All contractors who set foot in your business to do work of any kind, including cleaning, should have a minimum of 5 million dollars liability insurance. This ensures that if there was any damage ever caused at your property, you are covered. The company you’re searching for to clean your office must also be bonded.

How much should a cleaning company be bonded for?

How much does a janitorial service bond cost? Surety bonds for your cleaning business can cost between $125-$650 and can protect your client anywhere from $10,000-$100,000 worth of stolen goods.

What is the difference between being insured and being bonded?

The main difference between liability insurance and surety bonds is which party gets financially restored, according to Alliance Marketing & Insurance Services, or AMIS. Insurance protects the business itself from losses, whereas bonds protect the person the company is working for.

When a contractor is bonded What does that mean?

Construction or contractor bonds Also called license and permit bonds, this coverage indicates that a construction company or contractor has agreed to comply with the regulations of the government-issued building permit. This bond helps assure the client that the company can handle the job.

What to know about cleaning business licenses and bonds?

Once you obtain the correct license, you can start looking for clients. But keep in mind that some customers may require you to be bonded and insured. Being bonded simply means your cleaning business bought a bond; being insured means you’ve purchased business insurance. A surety bond involves three parties:

Do you need a surety bond to start a house cleaning business?

When you began your house cleaning business, you may have had to obtain a license or register with the state. During that process, many industries require the purchase of a surety bond. Housekeepers are rarely required to purchase a bond by law, but a bond can be a wise business investment.

How to apply for a cleaning business license?

Call your state’s small business administration to learn about local licensing regulations. If your state requires a cleaning business license, file an application with your local government, find out what other paperwork you need to submit, and open a dedicated business bank account.

Do you need insurance for a cleaning company?

In addition to licenses and bonds, your cleaning company may need business insurance. Cleaning business insurance provides financial protection during incidents like employee injuries and client lawsuits. As with licenses and bonds, the rules for commercial insurance depend on where you work, your clients, and your type of business.