Surety Bond Encyclopedia

16 or more employees Bond - Business Services Bond 3c. ($10,000) in All States

Brief Summary

Business Services Bond 3c puts a $10,000 limit behind a business with 16 or more employees. It lets a larger crew answer yes when a customer asks if you are bonded, without buying a bigger limit than the customer asked for. If one of your employees steals from a customer's property while working there, the bond protects that customer up to $10,000.

This is the $10,000 Business Services Bond for companies with 16 or more employees, listed as tier 3c. It is a voluntary third party fidelity bond, not a state license bond, so no statute sets the amount. Cleaning, janitorial, home care, moving and contractor companies with larger crews use it to show customers they are bonded against employee theft.

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How to Apply for a 16 or more employees Bond:

Confirm your current employee count fits the 16 or more employees band.
Ask the surety how it counts employees, including part time and seasonal staff.
Have the legal business name and address exactly as they should appear on the bond.
Check any customer contract for a required bond limit or specific bond wording.
Complete the application and review the premium quoted for the $10,000 limit.
Pay the premium, receive the bond, and keep a copy ready for customers who ask for proof.

Detailed Information About the All States 16 or more employees Bond:

Check your headcount first

This listing is one combination: a $10,000 bond limit for a business with 16 or more employees. Business services bonds are sold in employee bands of 6 or less, 7 to 15, and 16 or more. The District of Columbia Department of Insurance, Securities and Banking notes that bond amounts are often determined by the number of employees and the venue where the company will operate. This band fits any business with 16 or more employees. If you have 15 or fewer, this tier does not describe your business. Ask the surety how it counts employees, for example whether part time or seasonal workers are included, before you apply.

What the bond does

A business services bond is a third party fidelity bond. The Surety and Fidelity Association of America describes fidelity bonds as protection against financial losses caused by employees' dishonest misconduct, and lists Employee Dishonesty Bond as another name for them. The business services version points that protection at your customers. DC DISB puts it plainly: janitorial service bonds protect your clients if one or more employees steal from your company or the property where they are working. On tier 3c, that protection runs up to $10,000.

Know what $10,000 covers

The limit on this tier is $10,000. That is a modest figure for a company with 16 or more employees working on customer property, so check what your customers actually ask for. If a contract names a higher limit, this tier will not satisfy it. Ask the surety whether the $10,000 applies to each loss or to the whole bond term, so you can answer a customer accurately when they ask.

It is not a license bond

No statute requires this bond and it is not filed with a state agency. Customers and contracts ask for it. If your city, county or state license for your trade calls for its own bond, that is a separate requirement. DC DISB advises checking with your licensing or permitting authority to find out.

Eligibility and Requirements for a All States 16 or more employees Bond:

Bond limit of $10,000, listed as tier 3c.
A business with 16 or more employees.
Your business is the principal. Your customers are the people the bond protects.
Protection tied to theft by your employees from a customer's property where they are working.
A voluntary bond. It does not replace any license bond your city, county or state may require.

All States 16 or more employees Bond FAQs:

Who does this bond protect?

Your customers. DC DISB describes janitorial service bonds as protecting your clients if one or more employees steal from your company or the property where they are working. On this tier the limit is $10,000.

Is this bond required by law?

No statute requires a business services bond. It is a voluntary bond that customers and contracts ask for. Some trades need a separate license bond, so check with your licensing or permitting authority.

Is $10,000 enough for my business?

It depends on what your customers require. If a contract or vendor packet names a bond limit, match that number. If no limit is named, $10,000 still lets you tell customers you are bonded against employee theft.

Does the $10,000 limit reset after a claim?

Ask the surety before you buy. Whether the limit applies per loss or to the whole term is set by the bond wording, and it matters when you tell a customer what they are protected for.

How is the price set?

The premium is quoted for this exact pairing of a $10,000 limit and 16 or more employees. You see it when you apply.