Commercial surety is a broad term and there are actually many types of bonds that fall within the scope of a commercial surety bond. A broad description for a commercial surety bond is one that provides a guarantee of performance by the principal of the obligation and/or undertaking described in the bond.
Commercial Surety Bonds Include:
- License and Permit Bonds: required by state or local governments where the principal obtains a bond to guarantee that it will obey the terms set forth by state/local government to engage in that specific business. Examples include: contractor license bonds, employment bonds, liquor & sales tax bonds, broker bonds…
- Judicial and Probate Bonds: May also be known as “fiduciary bonds.” These bonds secure performance of a fiduciary’s responsibilities and/or compliance with court orders. Examples include: ERISA bonds, administrators bond, guardians bonds, trustees of will, appeal bonds, attachment, & replevin.
- Public Official Bonds: Provide guarantee of the performance of a public official’s duty. Examples include: treasurers, tax collector, sheriffs & court clerks.
- Miscellaneous Bonds: bonds such as lost securities, lease, guarantee payment of utility bills.
There are many variations of commercial bonds. Many times the entity requesting the bond has a bond form it provides to you. Presenting this form to a qualified surety agent will allow the agent to easily establish what bond you are in need of.