If you need a commercial surety bond, here’s a quick introduction:
What Is a Commercial Surety Bond?
This type of bond is a way to guarantee one party (the principal) in a commercial arrangement meets their obligations to another (the obligee). Those obligations could include following law and regulations, meeting fiduciary responsibilities, or abiding by contractual obligations. When necessary, the obligee is allowed to file a claim against the bond seeking compensation. The company that issues the bond (the surety) agrees to pay if the principal doesn’t, but the principal (you) must reimburse the surety in full.
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Different Types of Commercial Surety Bonds
You may need to obtain a commercial surety bond before you’re granted a license or contract. These are some common examples:
- Court Bonds: Courts may require you to get a bond before filing an appeal, being named the executor to a will, pursuing litigation, or taking another court-sanctioned action.
- License and Permit Bonds: Professionals required to get a professional license (contractors, mortgage brokers, motor vehicle dealers, health clubs, and many more) often need a bond as well.
- Customs Bonds: If your business imports goods, this bond will serve as an agreement between customs and an importer to guarantee payment of import duties and taxes for any given import transaction.
- Wage and Welfare Bond: Businesses that agree to pay wages or provide financial welfare may need bonds to guarantee payment.
- Notary Bonds: Notaries are bound by professional and legal standards, and bonds help hold them to those standards.
How to Obtain a Commercial Surety Bond
The best time to get a commercial surety bond is as soon as you know you need one. First, you will need to reach out to a trusted brokerage agency like Viking Bond Service that can help broker the bond you need in the state you need it. Then you will fill out an application that includes information about your credit and business history. Next, you will receive a bond quote based on that information in 48 hours or less. Finally, you pay the premium to activate the bond. Now you’ve met your bond requirement.
To learn more or to apply for a commercial surety bond today, visit PerformanceSuretyBonds.com