Janitorial Service Bond

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What Does Janitorial Services Mean?

Within the cleaning services industry, there can be several different types of cleaners. Housekeeping is meant to be for residential cleaning services such as homes or apartments. Sometimes these cleaners will also expand to do offices, but most of the time this is not the case. A janitorial service will clean commercial properties, such as office buildings, garages, retail stores, and even schools. It is important to know which specific sector of the cleaning industry you are in when shopping for the corresponding Janitorial Services insurance, especially a Janitorial Services Bond.

What is a Janitorial Services Bond?

Because a janitorial services business is in and out of commercial properties all day long, there can be pretty significant exposure to risk. You probably train your employees to clean well and respect the clients' property, but what happens when one of your employees steals something from a client? In order to provide your clients with peace of mind, they may ask you to have a bond to protect against employee theft. A Janitorial Services Bond is designed to provide coverage for your clients' property should it be stolen by one of your employees during the course of your work. Even if they don't ask you to have one, as a business owner it is a great idea because it shows your potential and current customers that their things will be protected if something unforeseen should happen.

No matter how well you screen your employees, unfortunately, you never know what could happen. In addition to reimbursing a client in a theft situation, it will pay if you never perform the work you agreed to. The Janitorial Services Bond will pay the client the fees that they paid for services that were not received. Be aware that a Janitorial Services Bond will not pay for physical damages done to the clients' property, you will need to have an insurance policy to cover that type of claim.

Who Needs a Janitorial Bond?

If you own a business that provides any kind of cleaning services you should have a Janitorial Services Bond. This includes but is not limited to maids, janitors, landscapers, painters, plumbers and HVAC contractors, other construction contractors, and pet or house sitters. The bond that you purchase will name your client as the obligee which means they will receive the funds if they suffer financial losses due to your business committing theft of their items or services they never received.

Even if you are reading this and don't have a cleaning business but have employees that enter people's homes for any type of business transaction, you should have a bond.

Why It Is Important to Have Your Janitorial Services Bonded?

Since we live in a world where anyone can sue for any reason, it is critical to protect your business from known issues that can arise. Customers reporting the theft of items and claiming they did not get the services you agreed to give them, is one of those known issues. Even if your employees did their job and cleaned the business from top to bottom, that does not mean the customer will be happy with the results.

You are probably fighting a number of other janitorial cleaning service companies to obtain new clients. One way to be a step above the rest is to be able to show you already have a Janitorial Services Bond. Keep in mind that it will give peace of mind to any potential customer, but it also protects your business. If a customer claims an employee stole something, like a $5,000 piece of china, and you cannot prove otherwise would you want to easily report a claim and get it paid for, or reach into the business's profits?

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What Other Insurance Policies Should I Have For My Janitorial Services Business?

  • General Liability - Most businesses start with at least General Liability insurance as this covers third party bodily injury and property damage. An example would be if you have an office and a client or mailman trips over your welcome mat and is injured. Or if you or an employee is in a customers’ building and accidentally damages something while cleaning. General Liability will pay for any judgments, settlements, and defense costs associated with a covered claim of this sort.
  • Commercial Property Of course, if you own a building for your business, you will want to insure it under Commercial Property so that if a fire or extreme weather event causes damage you can have it replaced quickly. Make sure you understand the perils that are covered under your policy which usually include fire, theft, lightning, and wind. Also covered here is your business personal property. An easy way to know what that is is to imagine picking up your building, turning it upside down, and anything that falls out is business personal property.
  • Commercial Auto - If you use your vehicle for business you will not be able to insure it on a Personal Auto insurance policy. A Commercial Auto policy will insure your vehicles for your business operations, and when you are using it for personal reasons. A Personal Auto insurance policy almost always excludes coverage if you are using it to conduct business, even if you are simply going from job site to job site.
  • Equipment Floater/Inland Marine - Your business probably needs specialized equipment to operate to the fullest potential, like certain cleaning apparatuses. Because of their value and how much your business depends on them, it would be a good idea to insure them separately on an Inland Marine insurance policy. You can list each piece of equipment with an individual value. Another option is to have what is called a blanket limit, which is the total limit of equipment you will have at any given time.
  • Business Income - If your building had a fire and you had to close your doors would you be able to still pay your bills? How about your employees that are amazing and you don’t want to lose? Business Income insurance can help with this as it is designed to provide your business income that is lost while you are unable to operate due to a covered claim. There is usually a waiting period of 24-72 hours and a maximum time period of receiving benefits for usually up to 24 months.
  • Workers Compensation - If you have employees you certainly need Workers Compensation coverage. Your employees depend on you for a paycheck so that they can support their families. If they become injured or ill on the job and have to miss out on that paycheck, Workers Compensation will pay for those lost wages as long as the injury or illness was work-related.
  • Cyber Liability - You always hear about the times when credit card information is hacked or if people’s personal information is leaked. This issue is a real problem in our technology savvy world that we now live in. If you end up being the cause of a data breach, it can cost you your business. Cyber Liability insurance can help soften the blow by providing a limit of liability should you be sued. Often they also provide coverage for helping to reduce the public relations nightmare that can come with a data breach. If you have heard of ransomware, this is another important coverage provided by a Cyber Liability insurance policy. A hacker will hold the data on your network until you pay them an amount of money. Often times it is worth just paying the money to keep that information protected.
  • Commercial Umbrella - An extra limit of liability in addition to the liability on your other policies is always helpful, especially in a catastrophic situation. An auto accident that results in a death is a terrible but real example where the standard $1,000,000 limit may not be enough if you are sued. Your business could end up going bankrupt if you don’t have an Umbrella insurance policy and you are ordered by a judge to pay more than the limit on your General Liability policy if you don’t have one. Another great thing about Umbrella Liability insurance is it can sometimes provide coverage where one of the underlying policies (General Liability, Employers’ Liability, Auto Liability) will not.

Business Insurance

Running a business is challenging enough without having to worry about lawsuits, employee injuries or property damage. Having the right insurance gives you the peace of mind to focus on what matters - running your business.

The coverage you need depends on the type of business you run. A restaurant owner needs to be covered against customers possibly getting food poisoning while an accountant needs to be covered against calculation errors. CoverWallet's intelligent assessment system will identify the insurance you need based on your specific business, get you a policy that fits your budget, and do it all in less time than you think.

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