Types of Surety Bonds

Dig into Construction Bonds

Construction bonds, also called contract bonds, act as another form of insurance for your clients. Essentially, these bonds protect project owners financially if contractors don’t perform according to project specifications.

Construction bonds help guarantee that a contractor:

• Places serious bids for projects
• Completes projects as agreed
• Uses quality workmanship
• Has the financial capacity to finish a project
• Pays subcontractors and suppliers as agreed

Contract bonds are required for government projects, public work projects, and some private-enterprise construction jobs.

Get Started with License and Permit Bonds

License and permit bonds protect consumers and governments by holding businesses in various industries accountable to local, state, and federal laws and regulations. Professionals may be required to obtain a license bond or permit bond before receiving their license or permit.

Acquiring the proper license and permit bonds for your business will reassure future customers that you agree to abide by the standards and regulations of your industry. Your bond should provide coverage for clients if you fail to adhere to laws, safety regulations, professional standards, or building codes.

Get Your Court and Probate Bonds in Order

For some legal matters, the courts require that someone post a bond guaranteeing performance. Essentially, someone makes a monetary investment to ensure that something happens as it should. Court and probate bonds are types of “fiduciary bonds,” ensuring that people fulfill their legal obligations. These bonds are most often used for criminal defense matters, litigation, probate matters, and appeals.

Don’t Overlook Miscellaneous Commercial Bonds

Miscellaneous commercial bonds don’t fit neatly into any general bond category. Instead, they represent a vast and diverse range of surety obligations that aren’t easy to classify. Often just called “commercial bonds,” they can support both private enterprise and public government needs. Examples include employee theft bonds, public official bonds, private investigator bonds, ERISA bonds, and lottery bonds.