What does insured and bonded mean?

Question

and why does every cleaning company have that in their ads? how much to get insured and bonded and what is the process?? please let me know all details you can think of ! thanks

Answer 1

Advertisements for home cleaning services often state that the cleaning company is "bonded and insured." "Bonding" in this context usually refers to the protection afforded to the cleaning company's customer if an employee steals from the customer. "Insured" should mean that the cleaner carries liability coverage for personal injuries and property damage, as well as workers' compensation insurance (you should verify that this is what the cleaning company means by "insured").

While "bonded and insured" is a desirable distinction for a cleaning service, the insurance coverage carried by an individual cleaner or company should be confirmed. Different cleaners may purchase different bond and insurance coverages, which could provide markedly different degrees of protection.

You should ask the cleaning company for a certificate of insurance documenting the coverage in place. You might also contact the cleaner's insurance agent to verify the existence of insurance and liability limits, and to determine whether the cleaner's work in your home would be covered under the cleaner's policy.

The FDIC is also insured and bonded and so are mortgage brokers pricing depends on state some bonds are as low as $1,000.00 or as high as $250,000.00 it is asset based.

Answer 2

I don't know the process, but I can tell you what it means. For a cleaning company, "insured and bonded" means that they assume responsibility for your personal belongings while they are in there cleaning. If one of their employees breaks or steals something, the cleaner's insurance will compensate you for it.

My guess is that the process includes a thorough background check of each employee (when they're screened for hiring) who will be working in a customer's house, so the cleaner's insurance company can assess whether that individual is a good risk, i.e. "bondable." For example, if someone has several shoplifting convictions in their background, the insurance company would decline to bond that person. The cleaning company in turn would most likely not hire that person.

I don't know how much it costs, but the cleaner pays the insurance premuims (of course). For the background checks, the cleaner would probably pay for them directly or through fees assessed by their insurance company.

I found out about this a few years ago when my mom first hired cleaners to come to her house once a week. It's been a while, so I'm kind of foggy on the details. Still, I hope that helps you out.

Answer 3

Insurance would refer to general business liability insurance.

As to bonds:
If a specific business requires a license bond (i.e. contractor, motor vehicle dealer, notary, tax preparer, etc.), then they need to acquire the specific type of bond required. These bonds usually require credit and experience to support the amount of the bond. One site that can write these bonds even with poor credit is: www.southcoastsurety.com

The bonds you see referenced for cleaning services are a form of fidelity. These are written as instant issue bonds. They are relatively inexpensive. This bond protects the customers from theft by the company's employees.

The rates are based upon the number of employees and the amount of coverage. They range from a $5000 bond with less than 5 employees at $100 to a $100,000 with 25 employees less than $800.

These bonds are readily available on the internet or through local insurance agents. You can run a Google search for Janitorial Bond and find a site that has on line submissions. One of those sites processing on line applications is http://www.southcoastsurety.com

You can get more information on this bond and a link to the application at http://www.southcoastsurety.com/fidelity-bonds.htm

Answer 4

Insured, means you are insured against loss. If you or one of your employees breaks a client's mirror, then the insurance would pay for it. (Your rates may go up, but the mirror gets replaced...)

Bonded means that a bond, or an amount of money has been set in a bank or bond to protect each employee against loss. It is in addition to insurance.

You can get both of these froma good insurance agent.

Answer 5

Insured means they have liability insurance. If they fail to perform satisfactorily, you can look to their insurance company for monetary damages. Bonded means they have a bond. If they fail to perform satisfactorily, you can look to the bonding company for monetary damages.

Answer 6

These are three different items. Licensed, means that a governmental agency has given you permission to do something. It's very vague, so even if you have a driver's license, you can call yourself "licensed". However. to imply that the government has given you permission to run this senior care home, when they haven't, is a type of fraud.

Answer 7

insured means if something of yours gets broken or damaged they're insurance will cover it. Bonded means if one of their employees steals from you their insurance will pay for what is stolen.