16 or more employees Bond - Business Services Bond 7c. ($150,000) in All States
Table of Contents
Brief Summary
When your crews work inside other people's homes and offices, the first thing a property manager or facilities buyer asks is whether you are bonded. This $150,000 business services bond answers that for a company with 16 or more employees, and it protects your customers if one of your people steals from them.
The Business Services Bond 7c. is a $150,000 fidelity bond for service companies with 16 or more employees whose staff work on customer premises, such as cleaning, maintenance and similar trades. It protects the company's customers against theft by the company's employees. The requirement comes from customers and service contracts rather than a licensing agency, so check the limit and wording your contract calls for before the bond is issued.
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How to Apply for a 16 or more employees Bond:
- Confirm the bond limit and wording required by your customer contracts.
- Count every employee who will be covered and confirm 16 or more.
- Provide the company's legal name, address and type of service work.
- Disclose any prior employee theft losses or claims.
- Complete the application and review the quoted premium.
- Pay the premium and keep the executed bond on file for customer requests.
Detailed Information About the All States 16 or more employees Bond:
Who buys this bond
Service businesses whose employees go into a client's home or workplace carry business services bonds because their customers require them. Commercial cleaning contracts, building maintenance agreements and residential service customers often want proof that the company is bonded before they hand over keys or alarm codes. This listing is the $150,000 limit for a company with 16 or more employees. The employee count on your application should match your actual headcount.
What it covers
The Surety & Fidelity Association of America describes a fidelity bond as protection against financial losses caused by employees' dishonest misconduct. A business services bond points that protection at your customers. If one of your employees steals money or property from a client while working at the client's location, the client can recover the loss under the bond up to the $150,000 limit, subject to the bond's terms.
What it does not cover
It is not liability insurance. Accidental damage, injuries and poor workmanship belong under a general liability policy. It also does not protect your own company against employees stealing from you. That is a separate first party fidelity or employee dishonesty policy.
Where the bond goes
The obligee is your customer base, not a state office, so nothing is filed with a government agency. The executed bond stays with your company, and you provide a copy or certificate to customers who ask. If a contract spells out a specific bond limit, wording or named obligee, send that language with your application so the bond matches it.
What it costs
The premium is set by the surety from the bond limit, the number of employees covered, the type of service work and the company's loss history. Expect questions about hiring and screening practices and any prior employee theft.
Eligibility and Requirements for an All States 16 or more employees Bond:
- Bond limit of $150,000.
- Employee count of 16 or more.
- Company name on the bond matching the name on customer contracts.
- Employees performing work on customer premises.
- Renewal each term to keep customers covered.
All States 16 or more employees Bond FAQs:
Customers, property managers and service contracts. The requirement is written into the work agreement rather than a state license, which is why most service companies that work on client premises carry one.
Your customers. If one of your employees steals from a client while working at the client's location, the client can recover the loss under the bond up to the $150,000 limit.
No. That is first party employee dishonesty coverage, a separate product. This bond protects your clients.
No. Property damage and injuries are covered by liability insurance. This bond responds to employee theft from customers.
The surety prices the bond by how many employees are covered. This listing is for companies with 16 or more employees at the $150,000 limit.
