Dusting Up on Business
Should I Get a Janitorial Bond / Surety Bond?

The quick answer is yes; you should get a bond for your cleaning services company because…

  • Surety bonds reimburse your clients if your business fails to deliver the cleaning services they purchased.
  • Client contracts (especially well-paying office cleaning contracts) can require cleaning businesses to have surety bonds.
  • A bond helps distinguish you from your competitors and attract new customers.

Let's explore these benefits in more detail.

Cleaning Services Businesses: What Is a Surety Bond?

Cleaning Services Businesses: What Is a Surety Bond?

Though it is called a "bond," a janitorial bond or surety bond is really an insurance agreement between you (the cleaning company), the client, and the insurance company.

If you fail to fulfill your obligations to a client (i.e., you break a contract), the insurance company pays back your client for the money they spent on your fees. You'll then have to pay back the insurance company for the amount it paid on the claim.

There are two reasons these insurance agreements are so popular:

  1. They guarantee that clients won't be out any money if they pay for a service a cleaning business doesn't deliver.
  2. They demonstrate to clients that you have an insurance company backing up your work.

Essentially, Surety Bonds give your company incentive to fulfill contractual obligations, and they show clients that they can trust your business.

Why Do Clients Want to Hire Bonded Cleaning Service Companies?

Why Do Clients Want to Hire Bonded Cleaning Service Companies?

When given the choice between hiring a bonded cleaning company and one without insurance, many customers will choose the insured company. After all, every business wants cost certainty. They want to know exactly how much something is going to cost and when they are going to get it. A Surety Bond ensures clients that they won't lose money paying for partial work or services that were never provided.

Plus, a Cleaning Services Bond vouches for your business's credibility. Instead of insisting that clients blindly trust your business, your bond is proof that if they aren't satisfied with your work, you are prepared to make amends for it.

This is why many cleaning services businesses market their company as "bonded." Because clients look for bonded cleaning services, having this insurance means you'll have a marketing advantage over competitors that don't.

Why Should Cleaning Businesses Have Surety Bonds?

Why Should Cleaning Businesses Have Surety Bonds?

Even though the primary benefactor of a Surety Bond's coverage is your client, there are other ways being bonded offers your janitorial, carpet cleaning, building services, or window cleaning business financial security.

Say you've just started a carpet cleaning business. Your employee fails to clean all of a client's carpets in their three-floor office building. You don't have the money in your business's bank account to reimburse your client. Fortunately, the Surety Bond reimburses your client, and you're able to handle the complaint quickly and smoothly.

Though you have to pay the insurance company back for the amount they covered, your ability to immediately reimburse your client helps you avoid a larger dispute that could've turned into a lawsuit.

How to Get Your Cleaning Business Bonded

How to Get Your Cleaning Business Bonded

On the side of a competitor's cleaning truck, you might see the phrase "licensed and bonded." This means that they have a cleaning license (if required by local law) and a Surety Bond to protect their customers. To be bonded, you'll need to apply for insurance with an insurance or bonding company. (For more about your legal requirements, read, "Licenses, Bonds, and Contracts: Legal Documents for Cleaning Businesses.")

It's helpful to find an insurance company that specializes in cleaning services insurance and that sells more than just Surety Bonds. This can simplify things for you down the road when your business grows and you need more insurance policies or to increase your existing coverage.

How Much Does a Surety Bond / Contract Bond Cost for Cleaning Businesses?

For free quotes on Surety Bonds for your cleaning business (or other kinds of cleaning insurance), submit an online insurance application. Our cleaning insurance agents can send your quotes directly to your inbox. Usually, we can get your business bonded within 24 hours.

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