What are the different surety bond types?
If this is the first time you’ve been required to obtain a surety bond you may not know just how many surety bond types are available. The large number of available surety bonds often can cause confusion for those unfamiliar with the commercial, contract, court, environmental, license, and permit surety bonds. However, most surety bond types will fall into the following categories:
License Surety Bonds
License surety bonds are commonly referred to as License and Permit bonds. These bond types are named appropriately as they’re typically required when applying for a license or permit in a particular state or other municipality. These bonds seek to protect the consumer from harm should you or your business violate the terms, conditions, or other regulations which govern your license or permit. Common license and permit bonds include car dealer bonds, seller of travel bonds, construction license bonds, and business service bonds.
Performance Surety Bonds
Performance bonds are often required for large, public construction projects which are funded by taxpayer money or large contracts which require financing from a banking institution. These bonds are meant to protect the public or lender from loss when a contractor fails to complete the project according to the contract. They ultimately provide a guaranty that the project will be completed per the contract and, if not, performance surety bonds provide the funding to complete the project in case the contractor defaults. While these bonds are often referred to as Contract Bonds, the most common types are performance bonds, payment bonds, maintenance bonds, and subdivision bonds.
Court Surety Bonds
Court surety bonds are required by local, state, and federal courts for certain proceedings. These bonds are meant to protect a party to a legal proceeding in certain instances like appeals, injunctions, and writs of distress. Additionally, court bonds may also be required for executors of an estate, guardians of minors and incompetents, and other probate matters. The most common types are probate bonds, injunction bonds, and guardianship bonds.
Other Surety Bonds
The other surety bonds category includes all other bonded obligations which don’t fit in the license, performance, or court surety bond buckets. These obligations range from financial guarantees like utility deposit bonds, environmental surety obligations such as a landfill or closure/post closure bonds, and the popular business service bond. There are many different surety bond types that fall into this category and it’s typically best to give one our representatives who can assist in determining which bond type you need.
Don’t see your surety bond type listed?
It’s very common to be confused about the surety bond type and amount you need especially if this is your first time being bonded. There are thousands of surety bond types and even more forms. DBL Surety and our surety insurance company partners have many of these bonds on file for your convenience. We urge you to contact us by email at email@example.com or phone at 3863162547 if you have any questions and we’ll be happy to help.
How do I apply for my surety bond type?
Our online surety bond application makes applying for your surety bond fast and efficient. All you need to do is click on the Apply Online button at the top of this page, answer a few questions about your business, and click submit. Your application will be sent to one of our surety bond representatives who will quickly provide you with a quote or contact you for additional information.
How much will my surety bond cost?
Your surety bond cost will primarily be determined by your personal credit score. If you do not want to provide the information needed to generate a credit report, the average surety bond cost for someone with good to excellent credit is 1-3% of the bond amount and 4-15% for those individuals with bad credit or payment history. However, the best way to determine your exact premium is to complete our online surety bond application. Learn more about your surety bond cost.