You’ve probably seen “Bonded and Insured” on signs, ads, and vans for companies providing certain services. But what does that mean, and how can it help your business build trust with your customers?
What does “Bonded & Insured” mean?
The “insured” part means the contractor in question has liability insurance, which covers accidental damage or injuries. Bonds are a different kind of insurance. Business Service Bonds—or Janitorial Service Bonds—specifically cover the cost to replace items employees steal from the home.
If an employee from a bonded company is convicted of stealing, service bonds will reimburse the item’s owner for its cost.
Service Bonds vs. Crime Policies
There’s usually a limit to the amount a service bond will cover. That’s fine if employees work in the average home with fewer extremely high-cost items. If a company’s workers have access to high-value items or work directly with a client’s funds, however, a crime policy might be a better investment.
Crime policies have broader coverage and higher limits, which makes them ideal for the risk of high-dollar theft. This broad coverage and higher limit, however, comes with more underwriting or eligibility requirements. It’s also a more considerable investment because it comes with higher premiums.
Using Bonds to Build Trust
In the modern-day and age, building trust is a business’s best marketing tool. Service bonds show customers that the company has been investing in keeping their possessions safe since before they even met. Before they engage in the customer relationship, the client consciously or subconsciously knows their home is safe with your workers.
What makes service bonds even better for marketing purposes is that they’re relatively easy to purchase. A company needs only to give their basic business information, the number of employees they have, and the limit they wish to purchase. These limits can go as low as $10,000 and as high as around $100,000. Moreover, bonds last for one-, two-, or three-year periods, so a business owner doesn’t have to think about their bond on a yearly basis.
Once a business has its service bond, it can advertise it on its signage. These bonds are an easy and affordable way for businesses to show their clients that they’re a trustworthy company. It’s important to note, however, that not all insurance policies or bonds are created equal.