When it comes to becoming bonded, there are two types of bond insurance that make sense for the house cleaner: the surety bond and fidelity insurance (also known as employee dishonesty or a crime policy), says Marjorie Young, senior vice president at New York-based E.G. Bowman Co.
The surety bond assures the client that if the work is not completed, the client will have finances available to hire another company to complete the work (this would likely come into play only for very large jobs); the crime policy "offers coverage for loss of money, securities or property by or in collusion with the (cleaning company's) employees," says Young.
Instructions
1. Contact insurances companies for price quotes. In addition to conducting an Internet search and using the phone book, ask associates for references. Keep in mind that odds are the insurance company that issued the general business liability policy for the cleaning business will either issue its own bonds or have a third-party company to do so.
2. Compare quotes from multiple companies. For a cleaning-service company, Young says to expect to pay about $25 per each $1,000 of coverage required for an annual surety bond. A crime policy will depend on a number of underwriting factors but for a small business may run anywhere from $500 to $1,500 a year. Choose the policy that has the right kind of coverage at the most affordable price from the most trusted company.
3. Submit an application. Once payment of the annual premium and signed contract are received by the bond company, the bond will become valid.
