Carpet Cleaning Business What Type Of Bond Do I Need

Janitorial surety bond why do you need one.

Carpet cleaning business what type of bond do i need.

Even if your state doesn t mandate cleaning bonds some clients will only hire bonded businesses. There are two types of bonds that your cleaning business may be required to purchase. Make a list of the local companies and their lowest quotes. Call local insurance companies and ask for bond quotes.

To be sure a business is being bonded correctly a business can contact their local business licensing agency to find out if a bond is required or not. It covers losses if an employee steals items or money from a client while cleaning a home or business. It directly reimburses a client for the loss. Every business needs startup capital and carpet cleaning is no different.

A surety bond ensures clients that the cleaning business is legitimate and insured. Then with time you can expand your business by buying a carpet cleaning machine or a gutter cleaning machine for example and start providing these services too. Typically insurance companies will need to know how large your business is and what kind of business it is in order to give you a quote. A janitorial bond is a business service bond that protects customers from property theft by one of your employees.

Your business needs these bonds only if they are required by your local government. A janitorial bond is also called a housecleaning custodian janitorial services fidelity carpet cleaning or janitorial surety bond. Even if a business has not been notified a bond is required the agency should still be contacted. In the case of janitorial service bonds this is the customer hiring your business to clean their home office etc.

The obligee is the entity requiring the principal to be bonded. Figure out what you need to live on top of that and try to have 90 days expenses in reserve to give you time to establish regular cash flow. We ve never been bonded and will not be unless a big client requires it. The surety is the insurance company issuing the bond.

This policy doesn t cover damage to a client s property only theft. It is not needed to go into business and doesn t provide any real protection for you. A bond is sometimes required by a company you might do work for. You will need money for equipment gas chemicals and marketing at the minimum.

The principal is the cleaning company purchasing the surety bond. Whether your company cleans carpets upholstery offices or homes they are an essential addition to your business insurance and other business bonds. It is designed to protect the company customer you are hired by. If you own a cleaning business it is advantageous for you to bond it.