Commercial bonds generally cover anything that is not construction for an individual or business.
Also known as business bonds, commercial bonds are agreements that protect businesses. They’re generally required by state laws for various industries, and guarantee some aspect of a principal’s occupation. Learn more below about which type of business bond is right for you.
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Types of Commercial Bonds
The principal difference between commercial surety and construction surety bonds is the intended application. Commercial surety bonds are designed to ensure a business complies with state regulation. Contract surety bonds function as a financial guarantee for construction projects. We place commercial surety bonds for domestic and international projects. In addition to license and permit bonds, Dale Barton can assist with the following commercial bonds:
- Court bonds (judicial bonds): If pursuing an action in court, court bonds or judicial bonds may be required of either a plaintiff or defendant (in judicial proceedings). These surety products may be used to reserve the rights of the opposing litigant or other interested parties and ensure costs related to the lawsuit or legal action can be paid. Examples include appeal bonds, attachment bonds, bail bonds, injuction bonds and replevin bonds (replevin deal with possession of assets and return of assets based on court decisions).
- Fidelity: ERISA and employee dishonesty.
- Fiduciary bonds: Required of those who administer a trust under court supervision. They protect heirs, beneficiaries and creditors in case a fiduciary performs dishonestly, negligently or incompetently, causing a loss of assets or other damages. Examples include executor bonds, trustee bonds, administrator bonds, conservatorship bonds, personal representative bonds and guardianship bonds.
- License and permit bonds: Required by federal, state or municipal government as a condition for granting a professional license to professionals in certain occupations or industries. License and permit bonds include contractor license bonds, electrician bonds, HVAC commercial bonds, non-resident license bonds and plumber bonds.
- Notary public bonds: Required by state statutes to protect against losses resulting from any improper actions of notaries.
- Public official bonds: Guarantee faithful performance of official duties. Public official bonds are generally for the protection of taxpayers.
- Title bonds: Also known as certificate of title bonds, defective title bonds and lost title bonds, these bonds are required to register a vehicle or other property due to a lost or defective title.
- Utility bonds: Financial guarantee bonds that ensure the payment of utility bills.
- Warehouse bonds: Guarantee that goods stored in a warehouse will be delivered on presentation of a receipt.
- Miscellaneous bonds: These are bonds that do not fit into any of the other categories mentioned above. They are commonly used to meet the needs or private relationships and unique business relationships. Examples include wage and welfare bonds, utility bonds, workers compensation for self-insured employees, union bonds, lost securities bonds and hazardous waste removal bonds.