Glossary of Business Credit Terms

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Janitorial Bond

What Is A Janitorial Bond?

A janitorial bond, like the name implies, is a legally binding contract between a janitorial business, their clients and a surety. A janitorial business in this case is any business or company that specializes in the cleaning of spaces, both home and office, carpets, and upholstery. The bond is taken out by janitorial businesses to protect their clients from theft by members of their employee while on the job. Janitorial bonds can also be called house cleaning service bonds, custodian bonds, business service bonds, cleaning bonds etc. It is meant for all types of cleaning services and businesses.

How Does A Janitorial Bond Work?

A janitorial business gets a contract or a job to clean a particular space, it could be a house or an office. The Janitorial business then takes out a bond with a Surety before commencing; with the business being the principal and the client being the obligee. If an employee working for the cleaning business steals and item or sum of money from the client during the course of the job and is found out, a claim is made against the bond and the Janitorial company is required to pay financial damages. If the business is unable to at that point in time, the surety steps in and pays on its behalf. The business is then legally obligated to pay back the surety.

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