It is not always necessary for you to carry any type of insurance or bonding for your cleaning business. Although, not necessary it is always a great idea to protect yourself and your potential clients by having the insurances and bonding in place. Most companies will not let you bid on their work unless you show proof of your bond or insurance, as will some residential customers.
You should shop around to all business insurance agents in your area and get quotes to find out who will be the lowest premium for you. You should look into a Fidelity Bond. The fidelity bond is in place to protect the people you are working for from theft by you or by one of your current or past workers. In order for this policy to pay there will need to be a trial and guilt found. Clients like to see this type of bond since it will protect them from you and your company stealing from them. They will have an option if this were to ever happen.
The fidelity bond is purchased in many ways. You can have a bond on just you. You can have a bond on all employees. You can purchase a bond for one job in particular. You can purchase the bond for several jobs in a row. You can have a bond for the employees you choose. There are many ways to acquire and use fidelity bond.
The fidelity bond is just a “feel good” bond for the client, since most thefts are not required to go to trial the bond becomes a waste of your money. Find the cheapest premium you can just to make your clients feel good about you having the policy. This will be proof enough for companies required you to bid on work and for the residential community as well.
The other type of bond you will need is the Surety bond or “Performance” bond. This bond does what is says. It guarantees the client you will perform the jobs you agreed to for the money you are requesting. The client will then have the option to get in touch with your insurance company and collect the funds you have bid or used and hire someone else to complete the job and the client will not be out the money. The insurance company will have to pay for these charges on your policy.
Most of the time you will not need a surety bond, but for large jobs and state, city, or federal jobs will require you to have one. You can purchase a surety bond per job. You can purchase the bond per client. You can get a bond for a set dollar amount of the job or jobs you plan to do in a years’ time.
Before you submit a bid on a job you know will require a surety bond place the cost of the bond in your estimate. If you place the cost in the bid then it will already be covered. You can do this for all your bonds. Call your agent. Find out the cost of the particular bond on that job and place the estimate in your bid. This way you know if you are awarded the job you will have the bonds paid for in advance.
Edward Dean is an accomplished website developer and author. To learn more about Bonded for a Cleaning Business [http://alternativefuel.laundromat-franchising.com/getting-bonded-for-a-cleaning-business/] visit Laudromat Franchising [http://laundromat-franchising.com/] for current articles and discussions.
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