An Overview of the Essential Bonds for Janitorial Services

Are you thinking of starting a janitorial business? You’ve probably already gotten your cleaning supplies. Maybe you’ve even rented a small office space where high-profile clients can stop by for meetings. You might even already have a team on standby and a few clients lined up. Now, you’re ready to get started. But aren’t you forgetting something?

There’s a final but very important item you need to cross off your list: the janitorial service bond. This is not another hassle. In fact, it may very well be the most important investment of your cleaning business.

The janitorial services industry in the U.S. typically pulls in about $106.7 billion every year, with over three million people working in cleaning occupations as of 2024. 

That’s massive. But with such a great opportunity comes risk, especially as your workers will be working in people’s spaces with computers, cash drawers, personal items, and sometimes confidential files, often when no one is watching. That’s exactly why you need janitorial service bonds.

Read on as we explain what that is and why you should not start your janitorial business without it.

What Is a Janitorial Service Bond?

A janitorial service bond is basically a financial guarantee. Think of it as a safety net for your clients, which gives them the assurance that they’ll get compensation if your worker commits a dishonest act while working for them.

If you think this doesn’t happen, think again. According to recent research by Business.com, a staggering 67% of employees admitted to stealing at their current job. In the cleaning industry, janitorial bonds are designed exactly for situations like this.

It’s like telling your clients, “If my employees ever take something that belongs to you, you won’t be left bearing the loss.” Of course, you hope you’ll never need it. Most companies never do. But if theft or property damage occurs, the bond issuer (the surety company) will reimburse your client up to the bond's limit. So you see, a janitorial service bond protects both your clients’ valuables and your brand reputation.

How Does a Janitorial Bond Work?

Before you sign on the dotted line, you may want to know how this bond works. Fortunately, it’s a lot simpler than you’d think.

There are three players involved in this arrangement:

1. The Principal. This is you or your cleaning company. You’re responsible for the people working for you and must repay valid claims.

2. The Obligee. This is your client. They are the contract holder and will file a claim if any of your employees steal from them.

3. The Surety. This is the company that issues the bond or surety. They’ll investigate any claim and if they find it to be valid, pay the client up to the bond limit. They’ll later collect their money from you.

Most janitorial services bonds are pretty much affordable, and that small investment can open a lot of doors for you, especially if you’re looking to land cleaning contracts from corporate organizations and the government.

Who Needs a Janitorial Cleaning Bond?

Wondering if you really need bonds for janitorial services? Maybe you trust all your workers and know that they cannot take what’s not theirs. Or you’re worried about the cost. 

The truth of the matter is that as long as you offer cleaning services to commercial, residential, medical, financial, and government spaces, or anywhere at all where valuables are present, you definitely need one. Even if the state where you do business doesn’t require it, clients often do, for their peace of mind.

Smaller clients may not bother, but once you start going after big accounts, things change. Big clients typically have procurement departments. They compare proposals. If your competitor is bonded and you’re not, it can quietly push you to the bottom of the list.

Benefits of Bond for Janitorial Services

Now let's talk about the actual payoffs in measurable terms. What do you gain from having your cleaning business bonded?

Instant Credibility and Trust. The moment you show a potential client your fidelity bond certificate, you establish instant credibility. 

This takes your business out of the ‘general’ category and into the list of serious businesses. And guess what? It’ll show in your bottom line. According to the Harvard Law School Forum on Corporate Governance, 91% of business executives agree that earning and maintaining trust boosts profitability.

Protects Your Reputation. Here’s the thing: an accusation of employee theft, according to Moody Insurance, doesn’t have to be true to create big problems for your cleaning business. It can damage what took you years to build in minutes. 

But with your business bonded, claims are handled quickly and professionally through a surety company. This keeps drama to a minimum.

Keeps Costs Down. When you think about how much a lawsuit costs, you’ll understand why having a janitorial bond is better for your cleaning business. The U.S. Chamber of Commerce reports that lawsuits cost small businesses $160 billion per year. Divide that by 35.4 million small businesses and you’ll realize what’s at stake. 

Bonds, on the other hand, are cheap, and you can save your business in litigation fees for less than the cost of a monthly phone bill.

Marketing Gold. That you can confidently say that your business is bonded or insured is marketing gold. You can use it on your website, your van decals, and your business cards. That's free marketing. And when you consider that a small Google Ads campaign can cost $1,000-10,000 per month, it's a high ROI for very little investment.

Wrapping Up

Getting a janitorial services bond is a key step towards running a professional, future-proof cleaning business. It guarantees trust and is the absolute best way to build a loyal customer base from day one.

Even if you have 100% trust in your team, just go ahead and get it. It’s a small step today that can pay big dividends for your business tomorrow.