Do surety bonds apply to individual workers, or just the whole company?

Nina L. Kaufman, Esq.

Nina L. Kaufman, Esq.

An award-winning small business attorney in New York City, Nina is a sought-after professional speaker and Entrepreneur Magazine online contributor. She is the go-to counsel for knowledge economy and creative companies, delivering legal services and educational resources that save them time, money, and aggravation.

Posted on April 18, 2015 in Business Essentials

Q.: I will be providing a maid service as an independent contractor and will start with one or two maids but don’t know how surety bonding works. If I am an independent contractor for a maid service, do I have to bond each maid, or just have one bond for the company? Also where, and how do I get this?

A.: The best place for you to start is to develop a relationship with a small business insurance broker.  If you are a member of your local Chamber of Commerce, chances are you’ll be able to meet services providers in your local area.

Small business insurance brokers will be able to outline all of the different kinds of small business insurance protection that you may want to have – especially if you are going into people’s homes and there’s the risk of claims of breakage or theft (even if trumped up).  Many companies have both general business insurance as well as surety bonding for the company – to cover any damages created by their employees.

I encountered a maid service in Seattle, WA that also took out “honesty bonds” on each employee.  A business insurance broker should be able to let you know which small business insurance and/or surety bonds are required in your state, and which ones you’ll want to have to ensure you sleep restfully at night.

Here are more law questions about small business insurance.

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