Commercial Bonds

Commercial Bonds - A general classification of bonds that refers to all bonds other than contract and performance bonds. Commercial bonds cover obligations typically required by law or regulation. Each bond is unique to the circumstances at hand.

Legal regulations for Federal, state, and municipalities can require various commercial bond obligations. These may guarantee compliance on the part of individuals to follow certain rules or legal requirements. The following outlines the types of Commercial Bonds:

• License and Permit Bonds - Stare or local laws require License and Permit Bonds be issued to operate certain types of businesses such as streets, sidewalks, gutters, and drainage systems. They may be required for a number of reasons, including the payment of certain taxes and fees or providing consumer protection as a condition to granting licenses related to selling things such as motor vehicles or contracting services.
• Miscellaneous Bonds - Miscellaneous Bonds cover performance of contracts and agreements with private parties and government agencies. e.g. lost securities, utility deposit, wages and welfare.
• Public Official Bonds - Public Official Bonds protect against dishonesty and lack of faithful performance by a public official. These bonds are required by statutes and ordinances.