Bonding Coverage

[windowwasher86]

I am in the middle of launching a window and gutter cleaning service. I am the only person working, I have no employees other than myself. I will be retaining Business Liability Insurance.

Here's my question...

Since I am the only one working, and I will only be working in the prescense of all of my customers, do I really need bonding coverage? Or will it just look assuring to customers?

In my opinion, since the customers will always be able to watch what I'm doing, and I have no employees (no theft issues), I think liability coverage would be assuring enough to portray the image I am a carefull, skilled worker (which I am, of course!).

I could be wrong about the whole bonding coverage thing, that's just what I understood it basically was. Just protection against theft, dishonesty, stuff like that.

Someone help me! I'm a really young guy getting into all of this, and while rewarding, it's also overwhelming.

Thank you so much.:cool:

[tylerhutchinson]

I know of many people who are starting their own businesses similar to what you are doing that started with no liability insurance at all. I would personally think that normal liability insurance is fine. I would think with those services few would ask if you are bonded anyways.

I will ask some of the people I know who are doing this and see what their thoughts are as well and post. :)

[seolman]

Quite frankly - it really comes down to what you can afford and your own knowledge of what the market expects you to have. If >90% of your market expects you to be bonded than it may be important to be bonded. As Tyler mentioned - from a pure risk perspective normal liability insurance would probably be fine - and this may be something you want to highlight (example - add the words "insured" to your promotional materials).

[windowwasher86]

good points, both of you. i completely agree knowing what the market is doing is a good idea. ill check around and see what the competitors are doing.

[GreaterVisibility]

We've been cleaning for over a decade. We have no employees, and are not bonded. We do have a business insurance policy, and that has been sufficient for us whether we've been cleaning windows, houses, apartments, vehicles, carpet, offices, museums, etc. Some people may ask about bonding, but it maybe has been one or two in all of these years, and we just explain that it's just us and that we're insured. Often people ask questions simply because they've heard it. Some people think that being insured is synonymous with being bonded. It's just typical terminology used by people in a sales pitch, but isn't necessary at all in our experience.