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    9 Replies Latest reply on Nov 4, 2012 1:55 PM by Moderator Berta

    Bond Insurance for a Commercial (Office) Cleaning Service

    Katrina Brown Adventurer


      I am starting a cleaning service cleaning small offices in Illinois. I am not sure where I need to start looking for (affordable) bond insurance and how to know which types of policies I need to be looking for? It will be my company but my husband, who has several years of custodian experience, will be the only employee for now. If I need to add on more staff in the future, it will be kept in the family. Please help!

       

      VirtualKatt3

        • Re: Bond Insurance for a Commercial (Office) Cleaning Service
          jas insurance Newbie

          Hello VirtuaKat,

           

          Since your business will only have two employees (you and your spouse), you should meet your bond requirement and also obtain a general liability policy or a Business Owners Policy (BOP).

           

          Liability insurance provides protection from claims arising from injuries or damage to other people or property. This type of coverage is important for you to have in case you damage the property of others while you're in their home. Your chemicals and materials could cause injuries to others as well. Accidents happen a lot.

          • Re: Bond Insurance for a Commercial (Office) Cleaning Service
            ORIGINATOR Wayfarer

            Kat-  One the most important components which shall drive the discussion about commercial insurance coverage and the insurance limits for your business will be the "Insurance Requirements Section " for your cleaning service contracts provided to you by your business client.

             

            Example: If you clean office for a rental car company or a cable service company or a banking institution or real estate concern often they will specify a minimum for both the insurance coverage types and the insurance limits for the same that they require you to have in order to do the work on their job site.

             

            General Liability usually only provides for Third Party claims for Products and Completed Operations, Personal and Advertising Injury, and Damage (Fire Only) to Rented Premises.  Workers Compensation Coverage provides for Injury and Disease coverage and is based on estimated annual payroll for each job classification.

             

            I am licensed in Illinois to produce Property and Casualty Insurance and will help work with you to obtain a commercial insurance quote by sending you the applications for the coverage today if you like. 

            • Re: Bond Insurance for a Commercial (Office) Cleaning Service
              Manuel Ramirez Adventurer

              All types of Bonds can be referred to as "surety bonds", but there are several distinct bonds that cleaning or restoration companies commonly require. There are license and permit bonds(state requirement), janitorial bonds (protect your customers), employee dishonesty bonds (protect you), and Payment/Performance Bonds (job specific bonds an owner of a project requires in order to guarantee you properly finish the job and pay for materials).

              • Re: Bond Insurance for a Commercial (Office) Cleaning Service
                Manuel Ramirez Adventurer

                All types of Bonds can be referred to as "surety bonds", but there are several distinct bonds that cleaning or restoration companies commonly require. There are license and permit bonds(state requirement), janitorial bonds (protect your customers), employee dishonesty bonds (protect you), and Payment/Performance Bonds (job specific bonds an owner of a project requires in order to guarantee you properly finish the job and pay for materials).

                • Re: Bond Insurance for a Commercial (Office) Cleaning Service
                  Manuel Ramirez Adventurer

                  All types of Bonds can be referred to as "surety bonds", but there are several distinct bonds that cleaning or restoration companies commonly require. There are license and permit bonds(state requirement), janitorial bonds (protect your customers), employee dishonesty bonds (protect you), and Payment/Performance Bonds. job specific bonds an owner of a project requires in order to guarantee you properly finish the job and pay for materials.

                  • Re: Bond Insurance for a Commercial (Office) Cleaning Service
                    Manuel Ramirez Adventurer

                    I agreed with Jas Insurance, Bonds can be refer to as "surety bond" but there are several distinct bonds that cleaning or restoration companies commonly require. In the commercial cleaning service it might be required if you get larger accounts. I think if you got insurance that should be sufficient with smaller accounts.

                    • Re: Bond Insurance for a Commercial (Office) Cleaning Service
                      Donald Stevens Wayfarer

                      We write insurance for janitors all the time. Typically a commercial client like a bank will require you to have a bond, general liability insurance, and workers compensation. They require a bond so that if someone from your companies steals or breaks something, your customer can recover that money or the cost of the item that was damaged from your bond instead of trying to get it directly from you. Its a guarantee they will be compensated. The general liability and workers compensation is a requirement usually by the customers insurance company. They want you to be insured so if there is a liability issue or work related injury, they know your insurance is going to take care of the injury. By requiring you to carry insurance, they can save money on their own insurance and protect themselves from a potential loss or claim. Good Luck.

                       

                       

                      Donald Stevens

                      http://www.myinsurancenerd.com

                      • Re: Bond Insurance for a Commercial (Office) Cleaning Service
                        Moderator Berta Guide

                        Hi Kat,

                         

                        How are things going? Please keep us updated.

                         

                        ~Berta