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The Construction Connection - California Contractor News, Notes & Legislation

Why Get A California Business Services Bond?

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Many consumers dread the thought of having strangers in their home or business to perform a specific task such as cleaning or painting because you never know who you can or can’t trust.  What if something gets stolen?  Because of this, many savvy consumers will check to see if the business they are hiring is bonded and may even avoid hiring those that are not.  So what is a business services bond and which businesses should consider carrying one?

What Is A Business Services Bond?

A business services bond is a type of surety bond that protects consumers from personal property theft by a dishonest employee of a hired business that enters their home or business.  The types of trades that often carry a business services bond are those that generally enter a customers home or business to perform a specific trade such as janitorial services, painting, appliance repair etc.  In fact, there are many different types of businesses that utilize a business service bond, with janitorial being one of the more common.

Unlike many types of surety bonds, a business services bond is often optional, meaning it may not be required by a federal, state or local agency, though each business will want to check with their regulating entity for specifics.   Rather, many diligent businesses choose to carry a business services bond as a way to show prospective customers they are trustworthy and stand behind the integrity of their employees, which just makes good business sense.  By providing an extra element of security and transparency for customers, a business services bond may help some businesses attract more customers than their non bonded competitors.

What Types Of Businesses Benefit From a Business Services Bond?


-House Cleaners


-Appliance Repairman

-Many Construction Trades

-Pet Sitter

-Home Health Care

-Security Guards

-Computer Repairman

-Carpet Cleaners

and many more…

How Does A Business Services Bond Work?

A business services bond works by providing your customer a level of security that you can pay back any claim, up to your bond amount.  For example, if a business carry’s a $25,000 business services bond and a viable claim is placed against the bond, then the bond claim would be settled by the surety with the business owner being responsible for making the bond company whole.  Unlike insurance, if there is a bond payout, the holder of the bond is responsible for repaying the claim plus expenses to the surety.

How Much Does A Business Services Bond Cost?

The cost for a business services bond is surprisingly low, starting at around $50 per year depending on the bond amount requested and number of employees for the business.  Also, unlike many other surety bonds, the underwriting for this bond is simple and is often not credit based, with each surety having their own guidelines.

Where Can I Get A Business Services Bond?

Getting a business services bond is fast and simple.  Just select “misc. commercial bond” under “bond type” in the quote form on this page and fill in your information, or give us a call to complete your quote over the phone.

About the Author:

Shortly after graduating from the University of California, Los Angeles with a bachelors degree in economics, Jeremy founded Surety First Insurance Services (formerly Schaedler Insurance), a Northern California based insurance agency specializing in surety bonds for California construction professionals. Jeremy is happily married and the proud father of two young boys. In his free time, he enjoys camping, fishing and shooting the breeze with friends and family.


Call us today at 1-800-682-1552 to speak with a licensed contractors bond specialist.

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