License & Permit Bonds
License and permit bonds are a specific type of commercial bonding. These bonds are required by government agencies to specify that business owners in certain industries must purchase these bonds before they can be legally licensed. License and permit bonds protect consumers by stipulating that businesses follow all laws and other regulations enforced by federal, state and local government agencies. These bonds cover a variety of industries including:
Alcohol Tax Bond
In many states surety bonds are required of businesses that sell alcohol – guaranteeing that the business will follow licensing laws and pay all taxes.
Appraisal Management Company Bond
Require that appraisal management companies are in line with all laws in place.
In order for auctioneers to obtain their license in many states, candidates must purchase a surety bond.
Auto Dealer Bond
All states – with the exception of Delaware, Ohio and Vermont – require auto dealers to purchase some type of surety bond.
Collection Agency Bond
Before a collection agency can legally operate in certain states, agency owners must purchase a surety.
Contractor License Bond
Most states require that construction professionals purchase surety bonds before they can be legally licensed.
Before being approved to bill Medicare - durable medical equipment, prosthetics, orthotics suppliers must purchase a surety bond.
Energy Broker Bond
In many states individuals who employ competitive rates to influence clients to move to other energy providers must have a surety bond before being licensed as energy brokers.
Fishing License Bond
Before being able to sell / issue fishing licenses, businesses must purchase a surety bond.
Health Club Bond
In the event that a health club unexpectedly closes – clubs purchase surety bonds to guarantee membership fee reimbursement
Hunting License Bond
Before being able to sell / issue hunting licenses, businesses must purchase a surety bond.
Insurance Broker Bond
In an effort to protect against predatory sales practices, insurance brokers are required by law to purchase a surety bond.
Medical Marijuana Bond
Government agencies require that medical marijuana dispensaries (in some states) file a surety bond with the particular agency that regulates them in their respective state.
In order for a health care provider to be able to bill Medicaid they must file bonds to ensure accurate records are kept and funds are handled appropriately.
MMA Promoter Bond
In order for a sports promoter to promote a specific MMA fighter or event – they must file a surety bond before being licensed.
Money Transmitter Bond
Before a money transmitter can be licensed they must purchase a surety bond.
Mortgage Broker Bond
Brokers, lenders, servicers and originators — must purchase a surety bond before they can be licensed to work in certain states.
Individuals wishing to become a notary public must purchase a surety bond.
Payday Loan Bond
To guarantee fair lending practices when issuing loans – payday loan companies must purchase surety bonds.
Patient Trust Bond
To guarantee patients' funds are handled appropriately – nursing homes and other types of assisted living facilities must purchase surety bonds.
Preeneed Funeral Bond
To guarantee client funds are handled appropriately – some states require that funeral homes purchase surety bonds
Private School Bond
In the event that a private school closes of is shut down, many private schools are required to purchase surety bonds as a preemptive measure to provide students and their families with financial recourse for tuition already paid.
Professional Employment Organization (PEO) Bond
In an effort to reduce fraud and other instances of malpractice – PEOs in some states are required to purchase surety bonds.
Sign License Bond
Before being licensed, outdoor advertising companies that install signs must purchase a surety bond.
Surplus Lines Broker Bond
Before being licensed, surplus lines brokers must purchase a surety bond.
In an effort to guarantee these companies do not harass consumers or break other industry laws, government agencies require telemarketing companies to purchase a surety bond
Title Agency Bond
To reinforce industry regulations, government agencies require title agencies to purchase surety bonds.
Travel Agency Bond
To guarantee client funds are handled appropriately – forwarding client payments to the appropriate resort, etc. travel agents must purchase surety bonds.
Used Car Dealer Bond
Several states require a specific surety bond type for used vehicle dealers in addition to regular auto dealer bonds.