Are you Insured and Bonded, Ken?

(Do you even know what bonding means?)

10/6/22 Update: Carfagno Cleaning servicing homes and offices as a solo operator (just Ken) changed in July 2021 to the Carfagno Commercial Cleaning. The C3 Experience NO LONGER serves homes. Our niche is professional office spaces like medical, financial, and professional. C3 is building a team of employees. As I stated in this article, employers MUST have bonding. C3 is fully insured and fully bonded. This original article is still very useful for non-employers. 

Original Article: I'll keep this article short and sweet. I am fully insured. I am NOT bonded. Read my last article called "Do You Do Contracts?". I share that solo-operating companies do not need contracts due to reduced liability & legal disputes. When it comes to insurances for cleaning companies, most companies purchase three: General Liability, Crime Bonding, and Worker's Compensation.

1. General Liability - I've already explained the General Liability insurance piece in this article. Every professional company MUST carry at least $2 million in annual coverage. Don't hire a company that does not.
2. Crime Bonding - The second piece is called a Crime Bond and answers the sub-titled question. Do you even know what bonding means when you ask cleaners for it? Bonding is the simplified term for Crime Bond Insurance. Bonding insures the home or office client against theft of personal property from the cleaning company. Insurance companies cannot require, but they HIGHLY RECOMMEND that all cleaning companies with employees obtain this bonding to give their clients peace of mind and protect against claims court. I completely agree. The insurance companies do not recommend that solo companies (where the owner is the only cleaner in the house) obtain this insurance. I purchased bonding in my first 3 years of business in New York but eliminated it when I stopped using employees in my business model in 2008. I have always been upfront and honest. Here's the deal. I am a trustworthy person and would never and have never stolen anything from a client's home or office. I am hired and paid more because of the trust I earn along the customer journey. If a client asked me to get it now, I would purchase it and increase my prices for the client that requested it. How could you do that, Ken? It's business. No one has requested bonding for 13 years. If one client required bonding to hire me, I would certainly purchase the insurance and add it to their price quote. Look at the picture in this article. Do I look like that?! One final note on the crime bond. When I hire again down the road for office cleaning, I will absolutely purchase the Crime Bond for my company as it's the right thing to do. Cleaning companies do their best to hire the best and most-trustworthy employees, but bad things do happen. That's why crime bonding exists.
3. Worker's Compenation - Each state's worker's compensation board requires all employees to carry this insurance. The employer must therefore purchase it. However, there is a provision in every state (I believe) for owner-operated companies. We don't need worker's comp for ourselves. We can purchase it, but it's not necessary. I do not carry it for myself. However, I did purchase it for my son who is now on the payroll.

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I'll close this article with a quote from my insurance agent and friend.

"Insurance is a tool of risk management." - Andrew Rumbold, RA Fraser Agency