Commercial bonds are typically purchased by companies and working professionals who need surety bonds for purposes unrelated to legal issues, construction projects or other contracted work. Most commercial bond types are used to reinforce laws – most commonly license and permit regulations. Government agencies at both the state and city level require professionals in certain industries to post a surety bond before they can obtain a business license. Surety bonds guarantee that companies and business professionals will work ethically and according to the laws that regulate the industry in their geographic location. A company or business professional's bond not only reassures these regulatory agencies but also consumers who feel more confident when choosing enterprises to work with.
Government agencies supply information on the specifics of several types of commercial bonds needed to properly run a business including:
Business Service Bond:
To protect clients from potential employee theft companies with employees who work in clients' homes and businesses can opt to purchase this type bond insurance.
Employee Theft Bond:
Employers whose workers have access to valuable company assets can opt to purchase a type of employee theft bond to protect their company from loss due to a specific employee theft or collaboration of theft among several employees.
Janitorial Service Bond:
Cleaning companies with employees who work in clients' homes and businesses opt for this type of bond insurance to protect their clients from potential employee theft.
License and Permit Bond:
Required of professionals who work in a wide array of industries.
Lost Title Bond:
Vehicle owners are required to purchase these bonds in the event that the original title to their vehicle has been lost and they are in need of a replacement.
Any businesses selling lottery tickets is required to purchase bonds that guarantee compliance with state lottery ticket sales regulations.
To guarantee utility bills are paid in full and on time, clients who consume large amounts of energy — such as restaurants, factories or RV parks — are required by utility companies to purchase these bonds