Running a Cleaning Business

Do Short-Term Rental Cleaning Businesses Need to be Bonded?

Bonding ensures your short-term rental cleaning business is trusted and protected. It safeguards clients from potential losses while boosting your credibility in a competitive market. Learn why bonding matters, how it works, and how it can help you secure more clients with added peace of mind.

By Insurance Canopy

Last updated: December 18, 2024

The following is a guest article by Insurance Canopy, part of our ongoing series on insurance for Airbnb cleaning businesses.

Why Bonding is Essential for Short-Term Rental Cleaning Services

When it comes to running successful Airbnb cleaning services, one question often comes up: do you really need cleaning business bonds, and why? Learn the ins and outs of bonding — from why it matters for your business to how it can help you build trust with your clients.

Cleaning crew cleaning kitchen for a turnover

What Is Bonding and How Does it Work?

Bonding is a way to guarantee your clients are financially protected if something goes wrong. For example, if a client claims that your business caused damage, theft, or didn’t complete a job, the bonding company steps in to cover the loss.

Here’s how it works: If your Airbnb cleaning services don’t live up to your promises or something goes wrong (like dishonesty or damage), the client can file a claim on your bond. 

The surety company will check out the claim. If it’s valid, and the accused employee is convicted of the dishonest act and/or theft, it will cover the client’s losses up to the bond’s limit. After that, the convicted employee will be sought out for repayment of the claim amount. It’s like a backup plan that helps protect both your client and your business.

Here are a few scenarios to illustrate:

  • Theft: A client accuses one of your cleaners of stealing something. The bond covers the cost. (The cost of the claim up to the bonded limit, and only if the employee is convicted of the crime in the court of law). 
  • Damage: An expensive item gets broken during cleaning (due to negligence or with intentions). The client can file a claim, and the bond helps with compensation.

In each case, bonding protects both your client and your business.

What Are the Different Types of Bonds for Cleaning Businesses?

Here’s a quick look at two types of Fidelity Bonds that could be especially helpful for Airbnb cleaning services:

Fidelity Bonds

Protect an employer from financial or property losses due to employee theft or fund mismanagement

Bond TypeBusiness Service Bonds (aka Janitorial Surety Bonds)ERISA Bonds
What It DoesProtects a business against financial loss from employee theft.Protects a plan from losses due to fraud or dishonesty.
How It WorksIf a customer files a complaint, the business claims the bond, and the surety investigates and compensates if valid.If a fiduciary (person trusted to manage assets) embezzles from a benefit plan, the ERISA bond covers the losses.
Why It’s ImportantBuilds trust by covering theft losses and boosts the business’s edge.Bonds fiduciaries to prevent fund mismanagement, safeguarding participants’ rights.

3 Reasons Your Cleaning Business Should Consider Bonding

Bonding is essential for Airbnb cleaning services — here are three ways it can help you thrive in a competitive market.

Fulfills Client Expectations

Today’s short-term rental hosts expect more than just clean spaces—they want accountability and professionalism. Being bonded shows you’re serious about your work and gives clients peace of mind. If something goes wrong, like property damage or theft during cleaning, they know they’ll be covered. Many hosts actively seek bonded services, which can help you stand out and attract more bookings.

Meets Regulatory and Contractual Requirements

Bond requirements in some states mandate that cleaning services obtain bonding to comply with local regulations, particularly when working with high-value properties. Without cleaning business bonding, you could miss out on contracts or face penalties. 

Additionally, being bonded can help you attract larger clients. Property management companies and real estate agencies often require it in vendor contracts to minimize their risk.

Mitigates Business Risks

Accidents can happen, especially with fast-turn rental cleaning assignments. Bonding protects your business from financial losses due to damages or employee misconduct. 

It reassures your clients that they’re covered and demonstrates that you have safeguards in place to protect everyone involved. Bonding insurance for cleaning businesses also enhances your credibility, and makes clients feel more confident in choosing your services.

Pairing this protection with Turno’s auto-scheduling and payment features helps mitigate risks and keeps your business running efficiently. You’ll save time, reduce errors, and ensure every cleaning job is completed without hassle.

A Step-by-Step Guide to Securing a Bond

  1. Decide what type of bond you need: For most cleaning businesses, a business service bond will cover essential needs. If you handle employee benefit plans, an ERISA bond is necessary.
  2. Check the bond requirements: Different bonds have different rules. Research the bond amount, conditions, and what’s expected from you.
  3. Select the coverage limit: Cleaning businesses typically opt for coverage limits of $25,000 or less, especially if they serve small to medium clients or homeowners. Ensure the limit you choose aligns with your client’s property value or contractual requirements.
  4. Fill out the application: Provide your business details and contact information.
  5. Get approved and pay for the bond: Business service bonds are approved instantly. After the instant approval, you will be directed to the payment screen where you can pay via credit or debit card for the bond premium, which is a small percentage of the bond limit. 
  6. Receive and display your bond: After you’ve secured the bond, display proof of bonding on your website and in client proposals. This can make a strong first impression and reassure prospective clients.

Pro Tips Before Purchasing 

  • Know the costs: Bond premiums usually range from 1% to 15% of the total bond amount, depending on your credit and the risk involved.
  • Review the terms: Before finalizing, make sure you understand the bond’s terms, including when claims might be made against it.
  • Get referrals: Ask colleagues or friends if they can recommend a bond provider. Referrals can make finding a reliable company easier.
  • Use industry resources: Check with industry associations for lists of trusted providers.
  • Check customer service: Choose a company that’s responsive and helpful—they’ll make the process smoother.
  • Verify credentials: Make sure the provider is licensed and financially stable so they can back up their bond.

Bonding vs. Insurance: Key Differences Explained

Understanding the difference between bonding and business insurance is crucial for your cleaning company. Here’s a quick comparison:

AspectBondingInsurance
PurposeProtects property owners from potential losses or damages caused by cleaners.Protects cleaning businesses from financial losses due to accidents or damage during cleaning.
CoverageCovers narrow risks, such as cleaning employee theft or property damage during cleaning services.Covers broader risks for (any) third-party property damage or injuries 
Who It ProtectsProperty owners / cleaning business clients The cleaner or cleaning business  
Regulatory / Contractual RequirementOften required by property owners, managers, or platforms, may be required by law.Often required by property owners, managers, or platforms; essential even if not required by law.
Cost StructureUsually a one-time premium or fee based on the bond amount and risk.Ongoing premium payments based on coverage limits, risks, business size, and more.
Claims ProcessProperty owners can make claims against the bond for failure to meet obligations.Cleaners can file claims to recover losses due to covered risks.
DurationBond duration is typically project-specific or for a defined cleaning period.Insurance policies are usually annual and renewed based on coverage needs.

FAQs About Cleaning Business Bonding

What kind of businesses need to be bonded?

Airbnb cleaning services and other short-term rental cleaning businesses often need to be bonded. Plus, the kinds of cleaning businesses that clean sensitive or high-value properties, like luxury rentals or those with significant assets, typically require bonding to protect against potential risks.

How do I know if my business needs to be bonded?

To determine if your Airbnb cleaning business needs to be bonded, check local regulations related to short-term rentals in your area. Some municipalities require bonding for cleaning services that work with vacation rentals. Consult with local property management associations or legal experts to get clarity on bonding requirements specific to your market.

What is the meaning of bond cleaning?

In the context of Airbnb, bond cleaning refers to a thorough cleaning service that ensures the property is returned to its original condition after a guest’s stay. This type of cleaning helps hosts maintain high standards for cleanliness and can improve guest satisfaction.

Invest in Bonding for Business Success!

Being bonded shows your clients you’re serious about protecting their properties and gives them peace of mind. Plus, when you pair that with Turno’s features — like easy client communication, customizable checklists, and real-time scheduling — your operation will run smoother than ever.

With bonding and handy tools like Turno in your corner, you’ll boost your credibility and set your Airbnb cleaning business up for success. Check out Insurance Canopy for your cleaning business insurance as well as your business bonding needs. They can help you find the right coverage to protect your business and keep your clients happy. 

So go ahead, invest in bonding, and watch your business thrive!