Bonding

[gideon]

Hello! I am Melody from Mays Landing, NJ -- I already have a business name called "Gideon Cleaning" -- I named my business in honor of my father -- Gideon was his business name in the Philippines as a building contractor....

I called 2 insurance companies for quote and they will get back to me tomorrow....

With what you said about a client's complaint of missing items from "residence" or business.... are you saying that I need to be bonded at this time that I am just starting out doing residential clients?

[Crowz]

"With what you said about a client's complaint of missing items from "residence" or business.... are you saying that I need to be bonded at this time that I am just starting out doing residential clients?"

If you are just starting out, and it's just you, and you know you are not going to steal anything, insurance and bonding are not necessary.... but having a license, negligence, and honesty bonds looks good on all advertising and you will get more work. It's a trust factor. Not only that, but some company policies (if you intend to expand into commercial, even small companies) demand at least the two. For some reason people think a bond(s) is better than insurance. Bonding doesn't cost as much as you think. We paid $101.00 for one year of both neglegence & honesty bonds that cover 3 people. We have found that LLC or any other type of insurance is only necessary for the really big jobs, such as new construction cleans where the general demands it. It is also very costly. We were quoted just under $1000.00 for 3 people per year. Ouch! So, at least get the license and bonds if you intend to do more than just minor residential. If you can get your foot in the door with a home builder, present your license and bonds with the bid and if you get it then run out and buy the LLC! Just my advice and experience!

Natalie

[Grizzly]

Now here is an area where there are significant differences. In Ontario, it is my clear understanding after speaking with my insurance agent and lawyer that our employee dishonesty clause does not and cannot be deemed equivalent to a bond. A bond is a significant sum of monies held on deposit to protect against dishonesty and or performance bond etc. In fact we have had to take bonded off of our advertizing as we carry the insurance which we deem to be satisfactory at a 2500.00 per person per occassion limit.

Bill

[Crowz]

cynmar said:

Now here is an area where there are significant differences. In Ontario, it is my clear understanding after speaking with my insurance agent and lawyer that our employee dishonesty clause does not and cannot be deemed equivalent to a bond. A bond is a significant sum of monies held on deposit to protect against dishonesty and or performance bond etc. In fact we have had to take bonded off of our advertizing as we carry the insurance which we deem to be satisfactory at a 2500.00 per person per occassion limit.

Bill

The type of bond(s) we carry and give copy to all new clients state that there must be charges brought and the responsible party must be convicted before they will pay out. My good friend in Reno owns Best Contracting (a painting contractor) and on the job they did at the county jail they were requested to secure a bond of more than $30,000.00 and all employees working the job had to be "bond-able", meaning a clean criminal record. There are all kinds of bonds I suppose. We have had at least 4 perspective clients ask if we carry basic janitorial bonding. They are impressed when we hand them what we do have. Dunno why, but some actually prefer the bond over LLC. Maybe they are confused? I only know that it works.

Natalie

[rclllc]

what does a bond have to do with an LLC. an LLC is a limited liability company which has nothing to do with bonding. it is simply a business structure.

[Crowz]

rclllc said:

what does a bond have to do with an LLC. an LLC is a limited liability company which has nothing to do with bonding. it is simply a business structure.

Sorry, my misunderstanding. Duane at Spotless LLC told John (before we went into business and before he went out of business) that the LLC had to do with the insurance he carried. Thanx for telling me that. I can stop making a fool of my self now

Natalie

[rclllc]

no big deal. now you know

[sparklingsolutions]

What would you recommend $5000, $10000 OR $25000 BOND? I was thinking $5000 to start.

[dustandshine]

I got bond about month ago and purchased $10,000. Supposedly that's the minimum commercial accounts are asking for. At least here in Florida.

Joanna

[ninacarr]

Need help on places to call for quotes on geting bonded. Already insured but need to get bonded. Any suggestions/referrals. I live in Cedar Rapids, IA. Thanks

[sparklingsolutions]

Contact Nationwide Insurance. I recently got a quotes from them for $5000 was 112 a year, $10000 was 150.00 a year, and $25000 was 221.00 a year for janitorial service

[sparklingsolutions]

I would recommend to everybody if you are doing residential cleaning for the small amount to get the bond ASAP.