Three Types of Commercial Surety Bonds
Commercial surety bonds are usually required by the government, legislation, or other entities from individuals or businesses. Below are some of the types of commercial surety bonds:
Court Bonds: Court bonds is a general term used to describe different kinds of bonds that may be required in court proceedings, such as estate bonds, executor bonds, and probate bonds. These bonds provide protection to the participants in legal matters against deceitful activities.
License and Permit Bonds: License and Permit Bonds are generally required by municipal, state or federal ordinance as a condition for engaging in a particular activity. These bonds guarantee that the party seeking the license and permit bond will comply with the applicable laws and regulations. Some of the most common types of license and permit bonds are customs bonds, tax bonds, and performance and payment bonds.
Fidelity Bonds: Fidelity bonds are a kind of business insurance that protects an employer against the losses (monetary or physical) caused by an employee’s fraudulent activities. The most common businesses that are required to obtain fidelity bonds include security firms, brokerages, and cash carriers.