First things first: janitorial bonds work a little differently than your janitorial insurance coverage. That's because you don't receive the direct benefits of a bond's coverage as you would with a typical insurance policy. To illustrate that point, consider the following:
- An insurance policy is a contract that exists between you and your insurance provider.
- A bond involves three parties: the bond provider, you, and your clients.
- You receive the benefits for a covered insurance claim.
- Your client receives the benefits if a claim is made on your bond.
- You pay a premium in exchange for your insurance coverage and don't have to pay back what your insurer pays toward a covered claim.
- Though you pay the bond's premium, you must also reimburse the insurer whatever amount it pays on a bond claim.
The main thing to keep in mind is that a bond primarily benefits your clients by reimbursing them if your employees steal or are accused of stealing from them.
But that's not to say a bond has nothing to offer your cleaning services business. Let's take a look at six ways being a bonded janitorial or cleaning business benefits you in the long run.
Why You Should Get Your Cleaning Business Bonded
It's the start of a new year – why not hit the ground running and finally get bonded? After all, a bond…
- Protects you if an employee steals. It's true: you vet your staff carefully. You conduct background checks on each of your hires. But even with all those precautions in place, you just can't account for the whims of human nature. So if an employee steals from a client, your bond ensures you can make things right. Even if your business is falsely accused of the loss, your janitorial bond can cover the claim all the same.
- Helps you attract customers. In your business, trust is the foremost selling point. Whether you clean homes or office buildings, your customers want a cleaning company they can trust with their prized possessions and intimate spaces. That's why a bond is a powerful marketing tool – it communicates to your clients that you take your responsibilities seriously and that their comfort and their property's security is a top priority.
- Gives you peace of mind. You can't predict the future and you don't know when your business may be accused of misconduct. However, so long as you have your surety bond in place, you can rest easy knowing that if an awful accusation is levied against your business, you have the financial tools to handle it.
- Protects you if an employee breaks valuable items. Family heirlooms, original art, and fancy electronics – these things can be the stuff of nightmares for a cleaning company. If an employee accidentally breaks one of these items, your bond can cover replacement costs, which can be a lifesaver if you don't have a lot of expendable money on hand at any given time.
- Fills coverage gaps. Though your General Liability Insurance policy does cover many of your cleaning business's liabilities, it can't account for client property losses caused by employee theft. Only your bond can do that.
- Is fairly inexpensive. While your bond premium depends on how many employees you have, where your business is located, and what kind of services you offer, in general, janitorial bonds are pretty affordable. Typically, businesses with five or fewer employees can get bonded for about $120 for a year of $10,000 in coverage. For tailored bond quotes, fill out an online application.
To learn more about the myriad ways surety bonds can boost your business, read, "Surety Bond Benefits for Small Cleaning Businesses."