Bonds

Surety Bonds

When it comes to surety bonds, there are only three main categories, with everything else falling under a 'Miscellaneous' section. Each type of surety bond is underwritten differently and therefore, requires different information to be known or asked of applicants.

Commercial, Contract & Court Bonds

All three of the bonds listed above have other specific bond types that fall under their category as well. License and permit bonds are the most common type of commercial bonds; bid and performance bonds are the most common type of contract bond; and appeal or probate bonds are the most common type of court bond.

There are thousands of individual surety bonds. The general usage and regulations for each bond category differ, but there is typically a bond that can be useful for every situation.

Commercial Bonds

Commercial surety bonds, sometimes referred to as "non-contract bonds", come in a wide variety of specialties for a wide variety of company sizes. They are generally required by law, and are most frequently used for business owners who must be bonded to satisfy both local and state guidelines. Most business owners cannot even obtain a business license without first having at least one bond in their possession.

Contract Bonds

Contract surety bonds are comprised of several bond types that cover a construction project from start to finish. This help guarantee a contractor will perform accordingly and provides financial security for a project owner that a contractor will not only perform the work, but pay subcontractors, laborers and suppliers. These are useful regardless if you need a single bond to get your project started or multiple bonds to secure a new project.

Court Bonds

Court surety bonds, also known as judicial bonds, are often required in court proceedings to ensure that one is protected from possible loss as a result of the outcome of the proceeding. This guarantees that all parties are protected from financial loss and will receive whatever payment is due, as well as guarantee that finances are properly managed following the death of another individual. In these cases, an executor or probate bond are utilized to protect an estate’s assets.