Types of Surety Bonds
There are many different types of surety bonds available. By many, we mean tens of thousands with new bonds being developed each year. They are typically a requirement in order to obtain your professional license depending on your state and industry. Additionally, surety bonds are also required on larger construction projects and often required by courts when appointing guardians of minors, filing an injunction, and other various court-related actions.
How do I know what type of surety bond I need?
So you’re applying for a state-regulated license, opening a new business, or working with a new general contractor and the response you receive is, “You need to be bonded.” You ask yourself, “Well, what does that mean and where do I find one???” That’s where we come in and provide you with the answers you need to get bonded. Listed below are several different classes of surety bonds:
- License and Permit Bonds – These surety bonds are most often required by state or local government departments in order to obtain your professional license. Common license and permit bond types are: Motor Vehicle Dealer Bonds, Seller of Travel Bonds, and Construction License Bonds.
- Commercial Bonds – This is a very generic surety bond description which includes license and permit bonds. They often include any bond which does not fall under the construction and court surety bond descriptions below. Common commercial bond types are: Lease Deposit Bonds, Business Service Bonds, and Commercial Contract Bonds.
- Court Bonds – These surety bonds are required by a court of law for various legal proceedings and appointments. Common court bond types are: Guardian Bonds, Appeal Bonds, Injunction Bonds, and Estate Bonds.
- Construction Bonds – These surety bonds are typically required by a local/state municipality or the federal government for public construction projects over $100,000. Additionally, many general contractors require these bonds from their subcontractors. These bonds guarantee the performance of a contract and payment of your company’s subcontractors and suppliers. The most common types of construction bonds are performance bonds, payment bonds, and supply bonds.
Bonds by State
Here’s a listing of the most popular states for surety bonds. The links below will take you directly to a listing bonds by that particular state.
Still don’t know what type of surety bond you need?
Chat with a surety bond representative by clicking on the “Need Help” button to the right, call one of our friendly customer service representatives at 386-316-2547, or email us at email@example.com and we’ll be happy to assist you!