Commercial Bond
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.
There are hundreds of types of license and permit bonds, such as:
- mortgage broker bonds
- auto dealer bonds
- contractor license bonds
- talent agency bonds
Why the Bond is Required
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.
For instance, many state governments require a telemarketing bond to ensure that phone solicitors operate legally per the terms of the particular state they are calling. An example of a non-licensed commercial surety bond is a sales tax bond, which most states require to guarantee a particular company pays sales tax to the government.
Obtaining the Bond
A commercial surety bond is much easier to obtain than a construction bond that backs a multi-million dollar commercial construction project contract. Attaining a commercial surety bond, like a license and permit bond, can be as simple as contacting a surety agency and paying the required fee for the bond.
Our online commercial bond application is very simple. You can have a quote back and then pay for your bond in as little as five minutes. However, a few requirements must be met before a commercial bond can be issued.
The surety bond application will request information such as:
- company information
- bond type and amount
