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.
Types of commercial bonds
AG (agricultural) dealer bonds
Required for people licensed with the Department of Agriculture who buy and resell agriculture products. These bonds include grain dealer bonds, hay dealer bonds, livestock dealer bonds, milk dealer bonds and produce dealer bonds.
These travel agent bonds are required by the Airlines Reporting Corporation. They guarantee that payments collected by a travel agency are forwarded to the right airline.
Required for auctioneers and auction houses to protect bids and purchases.
Auto dealer bonds
Motor vehicle dealer (MVD) bonds assure the general public that the dealer will comply with the law. Other dealer bonds include boat dealer bonds, mobile home dealer bonds, snowmobile dealer bonds and vessel dealer bonds.
Fuel tax bonds
Required by fuel sellers to guarantee payment of taxes.
License and permit bonds
Required by federal, state or municipal governments 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.
Guarantee compliance with federal and state laws pertaining to the sale, manufacturing and warehousing of alcohol.
Required for any establishment with a lottery machine. This bond guarantees proper use of the machine to ensure there is no abuse to the state lottery system.
Notary public bonds
Required by state statutes to protect against losses resulting from any improper actions of notaries.
Motorcycle dealer bonds
Guarantee that motorcycle dealers comply with laws and required tax payments. In some cases, this bond also guarantees payment of judgments.
Mortgage broker bonds
Guarantee that mortgage brokers will abide by state laws and regulations under the mortgage broker license code.
Public official bonds
Guaranteeing faithful performance of official duties, public official bonds are generally for the protection of taxpayers.
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.
Financial guarantee bonds that ensure the payment of utility bills.
Guarantee that goods stored in a warehouse will be delivered on presentation of a receipt.