Information on Commercial Bonding
SuretyBonds.com is legally licensed to issue commercial bonds in every state
Surety bonds can be broken down into three major categories: contract bonds, court bonds and commercial bonds. To help both our clients and the general public better understand commercial bonding, the experts at SuretyBonds.com have developed this guide.
Commercial bonds are typically purchased by companies and working professionals who need surety bonds for purposes unrelated to legal issues, construction projects or other contracted work.
Commercial bond types are typically used to reinforce laws such as license and permit regulations. They are considered relatively low-risk to insurance companies for underwriting than contract and court bonds making them fairly easy for most individuals to qualify for.
Get Bonded Quickly, Easily And Accurately.
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 surety bond quote ready within 1 business day. In fact, some commercial bonds can be fully issued over the phone in just 5 minutes. Riskier bond types, however, might involve a slightly longer application process. Regardless of the type of bond you need, your bond will be issued once payment is processed. You'll receive the original bond form in the mail via your preferred shipping method.
Pay A Low Rate For Your Bond.
Some commercial bonds can be freely written without a credit check, which means your premium will be a flat, low rate. The cost of most commercial bonds, however, will depend on the following factors:
- the type of bond you need
- the risk associated with the bond
- the term of the bond
- your personal and professional financial history
Once we know this information, we'll provide you with a free, no obligation price quote for your bond. If your bond requires a credit check, you can expect the following:
- If your credit score is 700 or higher, you'll qualify for the standard market, which means your premium will be calculated at 1-5% of the bond amount. This means a standard $10,000 bond would cost between $100 and $500.
- If your credit score is below 700, you'll fall into our non-standard bond market, which means you'll pay a higher rate that directly corresponds to your credit score. Fortunately, SuretyBonds.com has a special Bad Credit Bonding Program that can approve 99% of applicants for the bonds they need regardless of their exact credit score.
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. Why? Because surety bonds guarantee that companies and business professionals will work ethically and according to the laws that regulate the industry in their geographic location. A company or business professional's bond not only reassures these regulatory agencies but also consumers who feel more confident when choosing enterprises to work with.
To find out what type of bond you need and in what amount, contact the government agency in charge of license and registration requirements for your profession.
Browse Common Commercial Bond Types.
- Alcohol Tax Bond
- Some states require businesses that sell alcohol to file a surety bond that guarantees they'll pay all taxes appropriately. Sometimes these bonds include stipulations that reinforce industry regulations.
- Business Service Bond
- Companies that have employees who work in clients' homes and businesses can purchase this optional type of bond insurance to protect clients from potential employee theft.
- Employee Theft Bond
- 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.
- Janitorial Service Bond
- Cleaning companies that have 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 Bond
- License and permit bonds are required of professionals who work in a wide array of industries.
- Lost Title Bond
- Vehicle owners need to buy these bonds when the they've lost the original title to their vehicle and need a replacement.
- Lottery Bond
- Businesses that sell lottery tickets must purchase these bonds to guarantee they'll comply with state lottery ticket sales regulations.
- Sales Tax Bond
- Some states require certain businesses to file a surety bond that guarantees they'll pay all taxes appropriately.
- Utility Bonds
- Utility companies require that clients who consume large amounts of energy - such as restaurants, factories or RV parks - purchase these bonds to guarantee they'll pay their utility bills in full and on time.