Did you know that your cleaning business bonding insurance can be a powerful ally in cleaning up the damages from theft, fraud, or harm to a client’s property?
Of course, you want to have faith that you’ve hired the most qualified team and that they have your client’s and company’s best interests at heart, but all it takes is one incident to make a mess of a perfectly good reputation. You can still expect the best from your employees, just be sure you’re always prepared for the worst. Clients expect businesses to vet their workers to ensure integrity, but even after the most rigorous screening process, you could find yourself in an unwanted situation because of an employee’s actions. All it takes is one employee, one unfavorable occurrence, and a lack of proper cleaning business bonding insurance, and you’re forced to close your doors for good.
Think about how many workers you dispatch to a client’s home or office each day. How many of those employees are left unsupervised, and for how long? Now think about the location itself. Maybe it’s a bank or office building with an abundance of cash or documents with sensitive information that’s at risk of being compromised. Perhaps it’s a facility filled with expensive technology that’s at risk of being damaged or stolen. While you can’t always control what happens when a deceitful worker is left unsupervised, you can be prepared to handle the aftermath by being adequately insured.
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It’s essential to make sure your cleaning business bonding insurance is in good standing at all times.
Did you know that 75% of commercial businesses are underinsured and that 40% have no coverage at all? Your cleaning business bonding insurance covers financial losses and protects your business when an employee puts your company’s reputation in jeopardy. Your team is the face of your business through good and bad, but of course, the bad can be nerve-wracking, even more so when you’re new to the industry. It can be hard to know how to handle situations where your employees affect client trust, but that’s when you give your insurance agent a call. They will know how to help you when an employee commits fraudulent activity or steals or damages a client’s personal property. Reach out anytime you have an incident where a member of your organization negatively impacts your clients, and they will guide you in the right direction.
Cleaning business bonding insurance can also help you to establish trust with janitorial clients from the very beginning. Though janitorial bonds aren’t always required, most people would much rather work with insured businesses. In fact, some require proof of insurance before they’ll commit to a commercial cleaning contract. Janitorial business bonding insurance helps prove your company is dependable and trustworthy. That even though you’re new to the industry, you are prepared to handle any negative incident with confidence.
Cleaning business bonding insurance also fills coverage gaps a general liability policy won’t cover.
It’s a good idea to have someone in your office periodically review your coverage to make sure you’re adequately insured and that all your policies are in good standing. It’s just too risky to try to cut corners or end up with a lapse in coverage. General liability insurance doesn’t usually cover claims caused by employee theft, but bonding insurance often does. Janitorial bonds can also cover incidents where your employee gets hurt on the job, which is much better than filing a claim against the client’s policy.
3 Things that can prevent you from obtaining or renewing your cleaning business bonding insurance
1. Your finances are a mess, and your credit score is too low.
While a credit score isn’t always required for smaller cleaning business bonds, most underwriters will review them when an applicant requests a substantial amount of coverage. They may even request a copy of your financial statement because they want to feel confident that your business can cover the costs of potential future claims.
2. You’ve filed too many claims in a short amount of time.
Insurance is meant to be used, but not abused. If an underwriter sees that your company has filed too many claims, they may consider your organization to be too much of a risk to insure. Even if you find a company willing to bond your business, It’s quite likely that you’ll have to pay a higher premium than a company that has never filed a claim before.
3. You or your employee’s personal reputation is less than desirable.
What’s in the past doesn’t always stay in the past. Some underwriters require more than a credit score or a copy of your financial statement. They will dig deeper to spot further signs of risk related to insuring your company. Maybe you have a criminal record or were dishonorably discharged from the military. Lack of employment history can also be a concern for some insurance companies. Just know that even with a tarnished reputation, cleaning businesses have options. There are organizations such as the Federal Bonding Program that help businesses get the assistance they need.
It’s important to note that not all janitorial bonds are created equal. Many things can influence the amount of coverage you’ll need:
- What are your specific state and local janitorial bond coverage requirements, if any?
- Are you adequately staffed? How many employees are on your payroll?
- What kinds of locations are you cleaning? Residential, Commercial, Government, Construction, Banks, etc.?
- Which types of occurrences are you most at risk of encountering in these facilities? Personal injury, fraud, theft, or damages?
- How large is the area to be cleaned? You will need more employees to clean larger facilities.
- Which types of occurrences have you encountered in the past? Was your policy helpful, or did you lack the proper coverage required to make things right for both you and your client?
Don’t let the stress of the unknown get in the way of your success. The peace of mind cleaning business bonding insurance can bring to new janitorial companies is truly priceless.
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