Different Types of Commercial Bonds
There are many types of surety bonds. This infographic is designed to showcase different commercial bonds available on the market.
A commercial bond does not fit under the description of a construction contract bond. Some examples of the different types of commercial bonds are:
License and Permit Bonds: Required by certain federal, state, or municipal governments as prerequisites to receiving a license or permit to engage in certain business activities, such as running an alcoholic beverage business.
Agricultural & Citrus Surety Bonds: The Department of Agriculture asks people who are involved in selling and buying agricultural products to get an Agricultural & Citrus Surety Bond. This bond ensures they get a permit to be involved in the agricultural business.
Auto Dealer Surety Bonds: Auto dealers need to comply with the regulations of their industry. These rules and regulations differ from state to state. This type bond ensures those who do business as an auto dealer will comply with these rules.
The cost of surety bonds varies depending on the type of bond. Some of the factors which contribute to determining a bond’s rate are the amount of the bond and the financial worthiness of the applicant.
See the infographic for more information about these bonds.