Who Needs Theft Guard Janitorial?

Theft Guard Janitorial coverage is a fidelity bond created specifically for janitorial services that have exposure to employee dishonesty from the employee entering a customer's premises.

It provides coverage to the employer for an employee who steals from a subscriber or customer of the business. No coverage applies for the employee stealing from the employer. In the event the employee performs a dishonest act, the subscriber may make a claim against the janitorial service, and the janitorial service may make a claim against the bond.

Is the Janitorial Services  Business Covered if the Employee Steals from It?

No, the coverage will only pay for losses the business sustains as a result of an employee stealing from a subscriber.

Are the Business Owners Covered?

No, business owners are not typically covered by Theft Guard Janitorial. This bond is designed to protect the business if an employee steals from a subscriber of the business and the subscriber makes a claim against the business. If the owner(s) of the business are the only employees of the business, Merchants Bonding Company can consider a rider which covers the owners as employees and allows the subscriber to make a claim directly against the bond.

Does the Employee have to be Convicted of the Dishonest Act?

Yes, the employee has to be convicted in a court of proper jurisdiction for coverage to apply. Often things are missing in businesses and it is easy for the subscriber to blame the cleaning people. This conviction clause prevents the blame from being placed on the employee of the janitorial service inappropriately.

What is a Conviction Clause?

This clause in the bond language requires a conviction for the dishonest act before payment on the bond. The only exception to the conviction clause is the state of Georgia.

How is Premium Calculated?

Premium is based on the amount of the bond and number of employees covered. Periodically, Merchants will require an update on the number of employees covered and calculate the renewal premium accordingly.

Can the Subscriber Make a Claim Directly on the Bond?

In most cases subscribers will not make a claim directly. They can make a claim against the janitorial service and the owners would then submit a claim against the bond. If Merchants has attached a rider to cover the owners of the janitorial services business, the subscriber can come directly to Merchants with a claim.

How do I get a Surety Bond?

Surety bonds are issued by Merchants Bonding Company (Mutual) through insurance agents. Contact your local insurance agent or use our Find an Agent tool. They will guide you through the process, informing you of what documents and information are needed by the surety (Merchants Bonding Company (Mutual)) to underwrite your bond.

What is a Surety Bond?

A surety bond is a three-party agreement that ensures the fulfillment of a commitment or contract. For instance, the surety (Merchants Bonding Company (Mutual)) may provide a surety bond to a construction company (the principal) which is required by the state (the obligee), ensuring the construction company will perform the duties as outlined in the contract. In bonding the construction company, Merchants assumes the risk should the company default or not fulfill their contract. A surety bond is different from traditional insurance in that the principal is obligated to pay back the surety company on any claims paid out.

All information provided is subject to change without notice.