What is a Colorado Janitorial Service Bond?
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There is a high demand for commercial cleaning businesses such as a Janitorial Service. It is very profitable. However, it also comes with detrimental risks.
One of the major drawbacks of the said business is employee theft.
Employee theft can happen even if you are extra vigilant, and even if the people you employ possesses a clean track record.
And that’s why as a safety net, many companies in the industry as mentioned above opt to procure a Janitorial Service Bond.
A Colorado Janitorial Service Bond is a type of Business Service Bond that aims to protect the Janitorial Service Company’s clients in case one of its employees commit a misconduct such as stealing while inside the client’s home or business establishment.
While this bond remains optional, it is also often expected by many clients.
What is the Janitorial Service bond amount?
The bond amount differs, but they are all relatively inexpensive and easy to procure.
The bond amount will depend on the number of employees the Janitorial Service Company has, or it can also be based on the owner’s bond amount preference.
You can secure a $5,000 surety bond for your company that has 5 or fewer employees.
With the bond above amount, you can pay as little as $100 for the annual premium. You can also opt for a higher bond amount for the same number of employees if you so wish.
What are the bond conditions?
- The key people or entities involved in the bond are the following:
Principal – the Janitorial Service Company
Obligee – the Janitorial Service Company’s client
Surety – the surety bond company who will issue the bond
- The principal purchases the surety bond to protect the obligee in case any dishonest act happens.
- If one of the Janitorial Service Company’s employees is accused of theft, and have been found guilty of such based on some substantial pieces of evidence, the obligee may post a claim against the surety
- The claim will be settled by the bond’s conditions, including all the other applicable industry rules.
How do I obtain a Colorado Janitorial Service Bond?
You can get this bond by following these simple steps:
STEP 1: Apply for the bond
You need to fill out and submit a bond application.
STEP 2: Underwriting
We will ask you a couple of relevant information required for the bond. This will include your financial history, business performance history, and your credit score. An underwriter will carefully evaluate all those.
STEP 3: Bond execution
Once the underwriter is done with the prequalification process, we will immediately issue the bond and send it to you!
Let’s ensure your business’ success today! Call or email us!