What is a Business Services Bond?
A business services bond is a type of bond companies purchase to protect them from theft, fraud, or larceny committed by the owner or employees while they’re on the clock. Both for-profit and non-profit businesses that work in a customer’s home or office may choose this bond to show professional credibility and ease customer concerns about having workers in their personal spaces.
If your company falls under one of the following categories, you may consider buying a business services bond:
- Courier or messenger services
- Elderly or childcare
- Home health care
- Household or business cleaning
- Landscaping and groundskeeping
- Locksmiths
- Moving
- Painting
- Pool cleaning and repair
How Does a Business Services Bond Work?
A business services bond is essentially an agreement between the business owner and the surety company. The business owner pays the bond company a fee in exchange for the bond.
Say, for example, a worker steals money hidden in a customer’s air conditioning duct. The customer can file a claim with the surety company to get reimbursed for what they lost. The surety company will investigate the customer’s claim and decide whether to approve it. The customer will need to file a police report and wait for the worker to be convicted of the crime in court before the surety company will pay the claim. This helps prevent fraudulent claims.
Pricing & Application Process
The cost of a business services surety bond is based on the bond amount requested and number of employees to be covered.
To apply for a business services bond, complete the online application. You can choose the bond’s effective date and submit payment online.
Business services bonds are not requirements like license bonds or contractor bonds. A company buys this bond to show that customers can trust it and its workers. This can help distinguish them from competitors who don’t offer a similar assurance.
When you buy a business services bond, it stays valid for one year. After that, you’ll need to renew the bond and pay a new fee. This enables the bond company to reevaluate your business and employees.
Business services bonds are not requirements like license bonds or contractor bonds. A company buys this bond to show that customers can trust it and its workers. This can help distinguish them from competitors who don’t offer a similar assurance.
When you buy a business services bond, it stays valid for one year. After that, you’ll need to renew the bond and pay a new fee. This enables the bond company to reevaluate your business and employees.
- Click the Buy Now button.
- Fill out the easy bond form.
- Confirm your order and select how you would like your bond documents delivered. Email or regular mail.
- Pay for your bond.
- If you chose to have your documents emailed, you will receive them within minutes.
It’s that simple and fast!
Bond Purchase Process
1. Find Your Bond
2. Secure Pricing
3. Buy Online
Get Started
The bonding process can be confusing and cumbersome. Our surety bond experts are standing by and ready to answer any questions. Let’s get you bonded today!
Frequently Asked Questions
There are hundreds of different bonds for all kinds of purposes—but regardless the industry or project—they all operate essentially the same way. A surety bond guarantees that you will operate professionally and if you break the rules, a claim can be made on your bond which you’re responsible to pay.
It’s a guarantee that you will complete the work and fulfill your contractual obligations. Think of it as insurance for the public, not your business.
The entity requiring the bond (the obligee) will determine whether a bond is required. Bond requirements vary greatly by your occupation and location. However, fidelity bonds are insurance and are usually optional to obtain.
For the most part, yes. Bad credit can increase rates for license and permit bonds and most can also get approved for fidelity bonds regardless of credit. For contract bonds, larger contractors with poor credit can be approved with strong CPA-prepared business financials.
You must fulfill the terms of the bond obligations, which vary immensely depending on bond type. Where you obtain your surety bond is important when it comes to understanding claims and avoiding them entirely. If you have any questions about what your bond does or doesn’t guarantee, reach out to our experts to help guide you along the way.
Looking to Get Started or Have Questions?
The bonding process can be confusing and cumbersome. Our surety bond experts are standing by and ready to answer any questions. Let’s get you bonded today!