Who needs an Indiana Janitorial Service Bond?
Janitorial and cleaning companies in Indiana who want to demonstrate trustworthiness to their clients. While not required by state law, many commercial clients and contracts require this fidelity bond as proof that the cleaning company protects against employee theft, fraud, or dishonest acts. It's especially common for companies servicing offices, retail stores, banks, and other businesses with valuable property.
What does the Indiana Janitorial Service Bond cover?
The bond covers direct financial losses to clients caused by theft, fraud, or dishonest acts committed by the janitorial company's paid employees (not owners or independent contractors unless specified). This includes stolen cash, stolen property, or fraudulent actions. It does not cover indirect losses like lost income, property damage unrelated to theft, or general negligence. Bond amounts typically range from $5,000 to $100,000 depending on the size of your business and client requirements.
How much does a Janitorial Service Bond cost in Indiana?
The cost is typically 1-3% of the bond amount annually, based on your credit score and business history. For example, a $10,000 bond might cost around $100-$300 per year. For a $5,000 bond, expect to pay $50-$150 annually, while a $100,000 bond could cost $1,000-$3,000 per year. Good credit results in lower rates. Most bonds are issued quickly online with minimal underwriting for smaller amounts.
