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Information on Commercial Bonding
Commercial bonds are typically purchased by companies or working professionals in compliance with state licensing and permit regulations. These bonds are fairly easy to qualify for because insurance companies generally see them as low-risk. It’s important to note commercial bonds are unrelated to legal issues, construction projects or other contracted work. If you are looking for information on bonds for contracted projects, please see our guide to contract bonds.
How much does a commercial bond cost?
Some commercial bonds can be freely written without a credit check, which means the premium is fixed at a rate that is typically 1-3% of the bond amount. The cost of most commercial bonds will ultimately depend on the following factors:
- Type of bond
- Length of bond’s term
For bonds requiring an underwriter’s review, the premium varies and is based on factors such as a credit review or personal and professional qualifications. Highly qualified applicants are typically approved at a rate of 1-3% of the bond amount, while those who are less qualified are approved at a slightly higher rate.
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SuretyBonds.com is legally licensed to issue commercial bonds in every state!
At SuretyBonds.com, we believe in providing clients with a fast, easy and error-free bonding process. You can contact us online or by phone at 1 (800) 308-4358 to get the application process started. In most situations, we can have your free, no obligation commercial bond quote ready within one business day. In fact, some commercial bonds can be approved and issued in just a few minutes.
Browse Common Commercial Bond Types
Some states require businesses selling alcohol to file a surety bond that guarantees they'll pay all taxes appropriately. Sometimes these bonds include stipulations reinforcing industry regulations.
Companies with employees who work in clients' homes and businesses can purchase this optional type of bond insurance to protect clients from potential employee theft.
Any employee who has access to valuable company assets could be a potential theft risk to your company. Depending on the type of employee theft bond you choose to purchase, your company could be protected from loss due to any specific employee theft or collusion among many employees.
Cleaning companies with employees who work in clients' homes and businesses can purchase this optional type of bond insurance to protect clients from potential employee theft.
License and permit bonds are required of professionals who work in a wide array of industries.
Vehicle owners need to buy these bonds when they've lost the original title to their vehicle and need a replacement.
Businesses selling lottery tickets must purchase these bonds to guarantee they'll comply with state lottery ticket sales regulations.
Some states require certain businesses to file a surety bond guaranteeing they'll pay all taxes appropriately.
Federal Tax Regulations allow taxable fuel registrants to get a surety bond guaranteeing all taxes will be paid in full and on time.
Utility companies require clients who consume large amounts of energy - such as restaurants, factories or RV parks - to purchase these bonds guaranteeing they'll pay their utility bills in full and on time.
Wage and welfare bonds are required by unions when negotiating collective agreements with other companies to guarantee an employer will honor the payments of union dues, contributions to funds and promised benefit packages to employees of the union.
Learn More About Commercial Bonds
Across the country, government agencies at both the state and city level require professionals in certain industries to post a surety bond before they can obtain a business license. Commercial bonds guarantee companies and business professionals will work ethically and according to the state laws regulating their industry. These bonds can also have a positive impact on customer perception of your business when selecting enterprises to work with. To find out exactly what type of bond you need and in what amount, contact the government agency in charge of license and registration requirements for your profession.