Pennsylvania Surety Bond Types

Surety bonds protect all sorts of different businesses in varying industries across America. Most businesses these days are bonded, either because business owners are required to be or because they want an added layer of protection from possible fraud. The Pennsylvania state government, like governments in other states, requires certain businesses to secure surety bonds when a company wants a credit extension to construct a turnpike.

The original reason for toll roads was a direct result of bonded private road construction companies. In the 1940s and 50s, these companies expanded the country's interstates. The roads were not funded with federal money, but rather were paid for with bonds that were later paid off with money collected from motorists who paid tolls. After the bonds were paid off the private companies continued to collect tolls to pay for the upkeep of toll roads, among other things, since the government cannot help pay for the privately funded roads.

Pennsylvania Surety Bond Requirements

The Pennsylvania Turnpike is 359 miles long and runs from the Ohio state line to Bristol. This specific turnpike is well-known due to a missing connection that was never built between toll-free I-70 and the Pennsylvania Turnpike. This gives motorists traveling through the Breezeway area frequent headaches. The government cannot fund the connection unless toll collection stop once the bonds are paid for, and the private companies neither want to quit collecting tolls nor spend collected money on a new collection themselves.

The government requires these types of businesses to secure surety bonds to keep them from participating in fraudulent activities. If a business, or principal commits fraud or act unethically in a business deal and the consumer, or obligee, can prove it, then a claim can be made against the bond. The surety then compensates the obligee for damages, and the business could end up paying the full value of the bond.

Because many different types of businesses must be bonded to operate legally, it's a good idea to check out your local and state rules and regulations regarding bonding. However, if you find your specific business isn't required to get bonded, don't worry. You can still take advantage a surety bond's great benefits. A multitude of companies that issue surety bonds can be found online, and they have specialists who will work to find the best bond for your needs. Applying online only takes a few minutes, and you can get a quote back in just a couple of days.