Also known as business bonds and commercial surety 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

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Commercial contract bonds help protect customers by ensuring businesses meet the terms of their contracts and complete work as agreed. These bond types include but are not limited to:

  • Supply Contracts
  • Security Services
  • Janitorial Services
  • Busing
  • Food Service

Court Bonds are financial guarantees required in legal proceedings to ensure individuals or entities comply with court directives. These bonds may cover obligations such as appearing in court, paying judgments, or responsibly managing an estate. They help protect involved parties from potential financial loss due to noncompliance or misconduct.

These bond types include but are not limited to:

  • Plaintiff
  • Defendant (collateralized)
  • Court Cost

Customs Bonds are financial guarantees required by U.S. Customs and Border Protection (CBP) that ensure importers comply with all customs regulations. These bonds guarantee the payment of duties, taxes, and fees associated with importing goods into the United States, helping to protect the government from financial loss due to non-compliance.

Federal Bonds, often referred to as Treasury Bonds, are long-term debt securities issued by the U.S. federal government to raise capital for public spending. These bonds pay periodic interest to investors and return the principal at maturity, offering a low-risk investment backed by the full faith and credit of the government.

These bond types include:

  • Brewers and Distillers
  • Postal Contract Station
  • Freight Brokers
  • DMEPOS (pharmacies and skilled care facilities)

Fiduciary Bonds, also known as probate bonds, are court-required surety bonds that ensure individuals entrusted with managing another person’s assets act in good faith and in accordance with the law. These bonds protect beneficiaries and other interested parties from potential mismanagement or misconduct.

These bond types include:

  • Administrator and Executor
  • Guardian and Conservator
  • Guardian of Minor
  • Trustee
  • Receiver

Ensures businesses are compliant with laws and regulations, protecting the public and the government. 

These bond types include but are not limited to:

  • Contractors License – local and state
  • Motor Vehicle Dealer
  • Certificate of Title
  • Mortgage Broker and Lender
  • Agricultural Dealers and Warehousing

Miscellaneous Bonds are a broad category of surety bonds that don’t fall under standard classifications like construction, court, or license and permit bonds. These bonds are tailored to support unique business arrangements or private obligations, often required to enforce laws, fulfill contractual terms, or provide financial assurance in specialized scenarios. They are commonly used by businesses and professionals to meet specific regulatory or contractual requirements.

These bond types include:

  • Utility Deposit
  • Nursing Home Patient Trust
  • Workers’ Compensation
  • Lost Instrument

Notary Bonds are surety bonds that protect the public from financial harm caused by a notary’s negligence, misconduct, or failure to perform their duties according to law.

Notary Errors & Omissions (E&O) Insurance complements the bond by providing coverage for the notary personally, safeguarding them against claims arising from unintentional mistakes made during notarizations.

Public official bonds are a type of surety bond that ensures public officials perform their duties ethically, lawfully, and in accordance with all applicable regulations. These bonds provide financial protection to the public by guaranteeing compensation in cases where an official engages in misconduct, negligence, or fails to fulfill their legal responsibilities.

These bond types include but are not limited to:

  • Treasurer and Tax Collector
  • Sheriff
  • Judge
  • Clerk

Site improvement and subdivision bonds help ensure required infrastructure—such as roads, utilities, and sidewalks—is completed according to local regulations, protecting communities and municipalities.

Nationwide’s primary scope of coverage

Nationwide offers commercial bond solutions support for businesses of every size across many different industries. With a reliable policy in hand and a team of experienced surety professionals at your back, you can plan a secure future for your business.

  • Consulting firms
  • Financial institutions
  • Manufacturers
  • Pharmaceutical companies
  • Service contractors
  • Transportation firms

Surety claim notifications

Claim notices should be sent to the attention of the Surety Claims Manager either by email to bondclaims@nationwide.com, or to the mailing address.

Freight Broker Bond BMC-84 Cancellations and Claim Information

All other notices should be sent to the attention of the Surety Underwriting Department either by email to bondcomm@nationwide.com, or to the mailing address.

Mailing address:
Nationwide Mutual Insurance Company
1100 Locust St., Dept. 2006
Des Moines, IA 50391-2006

Phone: 1-866-387-0457

Online resources

Product, coverage, discounts, insurance terms, definitions, and other descriptions are intended for informational purposes only and do not in any way replace or modify the definitions and information contained in your individual insurance contracts, policies, and/or declaration pages from Nationwide-affiliated underwriting companies, which are controlling. Such products, coverages, terms, and discounts may vary by state and exclusions may apply.

The information included here is designed for informational purposes only. It is not legal, tax, financial or any other sort of advice, nor is it a substitute for such advice. The information may not apply to your specific situation. We have tried to make sure the information is accurate, but it could be outdated or even inaccurate in parts. It is the reader’s responsibility to comply with any applicable local, state or federal regulations. Nationwide Mutual Insurance Company, its affiliates and their employees make no warranties about the information nor guarantee of results, and they assume no liability in connection with the information provided.