Many people dream of starting their own cleaning service but don't understand everything that's needed to start a business. It takes more than just a few customers and cleaning supplies to properly start your business. There are other tools that you'll need to arm your business in order to have some essential tools needed to protect yourself and your potential customers.
Most new business owners don't understand why they'd need a janitorial bond to clean houses. However, arming your business with a surety bond is one of the smartest things you can do for yourself and your customers. Cleaning business surety bonds are put in place to protect the customer who's paying for the cleaning service. This bond lends credibility to your cleaning service because it's voluntary and it protects the homeowner form theft. In essence, these bonds are a way of telling a potential customer that their belongings will be safe from theft.
What is the Difference Between a Bond and Insurance
A bond functions similarly to insurance but there are big differences. If you get a $10,000 bond to cover a commercial client and accidentally damage the carpet while cleaning it, the bond would pay for any damage to the carpet right away. You would have no deductibles to pay or premium to meet. However, you'd have to pay the bond back. In essence, a bond works like a loan in some ways. The bonding agency covers any damages right away and you pay them back.
Business insurance could be considered more expensive because you make monthly payments regardless of whether an accident happens or not. Plus, you are required to pay a deductible and meet a certain premium. However, the amount an insurance company will pay for a damaged item can far exceed the monthly payments and the deductible and you never have to pay it back. Although a bond and insurance have some similarities, there are significant differences.
It's clear that investing in a janitorial bond for your cleaning business can be a smart move. You build credibility which can be helpful in getting more customers. It's also good to know that should anything happen, there's a company that will take care of things in the event that property comes up missing. It not only creates peace of mind for both existing and future customers, but it also protects you in some ways as well.
Surety Bond For Cleaning Business
A surety bond protects all parties involved when it comes to a service or services performed by a business for a recipient. It's a way of telling the recipient that if anything goes wrong the recipient will be compensated and/or the problem will be fixed. Having a surety bond could help you to get more customers because there is a guarantee in place. This makes hiring a business that you are not familiar with less scary when they are bonded. A surety bond is a safety measure put in place to ensure that the recipient will get the services that were requested according to the guidelines of the contract.
Insurance Coverage for Cleaning Businesses
Running a cleaning business comes with unique risks, from property damage to employee injuries. That’s why having the right insurance coverage is essential. Common policies include:
- Professional Liability Insurance, protects businesses and individuals against claims of negligence, errors, or omissions in the professional services they provide.
- Workers’ Compensation, which covers medical expenses and lost wages if an employee gets hurt on the job.
- Commercial Auto Insurance to safeguard vehicles used for transporting equipment and staff.
- Umbrella Liability Coverage, which provides extra limits beyond your primary policies.
NFP offers tailored solutions for these needs, helping cleaning businesses manage risk and stay compliant.
Janitorial Bonds Protects the Business Owner & the Client
Many business owners don't understand how to get bonded for a cleaning business. Plus, they don't understand how a bond works. Bonds not only protects your customer, it protects you too. In fact, it protects the business owner from any financial losses based upon poor financial decisions, damages, unethical decisions, or a failure to follow any applicable laws.
Even if you clean residential homes, it's helpful to be able to legally guarantee your customers that none of their belongings will be taken and that you and your employees will perform all the cleaning tasks as agreed. Unfortunately, many newcomers in the cleaning business don't know to get bonded for a cleaning business. However, this is something that anyone who is serious about running a successful cleaning operation should do.
What Does a Janitorial Bond Exclude?
It's important to note that a janitorial bond does not cover any damage to the home you are cleaning. Although a surety bond does give a business more credibility, it does not protect the business owner from having to cover their own damages should an accident occur while a cleaning service is performed.
How to Become Bonded for a Cleaning Business
The process of becoming bonded is actually simple. You register your business with the secretary of state and get a business license. Licensing your business allows you to legally operate your business in the state. After this step, you can contact an NFP's Surety to get a bond.
