Commercial Surety Bonds
Contract Surety and Commercial Surety are the two main categories of surety bond issuance; however, they are separate and distinct product areas. Contract (surety) bonds, often known as construction bonds, are exclusively secured for contractors involved in construction projects.
What is a Commercial Surety Bond?
Commercial Surety Bonds are required by the government, legislation or sometimes other entities to protect either the public interest or a business’s interest in commercial transactions.
There are many types of commercial surety bonds including:
- Court Bonds – A court bond is generally utilized for actions dealing with the court of law. One may be necessary to reduce the risk of financial loss or to ensure the proper execution of a court appointed task.
- Fiduciary Bonds – Interchangeable with the term “probate” bonds, fiduciary bonds guarantee individuals will fulfill court-appointed tasks, such as caring for a minor, or for the property or finances of an elderly person.
- License and Permit Bonds – These types of bonds guarantee that a business will operate in accordance with federal, state, or local laws and regulations.
- Public Official Bonds – This type of bond guarantees that the specified official will faithfully perform his or her official duties, including dealing with sensitive information and/or accounting for all funds entrusted to his or her care.
- Union Bonds – Sometimes referred to as “wage and welfare bonds,” union bonds may be required when a company hires an employee represented by a union. The bond will ensure payment of union dues, wages and benefits by companies that contract for services.
- Miscellaneous Bonds – Bonds that do not fit into any of the other categories above.
Please contact us if you require more information regarding these distinct product offerings.