Have you ever heard a contractor say “We’re bonded and insured” and wondered what they mean?
- What is bonding anyway?
- How does it benefit me?
- Are contractors required to be bonded?
Now that you know the questions, let’s spread some light on the subject of bonding. A bond is a specific type of insurance designed to do one thing, protect the third party (that’s you by the way, the company hiring the contractor) against theft. We have a variety of businesses that we clean and some have quite a few valuable things laying around such as iPads, flat screen TV’s, and even new computers still in the box! Of course, all of the employees that work for janitorial companies should have been through rigorous background checks but what if the worst happens? What if they decide to take something of yours and the janitorial company refuses to take responsibility? Do you really want to have to sue over one TV? Of course not, and that’s why you want to be protected.
Currently bonding is voluntary and believe it or not some are still out there without coverage. Personally, I’m not sure why. It’s inexpensive to obtain and the most important thing is it will protect the people you work for! On top of that it will reduce the overall exposure of the janitorial company. Bonding does protect you in case of theft but it doesn’t protect against damage so, a good liability policy with enough dollar limit coverage should be a part of the overall protection plan.
I hope this article has helped you understand what bonding is and why it should be important to you. for more information be sure to visit our Building Manager Resources for helpful forms, cleaning specifications, and how to articles. All of which are free to use!