Surety Bonds for Business Owners

 

Surety bonds are a form of GUARANTEE to a third party and a PROMISE on your part.  A surety bond promises either you WILL do something (finish a job on time, abide by your license regulations) or the surety bond promises you WON"T do something (pay your taxes late, have your wide load cause harm on the road).  If the promise is broken by damage occuring from the exact reason the GUARANTEE (bond) was made, then the bond company may have to pay the damages or up to the value of the bond.  In most surety bond cases, the bonded business owner is required to pay the bond company back whatever amount they paid on your behalf.  Essentially, the bond ensures that monies will be available if the promise is broken.

 

 

A business owner may still be bonded if they just want to advertise they are bonded.  A generic business bond is a "dishonesty" bond that promises to customers that employees or owners will not steal from customers.  To be able to advertise that you are insured for liability and bonded for theft may help the public feel comfortable that you are an honest business owner they can trust.

Examples of other bonds:

Performance/Bid Bonds

State Comptroller/Tax Bonds

Estate/Probate Bonds

Certificate of Lost Title Bonds

Auto Dealers License Bond

Liquor License Bond

(*some bonds are subject to credit qualifications)