A janitorial bond is a voluntary bond providing theft coverage and peace of mind to your clients should an employee steal from their home or business. With bond coverage limits ranging from $2,500 to $100,000, you can assure customers their home or office contents are protected from your employees' dishonest acts.
As small businesses are all vying for cleaning and maid service contract jobs, they need an advantage in winning home and corporate services bids. Purchasing a janitorial bond lends a competitive edge to your business and can be required to enter a premise.
Cost for a Janitorial Bond
Janitorial bonds can be priced between $100 and $780 automatically based on a number of employees and the coverage amount required. For a business with over 25 employees or requiring more coverage, additional underwriting is required to receive a price for the janitorial bond.
|# of Employees||Bond Coverage Amount||Bond Price|
|5 or Less||$5,000||$100.00|
Not all price points are expressed in the chart above. This is just a small sample showing the full range of automatic pricing available.
How Does the Janitorial Bond Work?
For the most part, the hired maid is not supervised and that person can be tempted to steal while on the job site. Should the cleaning employee take any item, a police report needs to be filed. Following a conviction, the surety company will reimburse the claimant up to the bond limit. In the event of a claim, the janitorial bond is subject to a $100 deductible per claim.
To protect against fraudulent claims a bond payout will only occur if there is a conviction. The statutes of the bond indemnify the surety company against the loss. This means the surety company can go after the guilty party to be reimbursed for the bond payout.
Protect Your Business From Reputational Risks
Small businesses are especially at risk when faced with employee theft, as word of mouth and reputation are the backbone of growth. Employee background checks can aid in protecting your company name from this blight however this doesn’t offer full protection. It would only take one consequential loss to damage your company’s reputation as well as the financial cost to reimburse your client for the theft.