What does it mean when you’re bonded and insured?
Bonding is basically liability insurance. It indemnifies the bondholder (the person or company requiring you to post it) in cases where the contractor fails to complete their project in accordance with the contract provisions, resulting in financial loss or damage.
The bond usually covers work performed within one year prior to its purchase. If there has been no claim against the bond within that period, the insurance company will refund the bond premium. It is required of all licensed contractors and subcontractors.
The bonding and insurance requirements vary from state to state, but there is a general rule that your local city or county requires you to be bonded and insured if you do business within its boundaries. While some businesses may be exempt from this requirement (good luck finding out who), we usually recommend getting it as it can protect you as well as those who hire you for services such as freelance work on their property, home remodel jobs.
The insurance portion of this equation is basically just that – general liability insurance that covers damage done by you on your client’s property or health. This can include damaging their personal belongings, physical harm resulting from faulty workmanship, such as a loose staircase railing. It also protects them should they become sick as a result of toxins present in substances used on the job, such as paint fumes, asbestos contained in insulation material, mold stemming from water damage at their residence
How do janitorial bonds work?
Janitorial bonds “can be a good way to make sure you comply with the licensing or bonding requirements of your state.”
Janitorial business owners need to know about certain bonding and insurance requirements for their type of business. While there are some similarities, each state has its own laws and regulations.
Janitorial bonds guarantee that you’ll follow state regulations, which can include licensing and insurance requirements. A janitorial company might need bonds to meet its legal obligations if it services government or industrial clients. Many states require companies who contract with either of those two types of businesses to make sure they’re insured against negligence and other liabilities as part of their agreement with those entities.
What type of bond does a cleaning company need?
The types of bonds that a cleaning company may need. This information is merely a general description of what a bond is and how it works, especially in relation to commercial cleaning companies.
We all know that a bond guarantees performance according to the contract’s stipulations, but when does one really use such a guarantee? During our ten years in business, we’ve used bonds for three main reasons:
- Legal liability
- Cleaning work
- Full service janitorial
When needed, we ask the client if he needs or wants us to get such a guarantee (bond) and if so, we shop around for the one that best suits our needs.
What does it mean for a cleaning company to be bonded?
One of the most important decisions you can make as a business owner is to pick out cleaning professionals who are bonded. There are different types of bonding, so it is important to know what it means and why it’s very beneficial for your business to work with bonded companies.
Bonding helps protect your business against any damages that might occur due to negligence or other issues that may come up during the course of professional service. There are typically three types of bonds:
(1) claims-made
(2) occurrence
(3) fidelity
The difference between them mainly lies in how long they remain effective after they have been taken out, whether the claim happened before or after the bond was put into place, etc. They all basically do the same thing—protect your business against financial losses related to service performance.
To know more about surrey bonds, visit Executive Surety Bonds now!