FOR ALL YOUR SURETY BOND NEEDS.
These surety bonds are general for all states.
Learn more about business services bonds, and apply today. Absolute Surety offers surety bonds nationwide through a convenient online application system.
Business services bonds are a type of surety bond that protects business owners who send employees into a customer’s home or place of business to provide services such as cleaning, painting, gardening. In short, these bonds are meant to protect any business that involves sending workers into the customer’s premises. These bonds protect the business against financial loss due to any criminal act of an employee on the customer’s premises, such as theft of cash or goods, or even assault. The most common type is a janitorial bond.
Do not confuse these bonds with employee dishonesty bonds. Business services bonds cover only criminal acts against a business’s customers, not against the business owner. Employee dishonesty bonds, however, protect business owners against crimes committed by employees.
These bonds are not mandated by any state or municipal authority. Business owners choose to buy them for the financial protection they offer. They also buy them because being bonded assures potential customers that they are dealing with a reputable business. In many areas, particularly upscale neighborhoods, customers will only patronize businesses that are bonded.
Because these bonds are voluntary, the business owner is both the obligee (the party requiring the bond) and the principal (the party purchasing the bond). In that sense, a business services bond is much like insurance. The company underwriting and issuing the bond is the surety.
If an employee of a company that purchased the bond is convicted of a criminal act committed on the premises of one of the company’s customers, the surety company will reimburse the customer for the amount of the loss. This can be a lifesaver for a small business that otherwise might not survive being sued by the customer for the theft of a large sum of money or valuable jewelry, for example.
The annual premium for a business services bond is based on the number of employees and the bond amount. The business owner is the one that decides on the amount of the bond. The business owner’s credit history is not usually a consideration. A business with few employees will pay less than one with a large number of employees, and a business that services only residential customers will pay less than one with large commercial customers.
Use our convenient online system to apply for a bond today.
