What is a Fidelity Bond?
A fidelity bond, also known as a janitorial service bond or employee dishonesty bond, is a specialized surety bond for the cleaning industry.
Protects customers against financial losses caused by theft of money, property, or valuables by employees while working on the client’s premise.
Guarantees reimbursement to customers if an employee steals from them.
Covers theft or dishonest acts committed by employees
Builds trust and assures customers they will be compensated for losses.
Fidelity Bond Types
Janitorial
Agrees to indemnify against loss of money or other personal property belonging to subscribers to its services; because of any fraudulent or dishonest act, of an employee(s) of the Obligee.
Example: In-home maid services or office cleaners with access to client money or property.
Employee Dishonesty
Agrees to indemnify against loss of money or other property which the insured sustains or which the insured incurs liability to a customer through fraudulent or dishonesty acts committed by an employee. Board members and volunteers can also be covered via endorsement.
Example: Non-profits, scout troops, HOAs, dog walkers.
Who Needs a Fidelity Bond?
Any provider with access to customer property or valuables benefits from being bonded.
Independent cleaners or small teams seeking credibility and a professional image.
Residential maid services entering private homes and apartments.
Carpet cleaning, window cleaning, and floor maintenance providers who work around valuables.
Janitorial and commercial cleaning companies handling office and industrial properties.
Key Features of a Fidelity Bond
Culprit
Employee(s) while in the direct service of the insured during the ordinary course of business and is directed and compensated for their service by the insured.
Conviction Clause
Common so that the employee(s) must be tried and convicted of the dishonest or fraudulent act by a course of proper jurisdiction.
Deductible
Common to include.
Benefits of a Fidelity Bond
Competitive Advantage
Potential clients may be more included to choose your services because of the added security a bond offers
Enhanced Trust
Helps build trust between a business and clients, making them more likely to use their services
Professionalism
Being bonded demonstrates that a business is serious about taking responsibility for the actions of the employees.