Cleaning Business Bonding: What Is It and How to Get Bonded

What Is Cleaning Business Bonding and How Does It Work?

  • “Cleaning business bonding” or “cleaning business bonding,” we are really referring to the janitorial bond, which is a form of fiduciary bond. What exactly does it mean? Let’s look at the basics.
  • A bond for janitorial services includes the following three entities: Your cleaning company as well as your client as well as your insurer. Your cleaning company purchases this bond through your insurance company in order to ensure the security of your client.
  • The bond will expire after a certain time, which means you’ll have to pay your insurance provider annually for the renewal of your bond. The good news is that bonds are less expensive than their actual coverage, which makes them less expensive than insurance.

An Example

  • When one or more of the cleaning company employees is found to be stealing money or property from a client – or has been falsely charged with doing so, the client may file a claim to your security bond.
  • If your cleaning company’s employees are found to be guilty, the insurance company will pay your customer the cost of the goods stolen as long as the bond is in. Then, you’ll need to reimburse your insurance company for that amount in a timely manner, but not necessarily in one go.
  • The bond safeguards your clients against employee theft and also protects you from having to pay out a sudden amount to your customers. Bonds are also able to pay clients more quickly and easily than insurance.
  • However, you may think, “This seems like it might be complicated and expensive… do I really need a cleaning business bond?”

Do You Need a Cleaning Business Bond?

  • The need for cleaning business bonding is dependent on the state and local laws. However, there are other good reasons to think about obtaining the cleaning business bond as well.
  • Local and state laws have requirements for cleaning business bonds.
  • Certain states require cleaning businesses in order to obtain a license. Since licensure is contingent on a cleaning business bond, this makes an additional bond for business owners mandatory.
  • Certain laws at the state and local level do not require a cleaning company bond in any way.
  • However, it’s not about the laws; it’s equally about your clients.
  • If you work for the local government, then you might require an insurance policy for business cleaning. Some kinds of clients, particularly large companies, might require an insurance policy before they’ll look at you.
  • So, do you need a cleaning business bond? No, however, it is highly recommended. Here’s a reason to look into obtaining a cleaning business bond.

What are the Benefits of a Cleaning Business Bond?

  • There are many advantages to having a clean business bonding.
  • Being a licensed and insured cleaning service means that you’re reliable and trustworthy as a company. This will help you create your reputation, establish confidence, and bring in more customers. This also provides you with another point of reference to consider when marketing.
  • In terms of marketing, the importance of having a business cleaning bond will help you stand out from your competitors. Having a business bond for cleaning allows you to compete with other businesses that have bonded services and also get a leg ahead of unbonded cleaning businesses.
  • The bonding requirement is important to customers. Some clients, including local government agencies, as well as big companies, in particular, will require you to present an unclean business bond before even thinking about hiring you.
  • In the unlikely case that your employee commits theft (or was falsely accused of theft) from a client, your bond reduces the chance of a large and sudden payment. You’ll still have to pay your insurance company for that amount, but it’s not as sudden.

How Much Does a Cleaning Business Bond Cost?

  • We must first be clear that a clean bond for business has two distinct amounts of money attached to it: the cost you pay to your insurance company and the amount the adhesive is able to cover.
  • The price or premium of the bond is the amount you pay to the insurance company on a monthly basis. The amount you pay will depend on the amount of coverage you’d like.
  • The amount that the bond is covered by is the amount that the bond is able to pay customers. If a claim is filed on the bond, the insurance company will reimburse the client for the property that was stolen up to the amount that is covered by the bond. You’ll have to pay the bond amount at a later date.
  • In most cases, the cost is usually less than the amount that is covered. However, if you wish to cover more and pay for it, you’ll have to pay an additional premium.
  • How much do cleaning business bonds cost you? It depends on a couple of things.
  • First, what number of employees do you plan to be covering? If there are more workers, you’ll likely need to cover more.
  • And secondly, how many customers do you currently have? Many clients may make claims against your bond simultaneously, so if you have a bigger number of clients, you may require more coverage.
  • Thirdly, what kind of customers do you have? How valuable is their property? If you’re cleaning banks and other businesses, then their property is worth more, and their claims may be greater.
  • So what price can you expect?
  • For instance, offers the following options:

For 1-5 employees

  • A premium of $125 for a $10,000 amount
  • A premium of $175 for $25,000
  • The premium is $250 for $50,000
  • The cost of a premium is $350 for $100,000.

For 6-10 employees

  • Premium of $145 for $10,000
  • $200 for the premium of $25,000
  • $300 for a $50,000 sum as a bonus
  • The premium is $450 for $100,000

For 11-20 employees

  • A premium of $185 for $10,000
  • $25 premium for $25,000
  • The cost of $400 is the same as that for $50,000.
  • A premium of $650 for $100,000
  • So SuretyBond’s price ranges from $125 to $625 for coverage amounts of $10,000 to $100,000. But these are the prices of only one insurance company.
  • It’s a good idea to take some time to shop through various insurance companies and compare costs. The problem is that most insurance companies will not advertise their rates in the open and ask you to call them to request an estimate.


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