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Janitorial Bonds

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What is a Janitorial Bond?

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. It gives your business protection and coverage from any claim of theft by your customers, against your employees. 

Unlike insurance, your bond carrier (surety) will expect reimbursement when it pays for a claim. If your business involves Janitorial Service, House Cleaning, Carpet Cleaning, Pool Cleaning, Pressure Washing, Window Cleaning and more; chances are your clients will request that you secure this coverage.

This cleaning service bond provides coverage related to:

  • Employee theft of money or property
  • Accusations of employee theft
  • Client contracts

The benefit of a janitorial bond is that if your employee steals from a client while on duty, the client makes a claim against your janitorial service bond, instead of making the claims against your business. In other words, it indemnifies your business from the loss, which the bond provider now bears. 

The bond works differently from insurance coverage. While insurance coverage protects you and your business against property damage or loss, janitorial bonds cover clients' theft from employees. 

Questions About Janitorial 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 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 a Janitorial 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 bond. 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.

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