Commercial surety bonds come in a wide variety of specialties. These bonds are most frequently required for business owners who must be bonded in order to legally operate under their state’s guidelines. Most business owners will require at least one bond in their possession to obtain a business license. A commercial surety bond is sometimes referred to as a "non-contract bond" because it does not guarantee a specific contract like a construction bond would. However, commercial bonds are more commonly referred to as "license and permit bonds." Specific business owners must obtain a license and permit bond to satisfy both local and state regulations and legally operate their businesses.
Local and state governments require business owners to obtain commercial surety bonds before they can legally conduct business in a specific municipality or state. Commercial bonds typically refer to license and permit bonds, whereas professional licensure allows an opportunity for fraud or misconduct.
Obtaining the Bond
A commercial surety bond is much easier to obtain than a construction bond. Attaining a commercial surety bond, like a license and permit bond, can be as simple as contacting our surety agency and paying the required fee for the bond.
License & Permit Bonds
License & Permit Bonds are required by the federal government or by any state, county, municipality or other political subdivision as a condition precedent to the granting of a license to engage in business or a permit to exercise a particular privilege, where such business/privilege presents a risk to the public welfare.
Examples of License & Permit Bonds - Contractors License, Street Permit, Real Estate & Insurance Brokers and Compliance Obligation.
Miscellaneous Surety Bonds are those obligations that do not clearly fall within the scope of the other bond classes. Some of these bonds are required by law and must be conditioned as provided by statute, ordinance, or regulation.
Examples of Misc. Bonds - Lost Securities, Patient Fraud (Nursing Homes), Concessionaries, Games of Chance and All Other Financial Guarantees.
Business Service Bonds
The Business Service Surety Bond addresses acts of theft by the principal or principal's employees while performing services for others. Businesses such as janitorial services and home health workers are just two of the types of operations that can benefit from being "bonded".
The Public Official may be elected or appointed to a full-time or part-time position. The bond covers the official's term of office and guarantees that the bonded official will faithfully perform all official duties. Said bonds are the direct result of state statute or other type of public charter and specifically determine the exposure for a given bond.
Examples of Public Official Bonds - Notary, Treasures, Tax Collectors, Sheriffs and Other Public Officials. More details
Non-Construction Performance Bonds
These bonds secure the obligation to faithfully perform the terms and conditions of a contract. The companies who need performance bonds range from manufactures, wholesalers and distributers who may supply a product or commodity, to service companies, such as janitoral contractors, food service operations, bus companies and trash haulers, to name a few.
Examples of Tax Bonds - Fuel, Cigarette, Alcohol and Other Sales Tax.
Probate Bonds Probate is the legal process in which a court oversees the distribution of property left in a will. A bond may be required. Its purpose is to require the person responsible for all fiduciary duties, especially as they apply to the sale of real estate, to discharge them according to law.
A Judicial Bond is generally required in civil court proceedings when a litigant
seeks a special right or remedy in advance of a final court decision.
Examples of Judicial Bonds - Attachment, Injuction, Replevin & Appeal.
Lost instrument bonds, also known as securities bonds, guarantee that if securities or valuable papers handled by the principal are lost, destroyed, or stolen, the owner of the securities will be indemnified. These bonds usually contain a provision calling for reimbursement if lost securities turn up after payment has been made under the bond.
Release of Mechanic's Lien Bond: A mechanic's lien can be removed from real property by recording a release of mechanic's lien bond. In some states, the party filing the bond must serve a copy of the bond on the lien claimant. The bond then stands in place of the property as security for the lien claimant's claim. (This bond is typically collateralized.)
Common Commercial Bond(s)
A bond required by the Airlines Report Commission.
Auto Dealer Bond
A license and permit bond required by many states in order to operate as an auto dealer.
A vague term used to describe various types of brokers (e.g. freight broker, mortgage broker, etc.)
Cigarette Tax Bond
May be required of cigarette distributors to guarantee payment of taxes.
Collection Agency Bond
A bond to guarantee collection agencies operate within the rules and regulations set fourth by the governing body.
Contractor License Bond
Some states, as well as local governments may require a bond for a contractor to legally operate in a particular location.
Required of importers by U.S. customs of imports over $2,000 in value.
A bond required of Medicare suppliers by the Federal government.
A Federally mandated bond of freight brokers to guarantee delivery of brokered goods.
Fuel Tax Bond
A bond to guarantee payment of taxes on fuel sold in a particular region.
Health Club Bond
Required by some states for health clubs to collect payment up front from their clients.
Home Dealer Bond
A license bond to guarantee the performance of dealers for off-site built homes.
Insurance Broker Bond
Some state insurance departments require a license bond to guarantee the performance of insurance brokers within their state.
The ICC is the old regulating body for freight brokers. The bond is simply referred to as a freight broker bond or BMC-84 now.
Liquor Tax Bond
A bond to guarantee payment of taxes collected from the sale of alcoholic beverages.
Lottery and Lotto Bond
Some states require a bond to guarantee store owners properly operate state owned lottery machines.
Money Transmitter Bond
Many state governments require money transmitters to obtain a bond to guarantee they will operate in accordance with the terms their license.
Mortgage Broker Bond
Most states require mortgage broker to file a bond to with their license applications to ensure they operate per the states rules and regulations.
Mortgage Lender Bond
Most states require mortgage lenders (also known as mortgage bankers) to post a license bond to guarantee they operate per the terms of the state in which they operate.
We write $10,000 NYC Street Obstruction (1 location) Bonds in New York.
We write $50,000 NYC Street Obstruction (2 to 50 locations) Bonds in New York.
Patient Trust Bond
This bond ensures the caretaker of a patient will not misuse the funds held in the patients' trust.
Public Adjuster Bond
Also referred to as insurance adjuster bonds, they guarantee the work of public adjusters.
Public Official Bond
Public Official bonds are usually for the protection of the taxpayers money which they often handle.
Sales Tax Bond
A commercial bond that guarantees a company's payment of sales tax to the government.
Seller of Travel Bond
A bond required of sellers of travel to ensure collected funds are sent to the appropriate parties.
A subdivision bond guarantees that builders, developers, and individual landowners complete improvements made to a subdivision property. This bond, required by local authorities, usually guarantees that the improvements will be made at the expense of the developer and principal of the bond.
Mandatory public improvements that builders, developers, and individual landowners make to their property. The local authorities require a guarantee that the landowner completes the improvements; the developer's bond guarantees it. A subdivision bond obligates the principal and the surety to complete subdivision improvements.
Surplus Lines Broker Bond
Required by several states for any insurance agent that offers surplus lines.
A license bond required by state governments to ensure telemarketers (also known as phone solicitors) operate legally per the terms of the particular state being called.
Title Agency Bond
A license bond required of title agents by some states.
Used Car Dealer Bond
Most of the state departments regulating used car dealers require them to be licensed and bonded to protect the public.
A financial guarantee bond to ensure payment of utility bills in a prompt manner.
Wage and Welfare Bond
Are bonds required by local unions to guarantee payment of dues.
There are hundreds of types of license and permit bonds, such as:
Each State has its own bond form(s), and a different bond form for each bond type and these forms may change, or be updated, without notice.
The Surety & Fidelity Association of America (SFAA) has created a database containing many bond forms.
You can view the database here, and is free of charge.
If you are unable to find your bond form, please try one of the alternatives below.
Search Google using the following searches: "(your state) surety bond form" or "(your state) bond form".
If this does not work for you another option is to go web site of the state that is requiring the bond of you. Most states have a search feature on their site; perform the same search as above on this site.
If you are unable to find the forms in the ways described above, contact the state, or its department, that is requiring the bond of you.