Janitorial service surety bonds help protect customers from losses incurred as a result of ethical misconduct or failure to render services. These bonds are also referred to as housekeeper, maid, or residential surety bonds.
Janitorial bonds can provide companies with a legally backed assurance while also protecting the company from potential losses. The specific bond amount a janitorial service might require varies depending on the size of the company and the types of jobs they handle.
Janitorial service bonds are legally-binding contracts between three parties:
- The obligee—is the government agency recognizing the janitorial service bond
- The principal—the janitorial service purchasing the bond
- The surety—the underwriter providing the janitorial service bond
A surety bond is not an insurance policy. If the janitorial service does not meet their contractual obligations, a claim may be filed against the bond. The janitorial service is liable for their own contractual obligations and must repay the surety bond for any damages incurred.
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