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Janitorial Services Bond

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Janitorial Bond

The people who provide janitorial and cleaning services necessarily have easy access to our valuables and most sensitive information. We invest a great deal of trust in them. A janitorial service bond helps mitigate some of the risk associated with members of a cleaning staff having access to sensitive areas, information or materials. Customers feel more secure hiring a bonded service, knowing they are protected against theft and property damage. Read on to learn all about janitorial bonds.

What is a Janitorial Service bond?

A janitorial service bond is a surety bond that protects clients from theft and property damage during cleaning service at their homes or business. More specifically, a janitorial services bond is a type of fidelity dishonesty bond that helps protect the customer from fraudulent or dishonest acts on the part of bonded employees. This is why individuals and companies hiring janitorial services check to see if the provider is bonded. Unlike many other types of surety bonds, a janitorial bond is entirely voluntary. An external agency does not require a janitorial services company to acquire janitorial insurance and bonding. This coverage provides a sense of security and builds trust with their clients. A janitorial bond demonstrates credibility and professionalism, thereby offering a competitive advantage for the bonded service.

How Does Janitorial Insurance and Bonding Work?

A janitorial bond is a fidelity bond that covers only the paid employees of a janitorial service company, not independent contractors. By default, the bond does not cover the company's owner unless otherwise specified. Any incident of theft or property damage committed by covered personnel must be against the law in the jurisdiction where the work was done to qualify for a claim against the bond. Additionally, the employee who caused the loss must be tried and convicted of the crime before the claim can be filed.

The janitorial bond covers losses directly related to dishonest or fraudulent actions of the janitorial service employee. The covered losses can include items such as stolen cash or securities as well as property damage. The bond does not cover indirect losses such as lost income due to stolen or damaged assets.

Typically, janitorial services bonds include deductibles. However, the deductibles are usually a small amount, around $100, and apply per employee. This simply means that if two employees are discovered to have caused a loss, there will be a deductible for each of them.

Once a loss has been discovered, it must be traced to a covered employee, and that employee must be tried and convicted for the crime before a claim against the janitorial bond will be paid. The payment amount must be agreed upon by the insurer and the insured, not to exceed the bond's coverage amount. If the loss is due to property loss or damage, the remedy may be the repair or replacement of the property rather than monetary payment.

Who Requires a Janitorial Bond?

Janitorial bonds are entirely voluntary – they are not mandated by any government agency – as many other surety bonds are. However, some companies and individuals will not consider hiring an unbonded service to care for their property. And, among those who would, bonding provides a competitive advantage that can help to make your company stand out from the rest.

How Much Does a Janitorial Services Bond for Cleaning Services Cost?

A janitorial bond is a voluntary choice that provides a competitive advantage for the bonded company. The owner of a janitorial services company also chooses the amount of coverage, which then determines the bond's cost. The cost of the bond is a small fraction of the bond value, typically just 1-3%, depending upon the business owner's credit. The premiums are charged annually and must be maintained to keep the policy in force.

To determine the janitorial service bond that best suits your company, consider the number of employees you have and where they work. You should provide coverage for every employee on your staff. And the coverage amount should reflect the locations serviced. For example, if your employees service large companies, they will need more coverage than if they clean small residences.

Janitor bond coverage amounts can be selected between $500 to $50,000 when you apply online. Larger coverage amounts are also available by contacting one of our agents.

How Can I Get a Janitorial Bond?

Viking Bond Service makes getting a surety bond like a janitorial service bond a snap. Simply apply online. The process is quick and can take as little as a few minutes. You can apply, pay and receive your documents electronically or by mail. The option to read the policy before purchasing is available so you know exactly what you are buying.

If you need a larger bond amount or would prefer to handle your bonding by phone, our agents are available to answer your questions. Feel free to call us at 1-888-2-SURETY (1-888-278-7389) to get started. If you would like us to contact you instead, complete the contact form on the page, and one of our agents will contact you.

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