What is a Surety Bond?

To put it simply, surety bonds are a legally binding contract between three different parties. They make sure that one party (the principal) meets the demands of the other (the obligee). A third party, the surety, guarantees that the principal will fulfill the obligations of the bond. These obligations depend on what type of bond it is and what its purpose is.

There are thousands of different types of surety bonds. Generally, every surety bond falls into two main categories: contract and commercial.

Bonds We Offer Include:

  • Janitorial / Business Bond
  • Contractors License Bond
  • Defective Title / Certificate of Title Bond
  • Notary Bonds
  • Tax Preparer Bond
  • Escrow Agent Bond
  • Pest Control Bond
  • Farm Labor Contractor Bond
  • Floating Home Bond
  • Tobaco Bond
  • Utility Bond
  • Waste Hauler Bond

We offer these and over 50 other variety of commercial bonds, contact us today to find out more information.

Who Requires a Surety Bond?

The majority of surety bonds are requested by state agencies.  Commercial surety encompasses thousands of different types of surety bonds. These bonds range from Bond for Bingo Prizes and businesses like janitorial service to the more traditional California Motor Vehicle Dealer Bond. However, they all share the basic format: principal, obligee, and surety.

Every state has different requirements for bonds and which actors it requires to be bonded. Often, surety bonds are required to obtain licenses or permits. Sometimes they can be used in other legal cases. One example is registering a vehicle with a lost title.  They can also ensure that businesses will pay their taxes on time.

Who Requires Contract Bonds?

Mainly government agencies. If a government agency pays someone to complete a large project, they must trust that contractor. This is because they risk of losing a lot of money if that project fails or is not completed well. The federal government requires that all contractors working on these public projects post certain bonds. These bonds add security to the public project process. They ensure that the contractors act honestly and lawfully during the project.

License and Permit Bonds

There are many types of license and permit bonds. A wide variety of business types need to be bonded to become licensed. Mortgage broker bonds and vehicle dealer bonds are some of the most common license and permit surety bonds.

It is important to understand that these bonds do not protect businesses themselves. They protect the public. The bond is a way for the business to ensure that it will conduct itself lawfully. This is why there are so many types of license and permit bonds. The laws and regulations that businesses must follow vary based on what type of business it is. Because of that, every bond must pertain to the specific business that is getting licensed.

How Quickly Can I Get A Surety Bond?

If you or your business need a surety bond, it is very easy to get one. We can usually get the bond issued that same day. To get bonded, all we have to do is process and application and our capable and knowledgeable  agents are ready to walk you through the underwriting process.

The underwriting process may involve  a credit check and/or financial statements from previous years. Various bonds like DMV title, Janitorial, Notary and Tax preparer  do not require a credit check. However, If the bond you need requires a credit check and you are nervous about getting a credit check, don't worry  It is possible to get bonded with a low credit score, and our agency will help you do so.

While surety bonds may seem complicated, they are an essential part of safe business operations. If you or your business need a surety bond, contact us . We are well informed and want to help you and your business get the bond that is right for you today.

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