06 Oct Surety Bonds for Commercial Janitorial Companies
Surety Bonds for Commercial Janitorial Companies
Obtaining a Surety Bond for your commercial janitorial company isn’t required, but can be an important coverage that you can advertise to get more business. There are several Surety companies that write these bonds. We will explain how to get started with them.
Surety Bonds for Commercial Janitorial Companies – What Is It?
A Surety Bond for a Commercial Janitorial Company, also referred to as a Cleaning Service Bond, is a type of Bond that is designed to protect third parties that hire Janitorial Service Companies to clean their property. Cleaning Service Bonds due not typically cover property damage, but are designed to protect the property owner in case the Janitorial Service Company’s services result in financial damage by failing to follow state laws. For example, if your employee steals property from your clients, it is the bond that would provide coverage to the property owner.
Surety Bonds for Commercial Janitorial Companies – Bond Pricing
The premium associated with Cleaning Service Bonds can vary substantially. These bonds’ premium are primarily based on the applicants credit and financial history. With that said, the premium can easily double or triple if the applicant has poor credit. Another important rating factor for these bonds is the face value of the bond. Most companies opt for a $25,000 Bond, however, you can purchase bonds with a much higher face value, which in turn will raise the premium. Lastly, in some cases you can purchase two, three, or four year bonds, which will give you a discount and further reduce the premium.
Surety Bonds for Commercial Janitorial Companies – Getting the Best Price
Getting the best price on your Bond premium can be tough, especially if you have poor credit. For those with poor credit, you can often add a co-signer to the bond. If you have a co-signer with good credit, including them can bring the premium down substantially. For those without access to a co-signer, make sure you take some extra time to provide ample financial information to the carrier. Sometimes by including personal financial statements and going out of your way to show all assets, you may be able to get a better rate.
If you would like to learn more about Bonds for your Commercial Janitorial Company, give us a call at 925-297-4829!
All information is general in nature and is intended to provide guidance only. It is up to you to request specific coverage options, the agency and agent do not bear this responsibility. Always read the policy if there is a questions about coverage or a claim. If any information herein should conflict with your actual policy’s specific language, the policy language will be controlling.