You may have seen the term “janitorial bond” before, but you may not be sure exactly what it is or whether you need one. A janitorial bond is a type of surety bond that is required in some states for businesses that offer janitorial services. In most cases, the bond is set at a certain percentage of the business’s estimated annual income from providing janitorial services.
Why Are Janitorial Bonds Required?
The purpose of a janitorial bond is to protect customers from financial loss due to dishonest or fraudulent activities on the part of the janitorial service provider. In other words, the bond provides customers with a financial guarantee that they will be compensated if the janitorial service provider fails to live up to its obligations.
Not all states require janitorial bonds, and the requirements vary from state to state. In some cases, the bond may be required only for businesses that offer certain types of janitorial services, such as those that involve cleaning pools or hot tubs.
How Much Does a Janitorial Bond Cost?
The cost of a janitorial bond depends on a number of factors, including the size of the business and its financial history. In most cases, the bonds are set at a certain percentage of the business’s estimated annual income from providing janitorial services. For example, a business with an annual income of $50,000 from providing janitorial services might be required to purchase a $5,000 bond. The cost for that amount of bond limit would be a fraction of that amount.
If you are thinking about starting a janitorial business or expanding your existing business to offerjanitorial services, you should check with your state’s bonding requirements. In most cases, you will need to purchase a surety bond equal to a certain percentage of your estimated annual income from providingjanitorial services. The cost of the bond will depend on factors such as the size of your business and your financial history.