10 Aug The Importance of Being Bonded, Licensed and Insured as a Cleaning Company
When you’re starting up a cleaning company, there are many factors that contribute to its success. To gain the trust and respect of prospective clients, as well as meet legal industry safety standards, your business should be bonded, licensed and insured. Learn more about what these standards entail below.
What does being bonded, licensed and insured mean?
Customers look for bonded cleaning companies. A bond protects the customer and business owner if something goes wrong during the cleaning process or if items are missing or damaged after the cleaners leave. In these cases, the bond provider will pay for damages or reimbursements.
Bonding is similar to insurance and it protects clients’ possessions while you are cleaning their property. Bonding your cleaning business is in everyone’s best interest, especially yours.
Cleaning companies must have a business license to provide janitorial services in the United States. License requirements vary depending on the state that you’re conducting business in.
The purpose of a business license is to make your janitorial or home cleaning company official and accounted for by the government. It protects consumers by ensuring health and safety standards. It helps in enforcing legal and taxation standards for businesses.
By not licensing your janitorial business, you put yourself and your customers at risk. The government penalizes unlicensed businesses with a hefty fine. Further, an unlicensed business is a liability risk that many customers do not want to to take.
Obtaining insurance for your janitorial or home cleaning business provides peace of mind for your customers. With workers coming into their homes, clients need to feel assured that their property is in good hands. Before becoming insured, you will need to run background checks on employees. This will make clients feel protected against employee criminal activity.
Accidents will always happen, and you should expect the unexpected. Insurance will save you from legal altercations and liabilities in the cases of property damage, worker illness or injury, and even damage to your equipment. There are multiple types of insurance for cleaning companies, and different types of insurance protect different aspects of your business. Make sure you secure liability, workers’ comp, and property insurance.
Although the cost of making your maid service or janitorial company bonded, licensed, and insured may seem steep, it’s essential in order to operate a safe, ethical business. Plus, bonded, licensed and insured cleaning companies win more cleaning jobs and retain more customers than their unlicensed counterparts.