What does it mean when a cleaning service says they are licensed and bonded?

Question

Im looking into hiring a cleanin service and I want to know what it means when they say they are licensed and bonded?

Answer 1

The requirements for licensing of a business depends on yours state. Some businesses do not need to be licensed. It is dependent on what your state requires. Check with your state for more specific information on that type of business.

Bonding, in your case, is a fidelity policy (janitorial services bond) that protects you from the house/office cleaners in case they steal from your house/office while cleaning it. It does not cover damage caused by them. That would be handled under their liability insurance.

I would ask for a copy of the bond and proof of their liability insurance. Also, a copy of their license if it is required by the state that they need one. Having a copy of the bond will tell your two things, (1) how much coverage they have and (2) the name of the insurance company the bond is written through. You might want to verify the bond with the insurance company to see that it is still in effect. These types of bonds do not normally have expirations dates on them and are consider continuous until cancelled. So even if they produce a bond and it looks OK, you are better served to check with the insurance carrier to ensure it is still in effect.

One last thing, most all of these bonds have a conviction clause that states the insurance company will not pay out any claims unless the person is convicted of the theft.

Answer 2

Probably licensed with the Better Business Bureau or a similar organization and that they have insurance which is a big issue in that industry.

Answer 3

Licensed = Required by local laws to have a license to perform this work.

Bonded = Insured for doing the work, if they cause damage it is covered by insurance.

Answer 4

It basically means that they are running a legitimate business - paying taxes, paying to own a business in your district, treating employees correctly per the law, running their business per the law, and that they are insured (that's the most important part).