The Janitorial Service Bond is a specialized form of protection that the owners of cleaning business should consider purchasing. Many business, not just those in the cleaning & janitorial services business, proudly advertise that they are “bonded & insured” but what does this really mean? There are two types of bonds and one is a good idea for janitorial service businesses, and one isn’t. They each have their place so let’s explain what to look for when looking to purchase a janitorial service bond for your cleaning business.
What is a Surety Bond?
A surety bond is a three party agreement that provides a tradesman, for example, the financial backing that property owners need to see before awarding the contractor the work he has bid on. Another form of surety bond is license and permit bonding. These are required by governmental and permit granting agencies of government and the presence of the bond assures the government that the work done by the contractor is done to the building code specifications. The “principal” is the contractor. Another party is the Obligee and this might be the property owner or the government agency. The Obligor is also known as the Surety and this is the party backing the contractor with the offering of a bond.
If the contractor fails to complete the work the governmental agency or the property owner that awarded the contractor the work will ask the Surety to either pay the amounts needed to complete the work, or ask that the surety arrange for the work to be completed. Once the surety has completed the work the Surety will pursue the contractor for recovery of the amounts they paid. This kind of arrangement won’t work for janitorial service bonds.
What is a Janitorial Service Bond?
A Janitorial Service Bond for a cleaning business is a fidelity bond. The janitorial service bond is purchased by the business owner to protect himself from the claims of the property owner when an employee of the business steals from the client. So, when an employee steals from the client and surety company steps in an protects the cleaning business reputation by reimbursing the client property owner for the property, money or valuables stolen by the cleaning business employee. Most importantly, the Surety does not take action against the cleaning business to recover money they paid for the theft of the employee and this is an important distinction between janitorial service bonds and surety bonding. Most Janitorial Service Bonds require a conviction of the employee to be obligated to pay. We are able to offer a Janitorial Service Bond that does not require conviction. Other terms or conditions may still apply.
How much does a Janitorial Service Bond Cost?
Find our Janitorial Service Bond Rates here by clicking on the link.
Professional Advice and Agency Service
Quality Janitorial Service Bond protection begins with understanding your needs and the extent of your operation. I have 37 years of experience working with business owners and have a unique and special connection to cleaning & janitorial service insurance businesses and their business insurance needs. This agency represents quality carriers that have the ability to provide the coverage your business needs. When you call ask us about an insurance quotation on your business package and vehicle insurance needs with our flexible Commercial Package Policy (CPP). Call and ask for Terry McCarthy at (513) 779-7920, 9-5 Monday – Friday most days.
Here are valuable links to relevant information about surety and fidelity in the United States.
Surety.org is the Surety & Fidelity Association of America and they are a trade association of most of the companies issuing the majority of the bonds in the United States. There are usesul bits of information at this link: Surety & Fidelity Association of America
The Surety Foundation is a stand-a-lone organization that serves the greater industry interests in educating the participants in promoting the surety and fidelity industry as a valuable business process in the United States. Click this link: The Surety Foundation
Additionally, we can refer you to the Surety Information Office which is an educational resource and this site includes a “frequently asked question” page, news and resources, and other information that might be helpful to you as a surety and fidelity client of this agency. Click this link: Surety Information Office