Bonding- Do I need it for my cleaning business
Is it necessary for you to carry insurance or bonding for your cleaning business? The reality is it’s not necessary but it’s always a great idea to protect yourself and your customers by having the insurances and bonding in place. Most home owners won’t even ask you if your bonded or insured. They usually just ask about how you screen your employees and don’t seemed concerned whether your insured or not.
Shop around to business insurance agents in your area and get quotes, keep in mind the lowest premium isn’t always the best for you. Make sure you understand the coverage and exclusions you are receiving with your policy quote. Also look into a Fidelity Bond, this protects the people you are working for from theft by you or by one of your current or past workers. In order for this policy to pay out there will need to be a trial and guilty party found. Your customers like this type of bond since it will protect them in case your company is involved in any theft from them.
A fidelity bond can cover you as the owner or the bond can cover all your employees or just a few. You can also purchase a bond for one job in particular or you can purchase the bond for several jobs. There are many ways to acquire and use a fidelity bond.
Keep in mind with a fidelity bond most thefts are not required to go to trial and the bond becomes a waste of your money. Find the cheapest premium you can just to make your customers feel good about you having the policy.
The other type of bond you may need is the Surety bond also know as a “Performance” bond. Most residential cleaning companies who provide services for individual home owners will not need this type of bond. It basically guarantees the client you will perform the jobs you agreed to for the money you are requesting. If you do not perform then the client will then have the option to contact your insurance company and collect the funds to complete the job and the client will not be out the money. Your insurance company will have to pay for these charges on your policy.
The only time you may need a surety bond is for large jobs and state, city, or federal jobs. You can also purchase a surety bond per job.
If a bond is required call your agent. Find out the cost of the particular bond on that job and place the estimate in your bid.
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