How to Get Bonded and Insured for Pressure Washing
No matter how large your pressure-washing business is, you should obtain insurance and surety bonds to protect your business and the businesses for which you work. A surety bond is a guarantee that you will perform your pressure-washing duties according to the terms of the contract between you and a third party. The third party recovers any financial losses as a result of your failure to perform according to the contract. Business insurance protects you and third parties from losses that occur during the course of business, such as property damage or employee injuries.
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Instructions
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Understand what surety bonds are. There are three types of surety bonds: bid bonds, performance bonds and payment bonds. Bid bonds ensure that bids on pressure washing work are submitted in good faith. Performance bonds protect businesses from losses should you not perform your pressure-washing duties according to the contract. Finally, payment bonds ensure that you will pay any subcontractors, laborers and for materials needed to complete the projects.
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Obtain a surety bond from a local surety bond producer. Surety bond producers are the officials that complete the bonding process. They review the business needs of the entities with which you contract, along with contracts between you and third parties. Surety bonds are not the same as business insurance, which you must purchase separately. Before obtaining bonds for your various contracts, compare the rates and reputations of several surety bond producers. Ask other businesses about recommended surety bond producers to help you find the best match.
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Review the types of insurance applicable to pressure-washing businesses. There is liability insurance, workers compensation and equipment insurance. Liability insurance covers your business should something go wrong on your job, such as property damage that your employee caused at the work site. Workers compensation covers medical expenses and lost wages if your employee(s) suffer work-related injuries. Finally, equipment insurance reimburses you for damage to your vehicle and pressure-washing equipment.
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Obtain insurance for your business. Locate business insurance providers in your area and over the Internet. Before choosing an insurance provider, compare rates and reputations of your providers. Ask fellow business owners that you know about their insurance providers. Once you contact an agent, meet to discuss your insurance needs. The agent will tell you, for example, what insurance is required by state law. He will guide you through the process of securing insurance --- for example, what documents, such as your business registration certificate, to bring to his office.
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