How do surety bonds affect the janitorial industry?
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How do surety bonds affect the janitorial industry?

June 6th, 2012   •   2 Comments   

Whether you’ve been using cleaning services for decades or are new to the market, you’ve probably heard local janitorial companies assure clients that their businesses are legally licensed and bonded. Of course all companies must be licensed according to law before opening for business. Deciding to purchase janitorial bonding insurance, however, is a completely voluntary decision that trustworthy enterprises make to reassure clients.

Before we go much further, let’s review what surety bonds are and how they work.

Surety bonds help reinforce industry regulations by ensuring working professionals perform their jobs appropriately. If bonded professionals or businesses fail to uphold the terms of their bonds, then harmed parties can make claims to gain reparation. By issuing bonds, insurance companies provide consumers with access to reparation that’s contractually guaranteed to be paid if necessary.

As such, each individual surety bond that’s issued functions as a type of insurance policy. Surety bonds do not work as do typical insurance policies, however. When a cleaning service company gets bonded, it provides clients with a way to collect reparation in case an employee decides to steal from a client.

As such, the janitorial company that purchases the bond does not receive any sort of protection from the bond’s financial guarantee. In fact, if a client should make a claim against a bond, the insurance company will expect the bonded company to reimburse any claims paid out. This is obviously quite different from traditional insurance.

Despite popular belief, the surety bonds that janitorial companies purchase do not provide protection against employee damages. Cleaning agencies looking to provide financial protection against damages should look into purchasing a separate type of insurance policy in addition to the bond. Claims are only paid out on janitorial bonds when a valid claim is made against the offending employee who committed theft. In most states, this means the employee must be convicted in a court for the bond funds to be released.

So what type of cleaning companies purchase bonds?

Although surety bond insurance can be purchased by any cleaning service that wishes to gain the trust of clients, it’s most frequently purchased by business owners who run small cleaning operations. This is because the premiums cost so little considering the amount of protection that’s provided.

Janitorial service bonds are great for companies with employees who work early morning or late evening hours when nobody else is at the location. When clients know that they’re working with a bonded cleaning service, they know the owner has made a special effort not only to gain their trust but also to protect them in case an employee should act unethically.

Danielle Rodabaugh is the chief editor at, an online surety bond agency that provides free surety bond quotes to business owners nationwide. Danielle writes articles to help business owners in an array of industries better understand the intricacies associated with surety bonds and the bonding process.

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  1. […] owner will be asked. It is very inexpensive and total worth it.   Check out this blog post about how surety bonds affect the janitorial industry. If you are going to hire employees you will need to have workers comp insurance as […]

  2. […] Don’t hire a company that doesn’t carry surety bonding. This is especially important for protecting your office supplies and other property like computers. Keep in mind that most cleaning is done after hours when no one is in the office.  While most cleaning companies would never touch your equipment, it’s better to be protected just in case. To learn more about what surety bonding is and what it covers, check out this blog post. […]

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