Commercial Bond Guide

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. 

SuretyBonds.com 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.

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. 

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.

Bail Agent Bond

• These bonds hold bail agents and agencies liable for acting ethically, legally and responsibly. (These are not bail bonds to release a defendant from jail.)

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.

CDL Third-Party Tester Bond

• CDL third-party tester bonds hold testing providers accountable for upholding state and federal regulations.

Cigarette and Tobacco Tax Bond

• Any business that collects sales or excise taxes on cigarettes and other tobacco products may need a surety bond.

Consumer Loan Company Bond

• Loan brokers, licensed lenders, supervised lenders and other consumer loan providers need to be bonded in most states to provide a means for compensation if a client if harmed.

Cosmetology School Bond

• Cosmetology, barber, and esthetician schools in several states must be bonded to receive a business license.

Driving School Bond

• Driving school bonds ensure driving schools follow regulations and protect students from fraud.

Employee Theft Bond

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

Employment Agency Bond

• Private employment agencies need a surety bond in several states and cities to compliance with local employment laws and protect clients.

ERISA Bond

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

Exempt Company Registration

• Companies that are exempt from registration but employ or sponsor MLOs typically need a bond to make sure the sponsored MLOs still follow regulations.

Inspection Station Bond

• Inspection station bonds protect customers of motor vehicle inspection stations from fraud or license violations.

License and Permit Bond

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

Litigation Funding Provider Bond

• Litigation financiers may need a surety bond to ensure they meet all terms of defendant funding agreements in a specific state.

Livestock Market Agencies, Dealers, and Packers Bond

• The USDA requires meat packers and stockyards to get this bond to promote fair trade practices and protect livestock farmers, distributors and dealers from damages.

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.

Manufactured Housing Bond

• Mobile home and manufactured housing retailers, dealers, installers and manufacturers often need to file a bond as part of their state's license application.

Medicaid Provider Bond

• Most healthcare providers that bill Medicaid often need to file a bond as part of their state's license application to prevent billing fraud.

Mining Lease Bond

• Mining lease bonds are required for anyone planning to develop mineral resources on public land. This bond ensures that the lessee will follow all lease terms and restore the land to proper condition.

Motor Club Bond

• Motor clubs create a financial guarantee that automobile clubs will uphold license laws and contract terms.

Public Official Bond

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

Real Estate School Bond

• Several states require real estate schools to guarantee compliance with local licensing laws and protect tuition payers.

Reclamation Bond

• If a bonded mining operator does not restore the environment according to contract, the DOI or local government can file a claim to recover damages.

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.

United States Customs Bond

• U.S. customs bonds ensure importers pay all taxes, fees and duties in-full and on-time. Importers can get a continuous or single-entry customs bond.

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 vs 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. They are unrelated to legal issues or contracted work.
• Contract bonds guarantee the fulfillment of a specific project according to mutual terms. This type of bond is most common in construction projects.