Many types of individuals and businesses require licenses to operate per state or federal requirements. As such, the state or federal entity will also require a License Bond to go along with the license (or as a requirement of holding the license). Licensees are required to maintain their license and their Bond from year to year by the state. If the licensee fails to uphold the terms of his license, he or she may lose such license and face a possible claim or claims on their License Bond.
A License Bond is also generically called a surety bond. The term "Surety Bond" is used to describe many different types of Bonds including License Bonds. License Bonds are three party agreements. The parties are:
Via this agreement, the Surety agrees to uphold, for the benefit of the obligee, the contractual obligations of the licensed Principal, if that Principal fails to demonstrate its obligations under their license to the obligee. A License Bond is provided to induce the state (obligee) to license the Principal. For example it demonstrates the credibility of the license applicant.
The license applicant will pay a pre-determined premium, which is paid annually in exchange for the Surety's financial assurance extension of its Surety credit. If a claim is filed on the License Bond, the Surety will generally investigate it in detail prior to payment of any such claim. If it is determined to be a legitimate claim, the Surety will pay the claim as required. The Surety will then require the principal to reimburse them in the amount paid as well as legal fees incurred in the process.
Viking Bond Service is a national Surety Agency. We have been handling all types and amounts License Bonds since our inception. Viking's team of professionals has over one hundred years of combined experience in the license and surety bond industry. We provide License Bonding through all major Surety companies in the U.S. and use A-Rated, and Treasury Listed Surety paper. Viking offers approvals for nearly all of the License Bond requests presented. We are able to quote most clients who would not qualify for standard License Bond markets due to credit or financial issue. Viking's aim is providing our clients with friendly, honest, and efficient service.
Whether you are a first time License Bond applicant or a license holder who is looking to expand into additional states, Viking Bond Service can assist you with your License Bond needs. We have serviced License Bonds in all states and are familiar with the forms, amounts and requirements. Check with a Viking representative for more information on License Bonding.
Need a Bond? Here's how to get one. Read here for information about the bonding process.
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