How to Get a Cleaning Business Bonded
- 1. Understand what being bonded means. Becoming a l icensed cleaning business means you can legally operate your company. ...
- 2. Establish an LLC or DBA. We have a blog post that covers establishing your company in detail, but here’s a quick recap: ...
- 3. Acquire all necessary licenses and insurances. ...
- 4. Acquire bonds through the appropriate insurance company. ...
Full Answer
How do I become bonded and insured for cleaning services?
Becoming bonded and insured for cleaning services is a multi-step process. First, you’ll need to know what insurance coverage or bonds may be required by your city, county, or state. Start by contacting your local chamber of commerce to learn about the legal requirements in your area.
What type of bond does a cleaning business need?
There are two types of bonds that your cleaning business might need. License and permit bonds: Your business will need a license and permit bond only if it’s required by your local government. This bond certifies that your cleaning business will comply with all state and local laws.
How do I get a license for a cleaning business?
To get a license for your cleaning business, start by contacting your state’s department of revenue or department of taxation. You might be redirected to your county clerk or city licensing board depending on where you live. When you find the right agency, they’ll explain what’s required in order to get your cleaning or janitorial license.
How do I get a surety bond for my housekeeping business?
How Housekeeping Businesses Can Get Bonded To purchase a surety bond, contact an approved insurance or surety bond agency. Housekeeper surety bonds can be purchased in amounts ranging from $5,000 to $100,000 and are typically issued for a flat-rate premium without a credit check. That may vary depending on where you purchase your bond.
Do cleaning people need to be bonded?
Cleaning business insurance and janitorial bonds are typically required for client contracts, as well as agreements with landlords and lenders. Being bonded and insured can help attract clients because it shows that your company is reputable.
What kind of bond do I need for cleaning business?
Cleaning businesses should consider purchasing a fidelity bond, which is also called an employee dishonesty bond. These bonds protect your customers if an employee commits property theft while servicing a client's home, preventing you from having to compensate customers for losses out of pocket.
Do you need a license to clean houses in Illinois?
Sole proprietors and general partners do not have to apply for a business license with the State of Illinois. Residential house cleaning service businesses must apply for a business license at their city and county clerk's offices.
What is a cleaning bond?
Cleaning business surety bonds are put in place to protect the customer who's paying for the cleaning service. This bond lends credibility to your cleaning service because it's voluntary and it protects the homeowner form theft.
What licenses are needed to start a cleaning business?
When you start a cleaning business, there are two licenses you might need: a vendor's license and a doing business as (DBA) license. At a high level, business licenses allow your company to legally conduct business in your state.
What it means to be bonded?
Being bonded means that an insurance and bonding company has procured funds that are available to the customer contingent upon them filing a claim against the company. If you are a contractor or other type of business owner, you may have good reason to explore what it means to be surety bonded.
Do you need a license to be a handyman in Illinois?
Handymen and general contractors are not required to have a state license to work in Illinois. However, many local jurisdictions including Chicago, require that handymen and contractors have a general contractor license.
How do I become a licensed contractor in Illinois?
are issued at the municipal level and are subject to the regulations, requirements and fees passed by individual cities.Determine the Type of Contractor License You Need.Access Illinois License Application Forms.Pass the Examination.Obtain Your Contractor License Bond.Fulfill Requirements and Obtain Required Documents.More items...
Do independent contractors need a business license in Illinois?
While Illinois doesn't require a general contractor license at the state level, licenses are typically regulated at the city or county level, and those requirements often vary. There are exceptions for roofing and plumbing licenses, which require state permits. Each city also has a different licensing fee.
How do you become bondable?
When you are bondable, you are deemed to be reliable and someone that can be trusted. The main thing being bondable means when applying for jobs is you do not have a criminal record. If you do have a record, you can apply for a pardon, and this will help you become bondable down the line.
What is the difference between being insured and bonded?
Being bonded means you have purchased a surety bond that offers limited guarantees to clients. Being insured means that you have an insurance policy that protects against accidents and liabilities, often with greater limits than bonds.
Do you pay before or after cleaning services?
It's common in the cleaning industry for the client to pay first, but you don't have to do it that way. You may wish to go with a method that better suits business etiquette in your region. We've got three ways to keep the “awkward” out of collecting payments from your customers: Upfront payment.
What is bond insurance for a business?
Bonds are financial guarantees required to secure a contract or license. There are many different types of bonds available to fill requirements for business clients who need to provide a secondary financial guarantee. Surety bonds are not insurance, they are guarantees of performance and obligations.
How do I start a house cleaning business in Florida?
5 steps to starting a cleaning business in FloridaRegister your business with the state. ... File a fictitious business statement. ... Obtain an employer identification number (EIN) ... Get a business license. ... Obtain a sales tax permit. ... Miami-Dade County. ... Jacksonville. ... Tampa.More items...
Do you pay before or after cleaning services?
It's common in the cleaning industry for the client to pay first, but you don't have to do it that way. You may wish to go with a method that better suits business etiquette in your region. We've got three ways to keep the “awkward” out of collecting payments from your customers: Upfront payment.
Who Needs a Cleaning Business License?
Cleaning businesses typically don’t need a license specifically designated as a cleaning business license. They may, however, need to get a general business license or register their business as a taxable entity with the Secretary of State’s office in their state. And many counties and municipalities require licensing or registration of businesses at the local level for taxation purposes.
How Much Does a Janitorial Service Bond Cost?
The premium you’ll pay for a janitorial service bond depends on the amount of coverage you want, the number of employees you want to cover, and how risky the surety believes it would be to pay claims on your behalf. You get to control the cost through the coverage decisions you make.
Why is a Janitorial Service Bond Recommended?
Cleaning services typically send employees out to clean customers’ homes or business premises. The term “cleaning services” encompasses a variety of different types of cleaning businesses, such as general home cleaners, maid services, carpet cleaners, window cleaners, and companies that provide cleaning services to commercial businesses, such as banks, hotels, and retail establishments.
What is a janitorial service bond?
Janitorial service bonds protect the owners of cleaning services against liability for those damages. Also, being bonded shows potential customers that you can be trusted and gives you an advantage over your competitors who have not chosen to purchase a janitorial service bond.
What is surety bond?
A surety bond agreement is a legally binding contract. When you purchase a janitorial service bond, you are guaranteeing your customers payment of any valid claims. You are also guaranteeing the surety (the company that approved the bond) that you will pay all valid claims.
How to get a business license?
The primary purpose behind business licensing is to ensure collection of business income taxes and remittance of sales taxes paid to businesses by their customers. The licensing process typically involves: 1 Completion of an application form (often online) 2 Documentation of the legal structure and ownership of the business 3 Proof of proper insurance coverage (e.g., general liability, workers’ compensation) 4 Payment of an application or license fee
Can a customer file a claim against a bond?
In most states, the employee who caused the customer’s loss must be found guilty in a criminal court before the customer can file a claim against your bond. The criminal conviction is what makes a customer’s claim valid, which is a requirement for payment of the claim.
Why do you bond your cleaning company?
Bonding your cleaning company means your business will be more reputable because it protects your customers from employee misconduct —protection unlikely to be provided by an unscrupulous business— so purchasing one assures your customers that your business is dependable and trustworthy.
How much does a surety bond cost for cleaning?
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. Before buying a janitorial service bond, it is important to consider the type of venue in which you will be working and the number of employees you have when considering the amount ...
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. Before buying a janitorial service bond, it is important to consider the type of venue in which you will be working and the number of employees you have when considering the amount of coverage best suited to your company. For example, a bank would likely expect a higher bond limit than someone searching for housekeeping due to the potential loss risk. Although it is up to the owner of the cleaning company to determine the amount of coverage, it is essential to ensure that your coverage is appropriate for the types of clients you will be working with, especially if they require a certain amount of coverage.
How to issue a surety bond?
To issue your bond, you will need to provide the following 4 pieces of information: Name of your cleaning business. State in which you are located. Number of employees you have. Desired bond amount. As soon as you complete your payment, your surety bond will be issued and sent to your email. This will provide you a digital original copy ...
What is a surety bond?
The surety is the insurance company issuing the bond. The surety guarantees that if a claim is made against the bond, coverage up to the full amount of the bond is available as compensation to any harmed parties. Janitorial service bonds are written to protect clients in the event that one or more employees steal from the property in which you are ...
What is a principal in a janitorial service bond?
In the case of janitorial service bonds, this is the customer hiring your business to clean their home, office, etc. The surety is the insurance company issuing the bond. The surety guarantees that if a claim is made ...
Why do businesses need a surety bond?
Gives your business an advantage. Having a surety bond also gives your company an advantage over competitors in that some of your competitors may choose not to purchase one, which provides your business the opportunity to become more marketable to your customers. In short, the primary benefit of being bonded is that it provides potential customers ...
Why do cleaning companies need bonds?
Bonds help safeguard your cleaning business from lawsuits since a client who is paid for damages is less likely to sue. However, bonds aren’t the only protection you’ll need. Cleaning businesses typically carry some combination of the following insurance policies:
When do you need a cleaning business license?
When you start a cleaning business, there are two licenses you might need: a vendor’s license and a doing business as (DBA) license. At a high level, business licenses allow your company to legally conduct business in your state.
What does it mean to be bonded and insured?
Being bonded simply means your cleaning business bought a bond; being insured means you’ve purchased business insurance.
How do bonds and insurance work?
In short, bonds protect your customers and insurance protects your company. The difference is most obvious during the claims process. Here’s a brief overview of how bonds and insurance policies work: Bond claim: With a bond claim, your client collects money from the bond carrier (also called a surety).
What is surety bond?
A surety bond involves three parties: The principal: The business purchasing the bond. The obligee: The client that has requested the bond. The surety: The company that underwrites the bond. Insurance, on the other hand, is an agreement between you (the insured) and your insurance company (the insurer).
How often do you need to renew a DBA license?
Most vendor’s licenses need to be renewed annually or every few years. DBA licenses are valid for five years in every state. With either license, most states charge a renewal fee to keep your cleaning business license valid.
What is cleaning 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. Here’s an overview of licenses, bonds, and commercial insurance for cleaning businesses.
How do I become bonded and insured?
Becoming bonded and insured for cleaning services is a multi-step process.
Why do you need janitorial bonds?
Simply put , bonds safeguard your clients from theft, and insurance shields your business and employees from risks like bodily injury, property damage, and lawsuits. Cleaning business insurance and janitorial bonds are typically required for client contracts, as well as agreements with landlords and lenders.
How much will insurance and bonds cost?
The cost of bonding and insuring your cleaning business depends on a number of factors, such as:
What does it mean to be bonded and insured?
To be bonded and insured means that your cleaning business has purchased a surety bond, most likely a janitorial bond, along with business insurance coverage. Together, bonds and insurance protect your business, your employees, and your clients from common risks. Although bonds and insurance are often grouped together, ...
What are the risks of cleaning business?
Cleaning businesses face a variety of different risks. Employee injuries, property damage, and even accusations of theft can seriously hurt your business and your bottom line. Cleaning business insurance and bonds can protect your cleaning business from potential pitfalls and liabilities. Here’s what you need to know about how to get bonded ...
How much does general liability insurance cost for cleaning?
The median cost of general liability insurance for a cleaning company is $530 per year, which breaks down to less than $45 per month.
Why is it important to be bonded?
Being bonded and insured can help attract clients because it shows that your company is reputable. It gives prospective customers peace of mind that they’re protected if they hire you. Cleaning business insurance and bonds can protect you from potential pitfalls and liabilities.
How much is a housekeeper bond?
To purchase a surety bond, contact an approved insurance or surety bond agency. Housekeeper surety bonds can be purchased in amounts ranging from $5,000 to $100,000 and are typically issued for a flat-rate premium without a credit check. That may vary depending on where you purchase your bond.
Why do housekeepers use surety bonds?
Surety bonds increase a business’s trustworthiness and protect its clientele. The most common reason housekeepers and cleaning companies purchase surety bonds is in case of employee theft. written by guest author Melanie Baravik.
What does "bonded and insured" mean?
These phrases are assurance to customers that your business has gone through the necessary legal channels to make sure they are protected.
What happens if a cleaning company steals from a customer's home?
If an employee steals from a customer’s home, they can file a claim against the bond to be compensated for the theft.
What is surety bond?
A surety bond is similar to insurance, except it is for your customers’ financial protection. A bond is an agreement between three parties: - The obligee, the entity requiring the bond - The principal, the person purchasing the surety bond - The surety, the company backing the surety bond. Surety bonds protect consumers from financial loss ...
Do surety bonds have to be reimbursed?
This is where surety bonds differ from insurance: the principal must reimburse the surety for the amount of the claim. You can see that it’s in the business’s best interest to avoid violating their bond terms so they don’t have to reimburse the surety company.
What is the goal of a cleaning business?
The goal of cleaning businesses is to make a profit by providing cleaning services to commercial buildings and residential homes. When you're ready to start your cleaning business, you will need to acquire a Doing Business As (DBA) registration and a vendor's license.
How to get a DBA license?
You can get a DBA registration application from either your county administration office or office of the county clerk. Fill out your application and then mail it back with the required fee. Once the application is processed, your business will be formally registered. Before you file your DBA registration application, you will need to come up with a name for your business. Your name should be catchy while reflecting the services that you offer. Your vendor's license will be issued when your DBA application is approved. This license allows you to collect sales taxes from your clients, which is required in the majority of states.
What happens if you open a business without a license?
If you choose to open your business without first acquiring a business license, you may face stiff penalties if it is discovered that you are operating without a license. Not obtaining a business license may also increase your supply cost.
Is it profitable to own a cleaning business?
Running your own cleaning business can be a very lucrative endeavor, and for many, being a small-business owner is also a great deal of fun. When you offer commercial and residential cleaning services, you'll have the ability to complete several important tasks: The ability to set your own hours. Building a strong client base.
Can you hire employees to clean commercial buildings?
After deciding whether you will clean large or small commercial buildings, you need to select a name for your business.
Is it hard to clean commercial buildings?
Although there is often more money in cleaning large commercial buildings, taking on such large jobs when you're first starting out can be difficult. Determining the size of the buildings you wish to clean will help you identify to which businesses you should advertise your services.
Is it cheaper to start a cleaning business or franchise?
On the other hand, you will likely have more success early on by starting a franchise, as you will usually be provided with a ready-made marketing plan. Regardless of the option you choose, you will need a business license, as well as equipment and supplies, ...
What is cleaning authority?
Get a clean home without the hassle and focus on things that matter more. The Cleaning Authority is the name to trust. We always go above and beyond the expectations placed upon us, and your satisfaction is always guaranteed.
Is cleaning authority screened?
All our employees are screened and trained. Every single employee of The Cleaning Authority is thoroughly screened and highly trained for our customers' peace of mind.
