Bonded And Insured: Peace Of Mind For Homeowners

When hiring a house cleaner, it is important to ensure that they are bonded and insured. This is because cleaners who are not bonded and insured can pose a significant risk to you, your home, and your finances.

Being bonded means that a neutral third party will hold money secured from the cleaning company, which can be claimed against if the company does not deliver on its contract, does not do the work it promised, or steals from your home. Being insured means that the cleaning company, rather than you, will be financially responsible for any injuries or health problems that occur during the house cleaning.

Hiring a bonded and insured house cleaner gives you peace of mind that your possessions, finances, and family are safe.

Bonding protects clients from theft by employees

When hiring a house cleaning company, it is important to consider whether they are bonded and insured. Bonding and insurance are separate issues, but both are important forms of financial protection for you.

Bonding is a type of insurance that protects clients from theft by employees. It assures that employees are trustworthy and, if something is stolen, it will be replaced. This is important because, according to Marc Leclair, former Assistant Vice President of Corporate Risk with London Guarantee in Toronto, "one-third of all bankruptcies are caused by employee theft".

There are two basic types of bonding: fidelity and surety. Fidelity bonding covers the loss of money, property, or valuables due to theft by employees. If an employee steals from a client, the client should inform the insurance company immediately, and the police may need to be involved. The claim would then be transferred to a specialized adjuster who would help the client collect on the claim.

There are three primary types of employee theft bonds:

• Name Schedule Fidelity Bond: This bond covers a designated list of employees. Whenever there is a change in employees, the employer must notify the surety company. Collecting a claim on this bond requires absolute proof that an employee stole from the client.
• Blanket Position Bond: This bond provides blanket protection over certain positions rather than a list of employees. All employees who work in the designated position(s) are covered, and new employees are added automatically. This type of bond does not require absolute proof.
• Primary Commercial Blanket Bond: This bond covers every employee in the company. Whether one or multiple employees committed theft, the employer can claim a loss for the same amount.

Additional Benefits of Bonding

In addition to protecting clients from theft, bonding also helps to establish trust for the business and make customers feel safe with employees in their homes. It can also reduce the risk of bankruptcy due to theft and protect intellectual property.

Other Considerations When Hiring a House Cleaning Company

When deciding between hiring a cleaning company that is bonded and insured versus one that is not, it is important to consider how much risk you are willing to take on. Typically, cleaning companies and independent cleaners who are not bonded and insured will be cheaper. However, this also means that you will be responsible for things that go wrong on the job, such as injuries, accidents, and theft.

In addition to bonding and insurance, it is also important to consider the company's credentials, references, cost, and written agreement. It is recommended to interview multiple candidates to determine if you would prefer to hire a large cleaning business or an individual cleaning person. During the interview process, ask about the types of cleaning products used and whether the employees have had background checks.

Insurance covers injuries, health issues, or damage

When hiring a house cleaner, it is important to ensure that they are insured. This is because insurance covers injuries, health issues, or damage that occurs during the house cleaning. For example, if a house cleaner falls on your property, your property insurance may cover the accident, or it may not. If the cleaning company you hired isn't insured and something happens, you could bear financial responsibility for the accident and have to pay for lost wages to the injured person. You could also find your homeowners' insurance premiums going up when you file a claim against your policy.

On the other hand, when you hire an insured cleaning company, they carry the responsibility for any claims. Any claims get filed against the cleaning company's insurance, not yours. This is why it is important to ask a cleaning company whether they are insured and to request a copy of their insurance policy. It is also important to verify that the cleaning company has its own workers' compensation insurance policy. If they do not, and a cleaner is injured while working in your home, they could sue you and your homeowner's insurance policy.

In addition to insurance, bonding is another important aspect to consider when hiring a house cleaner. Bonding is a type of insurance that ensures your belongings will be safe and secure while the company is working in your home. There are two basic types of bonding: fidelity and surety. Fidelity bonding covers the loss of money, property, or valuables due to theft by employees, while surety bonding ensures that the company can hire another cleaner to finish the job if the original employee is unable to complete it.

Bonding and insurance lower risks for cleaning businesses

When it comes to hiring a house cleaning service, one of the most important considerations for homeowners is whether the cleaners are insured and bonded. This is because bonding and insurance offer crucial protection for both the client and the cleaning business, reducing the risks associated with inviting cleaners into one's home.

To be bonded and insured means that a cleaning business has purchased a surety bond, most commonly a janitorial bond, along with business insurance coverage. Bonds and insurance work together to protect the cleaning business, its employees, and its clients from the common risks associated with the cleaning industry.

Although often mentioned together, bonds and insurance offer different types of protection. Bonds primarily safeguard clients from theft, while insurance shields the cleaning business and its employees from risks like property damage, bodily injury, and lawsuits.

Types of bonding

There are two basic types of bonding:

• Fidelity bonding: This covers the loss of money, property, or valuables due to theft by employees.
• Surety bonding: This ensures that the cleaning company can hire another cleaner to finish the job if the original employee is unable to complete it for any reason.

Types of insurance

There are several types of insurance that cleaning businesses may need, depending on their location and the nature of their work:

• General liability insurance: This safeguards the business from common risks such as third-party injuries, third-party property damage, and advertising injuries like libel or slander.
• Commercial auto insurance: This covers medical bills, property damage, and legal costs resulting from accidents in a company-owned vehicle.
• Workers' compensation insurance: This covers an employee's medical bills and lost wages resulting from a work-related injury or illness.
• Commercial umbrella insurance: This boosts coverage on other liability policies, providing additional protection.

Benefits of bonding and insurance for cleaning businesses

By being bonded and insured, cleaning businesses can lower their risks and attract more clients. Prospective customers are more likely to hire a cleaning company that is bonded and insured because it demonstrates the company's professionalism and commitment to protecting its clients.

Additionally, bonding and insurance can help cleaning businesses meet legal requirements and satisfy client contracts, landlord agreements, and lender agreements.

In conclusion, bonding and insurance are essential for cleaning businesses to reduce their risks, protect their clients and employees, and grow their businesses. By investing in the right types of bonding and insurance coverage, cleaning businesses can provide peace of mind for their clients and themselves.

A license means a cleaning company is operating legally

House cleaning companies that are licensed, bonded, and insured are operating legally and providing an extra layer of protection to their clients.

There are two main types of licenses that a cleaning business might need: a vendor's license and a "doing business as" (DBA) license. A vendor's license allows a company to collect sales tax on the cleaning supplies purchased, which is required in some states. The DBA license is required if the business name is different from the owner's legal name, protecting consumers from unethical business practices and prohibiting other companies from using the same business name.

Operating without a proper license is illegal and can result in penalties, including fines, suspension, jail time, and denial of future licenses. It may also increase supply costs, as wholesalers often sell their products only to licensed businesses. Therefore, a license is an important indicator that a cleaning company is operating legally and can be trusted by potential clients.

Insurance policies require background checks on employees

When hiring a house cleaning company, it is important to ensure that the company is bonded, licensed, and insured. This will protect you in case of theft, damage, or injury. Fidelity bonding, for example, covers the loss of money, property, or valuables due to theft by employees.

Most company insurance policies require background checks on employees. This is to ensure that no one with a criminal history or anyone likely to engage in criminal activity enters your home. Background checks help companies gain insight into candidates' backgrounds, ensure they hire reliable employees, verify candidates' information for truthfulness and accuracy, and screen candidates convicted of serious criminal behavior.

When conducting background checks, companies must comply with federal laws that protect applicants and employees from discrimination. This includes discrimination based on race, color, national origin, sex, religion, disability, genetic information (including family medical history), and age (40 or older). These laws are enforced by the Equal Employment Opportunity Commission (EEOC).

In addition, when running background checks through a company in the business of compiling background information, the Fair Credit Reporting Act (FCRA) must be complied with. The Federal Trade Commission (FTC) enforces the FCRA. This means that any background information received from any source must not be used to discriminate in violation of federal law. Companies must apply the same standards to everyone, regardless of their race, national origin, color, sex, religion, disability, genetic information, or age.

For instance, if applicants of one ethnicity with certain financial histories or criminal records are not rejected, applicants of other ethnicities cannot be rejected for the same or similar reasons. Companies must also be prepared to make exceptions for problems revealed during a background check that were caused by a disability. If a candidate can demonstrate their ability to do the job, they should not be rejected based on negative background information, unless doing so would cause significant financial or operational difficulty.

Overall, by requiring background checks on employees, insurance policies help to ensure the safety and security of homeowners who hire house cleaning companies.

Frequently asked questions