Surety Bond Professionals is a family-owned and operated bonding company with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with your janitorial bond needs.
What Are Janitorial Bonds?
Janitorial bonds belong to a class of surety bonds known as business services bonds. They guarantee customers of a janitorial or cleaning service that they will be compensated if an employee of that service steals from them while working on the customer’s premises.
Who Needs Them?
No state requires any company to purchase a janitorial services bond. However, some business owners may purchase one for a couple of good reasons:
- First, some customers, especially commercial customers, won’t hire any service provider unless it is bonded. Without a janitorial services bond, you would not have access to those customers.
- Second, advertising the fact that your business is bonded is a great marketing strategy for a service business. It demonstrates your commitment to ethical business conduct and to providing outstanding customer service. This can give new customers the confidence to choose you rather than a competitor.
No matter how careful you are about vetting new employees, you can never be 100% certain that every person you hire is completely honest and trustworthy. That’s why you need a janitorial services bond.
How Do Janitorial Bonds Work?
In most cases, a claim can only be filed against your janitorial services bond after an employee has been convicted of stealing something from a customer’s premises. Once the employee’s guilt has been established and the customer has filed a claim against your bond, the surety company that issued the bond typically will pay it and then collect reimbursement from you.
By paying a claim on your behalf, the surety makes the claimant whole in a timely manner. The advance payment by the surety also gives you a little time to gather the necessary funds, which can be a big help in terms of your cash flow.
But make no mistake, you are legally obligated to reimburse the surety. The terms of the surety bond agreement make the bonded party—you—solely responsible for paying claims.
What Do They Cost?
The annual premium for any surety bond is a small percentage of the total bond amount. Because you are purchasing a janitorial services bond voluntarily, you get to decide what that total bond amount will be. You might want to choose a higher amount if you deal primarily with commercial clients than if you provide residential cleaning services only.
The surety company will assign you a premium rate based on the number of employees who will be covered, where your business is located, and what specific services you offer.
Our surety bond professionals will help you with your bond need easily and quickly. Apply now!