Types of Commercial Surety Bonds and who can Benefit from Them
As a prospective business owner who wants to start operations locally, you have to fulfill a lot of obligations. Obtaining commercial surety bonds for your business is one of those obligations without which you may not get the license to do your business despite having the capital for it. This bond covers for any losses your partners/clients may suffer if your business does not take off or if there is an occurrence of a fraudulent activity. There are many types of commercial bonds that vary in cost and effect based on your business model, approach, and need to operate.
Federal non-contract bonds: These bonds cover Medicare and Medicaid providers, as well as those related to immigration and excise divisions
Public official bonds: These cover tax collectors, treasurers, judges, notaries and court clerks
Judicial bonds: These cover trustees of a will, guardians, liquidators, receivers and administrators
License & permit bonds: Required by state laws, these cover motor vehicle dealers, employment agencies, securities dealers, health spas and warehouse owners
Subdivision bonds: These cover financial protection for construction of streets, sidewalks, drainage systems and curbs
Miscellaneous bonds: These cover lost securities, utility payment defaults and leases