Ask the Building Maintenance Experts
Solutions for Your Toughest Problems

ICAN  Q & A  Home

Wednesday, July 23, 2014

Question

Would a small company need bonding insurance? If so, what would be the price range, and what could this be based on?


Answer

Answer #2:
A fidelity bond covering your staff is a smart investment. It is inexpensive; normally under $150 in most cities for 5 workers covering up to $10,000 in theft. The kicker is that it only pays upon conviction, which is not always easy to obtain.
Still, having bonding is often the magical key that allows you to obtain a customer's keys and provides a better night’s sleep.
Gary Clipperton
National Pro Clean Corp
(719) 598-5112
www.nationalproclean.com

Answer # 1.
That depends on how you define small. If you are just getting started and your customers aren't making an issue of it, I don't really see the need. Bonding normally protects you against employee theft, not your customers against loss.
"Bonded and Insured" sounds good to the customer and looks good on your business card and brochure, but its real value may be questionable. Your insurance agent can give you more info on the need, cost, and types of bonding available. You are probably looking at $200.00 to $400.00
per year in cost and it's usually based on sales or wages.
Bill Griffin, President
www.cleaningconsultants.com
Cell-206-849-0179