Bonded and Insured: What It Means for Cleaning Companies

“Insured” means the cleaning company carries general liability insurance that covers damage they cause to your property. “Bonded” means a third-party surety guarantees compensation if their employee steals from you or breaks a contract. Most reputable commercial cleaning companies in Ontario carry both. Property managers and procurement officers require both before signing.

What “insured” means for a cleaning company

When a cleaning company says they’re insured, they’re usually talking about commercial general liability insurance — coverage that protects you (the client) if the cleaner damages your property or injures someone while doing the work.

Common scenarios it covers:

• The cleaner knocks over a $4,000 monitor while dusting.
• A wet floor sign is missed and a tenant slips.
• A pressure washer breaks a window.
• A chemical spill damages carpet or flooring.

The standard minimum in the GTA is $2 million per occurrence. Larger commercial buildings, REITs, and healthcare facilities often require $5 million. Property management companies will refuse to sign with anyone below their threshold — usually $2M, sometimes $5M, and they’ll ask for a Certificate of Insurance (COI) listing them as additional insured.

You should also expect WSIB clearance — proof that the cleaning company pays into Workplace Safety and Insurance Board coverage for their employees. If a cleaner gets hurt in your building and the vendor isn’t WSIB-registered, that liability can find its way back to you.

What “bonded” means for a cleaning company

Bonded is different. A bond is a guarantee from a third-party surety company that compensates you if the cleaning company’s employee commits theft, fraud, or breaches the contract terms.

Common scenarios it covers:

• A crew member steals petty cash, a laptop, or jewelry.
• An employee defrauds you (forged invoices, fake hours).
• The contractor fails to perform the work as agreed in writing.

The standard product is a janitorial services bond (sometimes called a fidelity bond). It’s not the same as insurance. Insurance is the cleaning company’s coverage for accidents. A bond is the cleaning company’s guarantee against bad acts. If a claim succeeds, the surety pays you and then collects from the cleaning company.

Bonding is especially important when cleaners are working after-hours in unoccupied buildings with valuables present — offices with electronics, condo amenity rooms with cash boxes, medical clinics with controlled substances. The bond is the contractual answer to “what stops your overnight crew from stealing?”

The difference in one table

Why GTA property managers ask for both

If you’re a property manager hiring a janitorial vendor, your reputation and your owner’s NOI depend on the building running cleanly. A vendor who’s only insured covers accidents but leaves you exposed to theft. A vendor who’s only bonded covers bad acts but leaves you exposed to damage. You need both.

The order of operations in a typical procurement process:

1. Request for Proposal goes out. $2M general liability is a mandatory requirement — pass/fail. Bonding is also typically mandatory or strongly preferred.
2. Proposals are screened. Anyone who can’t produce a current COI is disqualified on the spot.
3. The successful vendor’s insurer adds you as an additional insured on the policy. You receive an updated COI showing your building name.

This is standard. If a cleaning company hesitates to produce any of these documents, that’s the answer.

What about smaller offices?

If you’re an office manager hiring for a small or single-tenant office, you still need both — you just won’t run a formal RFP to verify them. Ask for the COI and bond certificate before signing. Most reputable vendors send them with the proposal. If they say “we’ll send it after you sign,” that’s a sign to keep shopping.

How to verify before signing

1. Request the Certificate of Insurance. A real COI shows the insurer’s name (a recognizable Canadian insurance company), policy number, effective and expiry dates, coverage limits (look for $2M general liability minimum), and a named insured matching the company you’re hiring. If the document looks edited or the insurer is unfamiliar, call the insurance broker listed at the top to verify it’s current.

2. Ask for WSIB clearance. A WSIB clearance letter confirms the cleaning company is current on their WSIB premiums. The letter is dated and valid for 30 days. Verify the WSIB account number on the WSIB website to be sure.

3. Ask for the bond certificate. The bond document names the surety (a recognized bonding company), the bond amount, the principal (the cleaning company), and the bond expiry date. As with insurance, you can call the surety to verify the bond is current.

4. Check that the cleaner is the named insured. Smaller cleaning operations sometimes share COIs across multiple businesses or use a parent company’s policy that doesn’t actually extend to them. The named insured on the COI must match the legal name of the company on your contract.

Frequently Asked Questions

What does “bonded and insured” mean?

“Insured” means the company carries general liability insurance covering property damage and injury during their work. “Bonded” means a third-party surety guarantees compensation if their employees steal or commit fraud or the company fails to deliver the contracted work. Most reputable commercial cleaning vendors in Ontario carry both, and most B2B contracts require both.

Is bonded the same as insured?

No. Insurance covers accidents the cleaning company causes. A bond covers intentional bad acts (theft, fraud) by their employees or contract failures by the company itself. They’re separate products from different providers and protect against different things.

How much insurance should a cleaning company have?

The GTA commercial standard is $2 million general liability per occurrence. Larger commercial buildings, REITs, and healthcare facilities typically require $5 million. Always ask for a current Certificate of Insurance before signing.

What is a janitorial services bond?

A janitorial services bond is a fidelity bond — a third-party surety guarantee that compensates the client if a cleaning company employee commits theft, fraud, or other dishonest acts during work. Typical claim limits are $10,000–$100,000, depending on the bond product.

Why do I need WSIB clearance from my cleaner?

If a cleaner is injured in your building and their employer isn’t registered with WSIB (Ontario’s Workplace Safety and Insurance Board), the liability can shift to you as the building owner or manager. WSIB clearance is proof the cleaner has active coverage. Ask for the clearance letter before signing.

What’s a Certificate of Insurance and how do I verify it?

A Certificate of Insurance (COI) is a one-page summary issued by the insurer listing the named insured, coverage limits, policy number, and expiry date. To verify, call the insurance broker named at the top of the certificate. Reputable cleaning vendors will gladly have their broker confirm directly with you.