Though every cleaning service seems to throw around the words “licensed, bonded, and insured,” not all of them are telling you the truth. Always check with your locality’s licensing bureau and state’s Division of Corporations to ensure the business is actually licensed. Without the proper licensing and if you’re paying any personnel in cash, there may be tax implications. This is because the person you’re paying isn’t considered an employee of the company you hired, but a household employee.
What does “bonded” mean? Fidelity bonds comes in two forms: first-party and third-party. While first-party only protects the business’s interests, third-party protects you from stolen property so make sure the business you’re hiring is bonded to provide coverage to third parties.
Last but not least, always ask to see a company’s certificate of insurance to make sure it has the right coverage that will cover any mishaps to your property. You need to make sure their insurance policy includes the broad form property damage endorsement. This is extremely necessary because it covers your property in the event of any accidents.
Do They Have Worker’s Compensation?
Worker’s compensation insurance is something that should also be looked into when hiring a cleaning service. A multitude of companies fail to offer their employees fair benefits, which can cost you a fortune. Even if you carry home or renter’s insurance, which covers you for visitors, it does not apply to someone hired to work on your property. As a result, if that worker is injured on your property and the company doesn’t have worker’s compensation insurance, you could be liable to pay for their medical costs.
Life comes with a lot of unpredictability, but your cleaning service shouldn’t have to be. Always watch out for dishonest companies by doing a little research so you can save yourself a world of trouble in the long run.