Commercial Bonds

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Commercial bonds are typically purchased by companies or working professionals in compliance with state licensing and permit regulations. These bonds are fairly low-risk and tend to have lower qualification requirements. 

What Is a Commercial Bond?

A commercial bond refers to any surety bond required for a commercial business. Car dealerships, cleaning services and general contractors are common examples of businesses that purchase commercial bonds. 

Note: Commercial bonds are unrelated to legal issues or contracted work. If you’re looking for information on bonds for construction projects, please see our guide to contract bonds.

How Much Do Commercial Bonds Cost?

Some commercial bonds are instantly issued, which means the premium is fixed at a set rate — typically 1-3% of the bond amount. The cost of most commercial bonds will ultimately depend on the following factors:

  • Bond type
  • Amount of risk
  • Term length

If underwriting is required, the bond price will vary based on factors such as credit score and personal or professional qualifications. Applicants with good credit are typically approved within the 1-3% rate range, while those with lower credit will pay a slightly higher premium. 

Find the type of bond you need below and apply for an exact price quote. 

Types of Commercial Bonds 

Alcohol Tax Bond

  • Some states require sellers of alcohol to file a surety bond that guarantees they'll pay all appropriate taxes as well as reinforces industry regulations.

Business Service/Janitorial Service Bond

  • Companies with employees who work in clients' homes and businesses can purchase service bonds to insure clients from employee theft.

Employee Theft Bond

  • Employee theft bonds protect companies from potential loss due to theft by a specific employee or collusion among many employees. 


  • ERISA bonds insure people who participate in employee benefit plans from dishonest acts by plan administrators. 

Food Stamp (SNAP) Bond

Food stamp bonds help reinstate retailers or wholesalers who have violated the SNAP program rules.

License and Permit Bond

  • License and permit bonds are required of professionals who work in a wide array of industries to obtain legal licensing.

Lost Instrument Bond

  • Lost instrument bonds guarantee that if an original lost instrument is recovered, the bonded party will be unable to cash it in addition to the duplicate check. 

Lost Title Bond

  • Vehicle owners need to buy title bonds if they lose or never receive the original title to their vehicle and need a replacement.

Lottery Bond

  • Businesses selling lottery tickets must purchase these bonds to guarantee they'll comply with state lottery ticket sales regulations.

Public Official Bond

  • Government agencies require public official bonds to guarantee the proper handling of public funds by appointed officials. 

Sales Tax Bond

  • Some states require certain businesses to file a surety bond guaranteeing they'll pay all taxes appropriately.

Tax Collector Bond

  • Tax collector bonds certify that officials will perform their tax-collecting duties legally and ethically. 

Taxable Fuel Bond

  • Federal tax regulations mandate surety bonds for taxable fuel registrants to guarantee all taxes will be paid in full and on time.

Utility Bonds

  • Utility companies require clients who consume large amounts of energy to purchase bonds guaranteeing they'll pay their utility bills.

Wage & Welfare Bonds

  • Wage bonds are required by unions to guarantee an employer will honor the payments of dues, fund contributions and benefit packages to union employees.

How Do I Know If My Business Needs Bonded? 

Government agencies at both the state and city levels require certain professionals to file a surety bond before they can obtain a business license. Commercial bonds guarantee companies and business professionals will work ethically and according to the laws regulating their industry. 

To find out what type of bond you need and in what amount, contact the government agency in charge of licensing and registration for your profession.

How to Get a Commercial Surety Bond

Find the commercial bond you need above. If your bond requires underwriting, apply now and our experts will provide a free quote in less than one business day. Otherwise, you can purchase online at a flat rate and get your official commercial bond in minutes.

What’s the Difference Between a Commercial Bond and a Contract Bond?

Contract bonds and commercial bonds both protect a specific party by guaranteeing the performance of an obligation, but they are not the same. 

  • Commercial bonds benefit the public by ensuring businesses and professionals operate according to laws and regulations. 
  • Contract bonds guarantee the fulfillment of a specific project according to mutual terms. 

The Advantage is licensed to issue commercial bonds in every state. As the nation’s top surety provider, we offer the best service, fastest delivery and most affordable prices in the industry.

Call 1 (800) 308-4358 to talk with a Surety Expert