Surety bonds are legally binding contracts that ensure obligations will be met between three parties:
Not every business requires the same type of bond, every business has its own needs and differences. There are three categories of surety bonds that may be required as part of doing business.
License and permit bonds: these types of bonds are required for various professionals so that they can operate legally. Auto dealers, licensed contractors, and freight brokers are some examples of professionals required to secure a license or permit bond.
Contractor bonds: individuals or businesses working on public construction projects are likely required to obtain a contractor bond.
Court bonds: these bonds are required by certain courts for a variety of purposes, such as probate or judicial bonds.
To avoid the challenges in knowing which type of bond you need, consider consulting with our specialists. We offer comprehensive consultancy services, that will help you establish with the best surety bond that will help you grow your business.
After determining the type of bond you are required to have, you need to then understand what the requirements are in your specific area. Throughout the country, states, counties, and cities may have different surety bond requirements based on your profession or business. If you purchase the incorrect bond because you do not take a close look at these specific requirements, the obligee will not accept the bond.
