Business Service Bond / Janitorial Service Bond

Janitorial Service Bond premiums start at $100 per year for companies with 5 or fewer employees at the $5,000 coverage level. Costs increase based on two factors: the number of employees and the amount of coverage per employee. For example, a cleaning company with 10 employees seeking $50,000 coverage would pay approximately $359/year. Coverage levels range from $5,000 to $200,000, and the maximum standard premium is approximately $1,035/year for 25 employees at $200,000 coverage. A 3-year prepaid option is available at 2.85 times the annual premium, offering a discount compared to paying annually. Companies with 26 or more employees should contact an independent agent for custom pricing.

Janitorial Service Bonds are available in nine standard coverage levels: $5,000, $10,000, $25,000, $50,000, $100,000, $125,000, $150,000, $175,000, and $200,000 per employee. The coverage amount represents the maximum the surety will pay for losses caused by any single employee. You should select coverage based on the value of property and cash your employees have access to at client locations. Most small cleaning companies start with $10,000 to $25,000 per employee, while companies servicing banks, law offices, or high-value commercial properties often choose $100,000 or higher.

Yes. A 3-year prepaid bond is available at 2.85 times the annual premium. This means you pay for approximately 2 years and 10 months instead of the full 3 years, saving about 5% compared to renewing annually. For example, if your annual premium is $359, the 3-year prepaid premium would be $1,023.15 instead of $1,077. To qualify, you must have no dishonesty losses in the last five years.

The premium is calculated using a matrix based on two variables: (1) the number of employees to be covered, and (2) the coverage amount per employee. This is blanket position coverage, meaning you must count ALL employees (full-time and part-time) when computing the premium. If owners are to be included in coverage, they must be counted in the employee total as well. Independent contractors are NOT covered unless added by endorsement. The premium does not depend on your credit score—there is no credit check required. Rates are based on having no dishonesty losses in the last five years.

A Janitorial Service Bond covers losses of money or other property—real or personal—belonging to clients (subscribers) of the janitorial service, or property in which the client has a pecuniary interest or for which the client is legally liable. The loss must result from a fraudulent or dishonest act committed by an employee of the janitorial company. Coverage applies to all employees covered under the bond, acting alone or in collusion with others. The bond is subject to a $100 deductible per employee involved in the loss.

The Janitorial Service Bond does NOT cover: (a) Indirect losses or lost income that would have been earned had the dishonesty not occurred; (b) Damages of any type for which the obligee is legally liable, except compensatory damages arising directly from a covered loss; (c) Costs, fees, or expenses incurred in establishing the existence or amount of loss; (d) Any legal expenses or costs related to legal proceedings; (e) Losses recoverable or recovered under other insurance or indemnity (though the bond will cover excess amounts beyond other coverage limits); (f) Losses caused by independent contractors (unless covered by endorsement); (g) Losses resulting from inventory shrinkage that cannot be attributed to a specific dishonest act.

Yes, the bond covers both full-time and part-time employees, as long as they meet the definition of "Employee" under the bond. An employee must be a natural person in the regular service of the janitorial company, compensated by salary or wages, and under the company's direction and control. However, temporary employees may NOT be sent to a subscriber's premises unless they are accompanied by a foreman who is in the regular employ of the company. If a person works less than normal working hours or otherwise fails to meet the "Employee" definition, they are considered temporary.

The Janitorial Service Bond contains a criminal conviction clause. This means that a "fraudulent or dishonest act" is defined as an act which is punishable under the criminal code in the jurisdiction where it occurred, AND for which the employee is tried and convicted by a court of proper jurisdiction. In practical terms, the dishonest employee must be criminally convicted before the surety will pay a claim. This clause protects both the business and its employees against unjustified allegations of dishonesty—ensuring that claims are based on proven criminal conduct, not mere suspicion.