typical businesses that obtain janitorial bonds include residential and commercial cleaning providers, housekeepers, maids, and carpet cleaning services among others. If there is a case against your cleaning staff, a claim on the janitorial bond can be made. The surety provider will need to examine the case and determine if it can be proven legally. If it is, the client will be able to obtain fair compensation.
Questions about Fidelity Bonds
When do I need a janitorial bond?
Janitorial bonds are not obligatory. Obtaining them is the choice of your company. However, many clients today would not work with a cleaning business that does not have a janitorial bond. When you have this bonding, it is a strong signal for your customers that your company is safe to work with. That's why it's worth advertising your business as bonded.
In addition to providing a safety net for your customers, janitorial bonds can be of great help to your company as well. It can prevent serious harm, in case of substantial employee theft, which could otherwise ruin a business.
What are the costs?
The cost of your janitorial bond would depend on the dollar coverage you want to obtain, the number of employees you want to cover, and the exact type of business that you run. Keep in mind that in some cases, clients may expect of your company to have a specific amount of coverage. You would need to pay an annual premium in order to keep your janitorial bond in place.
Can I obtain this bond with bad credit?
In most cases, the business owner's personal credit score is not a factor in determining the premium for janitorial service bonds. Thus, if you have problematic finances, you're not likely to stumble into difficulties with this type of bonds. However, if you want to obtain a large coverage or have a significant number of employees whom you want to cover, your credit score may be required. In this case, having bad credit would make it more difficult to obtain a janitorial bond.
How do I get bonded?
In order to obtain your janitorial surety bond, you have to do the following:
- Download the application form
- Fill it out and send it to [email protected] or fax it to (267)-362-4817.
Have more questions about janitorial bonds, or other types of fidelity bonds? Don't hesitate to reach our specialists and get assistance. Just contact us at (877) 514-5146.