How to Get Bonded For а Cleaning Business
To get bonded for a cleaning business you need to apply for a janitorial bond which is a specific type of surety bond. Unlike other bonds, the process does not require any credit checks. To get your janitorial bond issued, you simply need to provide the following information:
- Bond amount of coverage
- Number of employees
- Business information (name, type of business, and address)
- Contact information
Unless specifically required by the client, the bond amount is determined by the owner of the cleaning business. The main factors you need to consider when determining the amount of your janitorial bond are:
- The number of your employees
- The type of cleaning you offer – residential or commercial
The fewer your employees, the lower your bond amount needs to be. For example, if you have only 1 or 2 employees, a $10,000 bond may be sufficient. If instead, you have 10 or 20 employees, a much higher bond amount would be warranted. Similarly, for residential cleaning services, applicants typically request lower amounts than for commercial services. After all, the bond amount should correspond to the type of clients you work with because it is the amount of coverage you provide them in the event of a theft. The final cost of your surety bond is determined based on the selected bond coverage and the number of your employees.
Here you can find the required Business Services Bond Application Form you have to fill out and the attached general fraud and state specific fraud statements.
What Are Janitorial Bonds and How Do They Work?
Janitorial bonds are a type of fidelity bonds acquired by various service providing businesses. These include companies that offer cleaning, gardening, security, moving, and other similar services that give them access to people’s property.
In short, this bond is an agreement between:
- The bond obligee – the party that requires a bond to be obtained, and is benefited by it. In this case, this is the customer.
- The bond principal – the party that gets bonded and is liable for violations against the bond. This is the cleaning business.
- The bond company – the party that issues the bond and vouches for the principal. This is the surety bond company.
What this surety bond does is to act as a guarantee that if an employee of the bonded business steals from the client’s property, the client is guaranteed financial compensation. An important condition of janitorial bonds is that such an employee must be found guilty in a court before the surety extends compensation.
Why a Janitorial Bond is Good For Your Business
If you run a cleaning business, you know how important it is to win your customers’ trust. Your professionalism, punctuality, the quality of your work, how you communicate with your clients – all of this helps build your relationship with them, and become a company they can trust.
While cleaning businesses are not legaly required to get a surety bond, being bonded and insured is increasingly something that customers look for when choosing which company they want to work with. Having a janitorial bond offers the following advantages:
- It serves as a signal to your customers that you have their best interest in mind. If you are bonded, it means you have taken an extra step to protect your clients from any possible misconduct. This improves your reputation and establishes your company as trustworthy.
- It provides financial protection to them AND you. In the case of employee theft which is proven in court, the bond will immediately cover the damage caused to your client and your employee will be liable for their actions.
- It is an effective marketing asset that immediately sets you apart from any competitors who do not offer the same advantage to their clients.
Get Your Cleaning Business Bonded Today!
Applying for a janitorial bond is easy. You need to fill in the Business Services Bond Application Form and send it to us. Janitorial bonds are usually processed quickly, so expect a fast turnaround. If you have any questions about how to get bonded for a cleaning business, call us at 866.450.3412 anytime!