If you own a cleaning service, you should think about getting a janitorial service bond. You need other types of insurance as well, but a service bond is also good to have since it gives your clients confidence in your business. Here are details to know about janitorial service bonds.
Janitorial Service Bonds Aren't Mandatory
You aren't required to carry a janitorial service bond when you run a cleaning company. Although the bond is voluntary, it's still a good idea to get one. Before a company hires you to provide janitorial services, they'll want to make sure you have insurance and that you're bonded. Having a bond could make the difference between getting a contract and being passed over for a company that's bonded.
A Service Bond Protects Your Clients From Theft
The purpose of a janitorial service bond is to cover theft claims made against your employees. While you'll want to do background checks and make sure you hire honest employees, there's always a slight risk an employee could steal something from a business while they're cleaning, especially since you can't be at every job site overseeing your employees.
Being bonded means the client will be compensated for the theft. This gives your potential clients, especially those concerned about letting strangers in their buildings to clean up, confidence in your services.
A Janitorial Service Bond Is Usually Affordable
Prices for a service bond vary by company and the amount of the bond. However, the bonds are usually affordable when compared to the cost of insurance. You can add a bond to your insurance policies and you probably won't be stressed financially by it. The payoff is worth it since advertising you are bonded could bring in more clients.
You Have To Pay The Claims
It's important to know a bond is different from insurance. When a claim is filed against your insurance, the insurance company pays out the money if the claim is approved. When a claim is filed against your service bond, you'll need to pay the claim yourself.
If you can't or won't pay, the bond agency might pay for you, but then they'll get the money back from you even if they have to take you to court. A service bond is to protect your clients, not you.
Also, if an employee steals from you, the bond won't cover it. A janitorial service bond only covers employee theft that affects a client. When you understand how the service bond works, you'll understand how it's useful for marketing and running your business.
For more info about janitorial service bonds, contact a local company.