How to Get an Insurance Bond for Your Cleaning Business

Running a cleaning business involves more than just delivering spotless results. Clients trust you with access to their homes or commercial spaces, which makes reliability and accountability essential. One way to demonstrate to clients that they can count on you is by having the right protections in place, including a bond.

A bond acts as a financial guarantee. It reassures clients that if something goes wrong, like an employee committing theft, they won't be left to deal with the consequences alone. For many customers, especially those hiring services for the first time, this peace of mind is important.

But how do cleaning businesses get this bond? That's what we will learn in this article.

What You Need to Apply

There were around 1,184,128 janitorial service providers in the US in 2024. According to IBISWorld, this represents a 4.7% increase from 2023, indicating sustained growth in the competition. In such a competitive landscape, having an insurance bond for cleaning business can give you a competitive advantage.

Moody Clean Insurance states that as a cleaning service provider, you should have both insurance and a bond. Instead of just insuring your company, bonds guarantee you'll meet your obligations. Bonds come in various forms, including janitorial service bonds and surety bonds.

Applying for any bond involves a bit of paperwork, but it's not overly complex. Bond providers want to ensure they're working with a trustworthy business, so they gather basic information before issuing the bond.

You'll usually be asked to submit your business license or registration, details about your work, and the names of business owners. The company may also check your personal or business credit. This helps them assess the risk involved.

A strong credit score usually leads to a lower rate. Even with a less-than-perfect credit score, you can still qualify, though your premium might be higher. Some companies focus on assisting small businesses or owners with limited credit history.

How Much a Bond Costs

According to Investopedia, janitorial bonds are the most common type of fidelity bond. One of the primary reasons for this is their affordability. Bond costs vary depending on a few factors, but they are generally affordable.

The first factor is the bond amount required. State regulations, client contracts, or local licensing boards can set this. For example, your city may require a $10,000 bond or a client may request a $25,000 bond before awarding a contract.

Consider the example of California, where the contractor license bond and disciplinary bond amount were increased to $25,000 in 2023. Earlier, it was $15,000, and the change took effect as a result of Senate Bill 607.

The amount you pay isn't the full bond amount; it's a percentage of it. This payment is referred to as a bond premium. The rate depends on your credit and business background.

For businesses with strong financials, the premium could be as low as 1%. That means for a $10,000 bond, your annual cost might be only $100. If you're a new business or have average credit, your rate may be higher, possibly ranging from 3% to 5%.

Why Clients Look for Bonded Businesses

Hiring a cleaning company means allowing strangers into homes, offices, or facilities that often contain valuable or sensitive items. It's not surprising that many clients want extra reassurance. That's why bonding has become an expectation in both residential and commercial cleaning markets.

For instance, a Miami airport janitor was found stealing Rolex watches from passengers. According to USA Today, he has been arrested and is facing up to 15 years in prison and a fine of $10,000. Such incidents not only impact a staff member who did something wrong but also tarnish a cleaning business's reputation.

Being bonded indicates to clients that your company assumes full responsibility for the individuals you employ and the work you perform. If something goes wrong, they know there's a formal system in place to resolve the issue. This reassurance is crucial for first-time customers or high-value clients.

Over time, being bonded can also build your reputation. Word spreads when clients know they're working with a company that follows best practices and protects their interests. That reputation can lead to referrals, positive reviews, and long-term contracts, growth drivers that don't cost much but offer a high return.

Maintaining and Renewing Your Bond

Once you've secured a bond, the next step is to maintain it properly. Most bonds last for 12 months and need to be renewed before they expire. Failing to renew on time can cause delays in contract work or, worse, disqualify you from bidding on jobs.

Some bond providers offer automatic renewal, which helps ensure coverage doesn't lapse. Others send reminders as the expiration date approaches. Either way, it's your responsibility to renew and update any changes in your business information that might affect the bond.

It's also a good idea to review your bond coverage yearly, especially if your business is growing. If you're undertaking larger projects or entering new markets, you may require a bond with a higher value. Updating your bond to reflect your growth keeps you eligible for higher-level work and shows that your company is continuing to move forward responsibly.

Frequently Asked Questions

Do all cleaning businesses need to be bonded?

No, not all cleaning businesses are legally required to be bonded. However, some states and cities require bonding as part of getting a business license. Even when it's not required, many clients, primarily those in the commercial or government sectors, are likely to hire bonded cleaning services.

Can I get bonded if I run a solo cleaning business?

Yes. You can get bonded even if you're a sole proprietor. In fact, having a bond as a solo cleaner can set you apart from others in the same field and help you build trust with your clients. This translates into better market positioning. 

Can my clients file a claim directly with the bond company?

No. If a client has a concern, they typically need to notify you first. If the problem isn't fixed, clients can contact the bond company to start the official claims process. The surety company will investigate the complaint to determine its validity.

Getting an insurance bond is a smart move for any cleaning business. It reassures your clients and distinguishes your business as dependable and credible. The application is straightforward, and the cost is manageable, even for smaller companies or those just starting.

Whether you're trying to secure contracts or earn trust from clients, having a bond in place makes a strong statement. It shows your clients you're committed, accountable, and prepared to handle the work professionally.

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