Janitorial Services bonds, are a type of fidelity bonds that are designed to protect a third party, your customer in case of theft. They are designed for businesses that provide services to other businesses. A Janitorial Bond is a bond to protect you and your employees against unjustified allegations of dishonesty, theft, disappearance, etc.
What is a Janitorial Services Bond? Janitorial bonds protect your company against claims of employee theft. They are also known as janitorial services bonds, custodian bonds, or home services bonds. Janitorial services and other home services companies are particularly vulnerable to employee dishonesty.
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Surety bonds protect the property and possessions of your clients when you have a janitorial, cleaning or housekeeping service. A bond mainly covers theft by dishonest employees, but it does not cover property damage. A janitorial surety bond shows your prospects and clients you can be trusted. The janitorial bond is usually optional, though some type of bond for the business might be required. States differ on bond regulations.
Even when you completely trust your staff when it comes to ethical behavior, workers from a cleaning service can get the blame when items turn up missing at a work site. Small-business owners don’t necessarily know everything about hired help, especially when they need extra workers or take on new employees for particular jobs. Janitorial bond coverage usually applies to full-time workers and not subcontracted help.
Surety bond companies vary on pricing, but janitorial bonds are inexpensive. With five or fewer employees, you can get a $5,000 bond for as little as $100 a year or a $10,000 bond for about $125 a year, depending on the surety provider. You can also purchase a $100,000 bond for about $350 a year with five or fewer employees, but handling 20 employees might raise the price to $650 a year. Higher bond amounts are also available. Poor financial history or a low credit score usually require you to pay higher premiums.
The types of jobs you handle can determine your bond amount. With a growing business, you might want high coverage when working for big clients with a variety of possessions. A new business or housecleaning service with a couple of employees might only require a low-priced bond to service small businesses or homes. Online or local bond companies ask about your service and the number of employees you want covered to give you an idea of the bond you need.
Janitorial bonds are essentially a way to attract clients, especially when you're competing against other bonded companies. The bonds actually protect your customers from losses or thefts that might occur on a job. Your bond premiums are more like service fee charges instead of insurance coverage. The bonds won’t protect you from on-the-job damages, which require special insurance policies. Like an insurance policy, however, a janitorial surety bond gives you peace of mind.