Commercial bonds cover a huge range of obligations. If a utility company, government agency, landlord, customer, regulator, or other organization told you to get a commercial bond, send us what they gave you.
We’ll identify the bond, check the amount and form, and tell you what the surety needs for a quote.
A commercial surety bond guarantees a business, individual, or public official will meet a specific obligation required by law, regulation, contract, or another agreement.
Start with the bond name on your paperwork. If you don’t know it, upload the requirement instead of trying to match it yourself.
Used when a utility accepts a surety bond instead of some or all of the cash deposit it would otherwise require.
Required in some jurisdictions for businesses authorized to sell lottery tickets or handle lottery funds.
Bonds tied to certain warehouse operators and obligations involving stored goods or commodities.
Guarantee the faithful performance of duties imposed on certain public officials or employees.
Can guarantee certain obligations under a lease when the landlord or agreement accepts a surety bond.
Used in certain situations when a financial instrument, certificate, check, or security has been lost and replacement is requested.
May guarantee an employer’s required contributions to union benefit or fringe-benefit funds.
May be required as security when an employer is authorized to self-insure workers’ compensation obligations.
Commercial surety includes many specialized obligations. Send us the form if yours is not listed.
Used when a utility accepts a surety bond instead of some or all of the cash deposit it would otherwise require.
Required in some jurisdictions for businesses authorized to sell lottery tickets or handle lottery funds.
Bonds tied to certain warehouse operators and obligations involving stored goods or commodities.
Guarantee the faithful performance of duties imposed on certain public officials or employees.
Can guarantee certain obligations under a lease when the landlord or agreement accepts a surety bond.
Used in certain situations when a financial instrument, certificate, check, or security has been lost and replacement is requested.
Commercial surety includes many specialized obligations. Send us the form if yours is not listed.
May guarantee an employer’s required contributions to union benefit or fringe-benefit funds.
May be required as security when an employer is authorized to self-insure workers’ compensation obligations.
Send it to us. That is usually faster than trying to figure out the category first.
We’ll look for the bond name, amount, obligee, effective date, required form, and any special filing instructions.
The bond amount and the price you pay are not the same thing. You normally pay a premium to obtain the bond rather than paying the full bond amount.
License and permit bonds are part of commercial surety, but they deserve their own section because the requirements vary so much by business and jurisdiction.
Court bonds are also part of commercial surety, but the underwriting and paperwork are different enough that we handle them in a separate section.
No. The terms are sometimes mixed together in everyday conversation, but commercial surety and fidelity coverage are different.
A commercial surety bond guarantees an obligation of the principal to an obligee. Fidelity and commercial crime products generally address losses caused by dishonest acts such as employee theft.
If a customer is asking you for a “bond” because employees enter homes or handle customer property, send us the exact requirement. They may be asking for fidelity or crime coverage rather than a traditional surety bond.
These are commonly marketed as “janitorial bonds” or “business service bonds,” but the product is generally designed around employee dishonesty or theft rather than the same three-party obligation as a traditional commercial surety bond.
A utility deposit bond can be used when a utility company accepts a surety bond in place of some or all of a cash security deposit.
A public official bond guarantees the faithful performance of duties imposed on a public official or employee under the applicable law or bond.
Federal agencies require or accept surety bonds for a number of non-construction obligations. Examples can include customs, immigration, excise, and certain healthcare-provider obligations.
ERISA fidelity bonding is another specialized area. It protects an employee benefit plan against certain losses caused by fraud or dishonesty by people who handle plan funds or property.
Because ERISA fidelity is different from an ordinary commercial surety bond, it should be handled as its own product rather than buried under a generic commercial-bond label.
Many commercial bond requirements come from state law or state agencies, while others come from local governments, utilities, contracts, or federal requirements.
Our state pages will focus on requirements that actually differ by jurisdiction rather than publishing fifty copies of the same page.
Commercial surety information and state-specific bond resources for Pennsylvania.
Commercial surety information and state-specific bond resources for New Jersey.
It depends on the bond. Simple commercial bonds can move quickly when the requirement is clear and underwriting is straightforward. Larger financial guarantees, unusual bond forms, credit issues, or bonds requiring financial statements can take longer.
Send whatever created the bond requirement. The most useful items are:
Government agencies, courts, utilities, landlords, financial institutions, private companies, and other organizations can require bonds depending on the obligation.
Usually no. You generally pay a premium to obtain the bond. The bond amount is the stated surety obligation.
It depends on the bond. Some renew periodically, some remain continuous until canceled, and others apply to a specific transaction or obligation.
Do not assume so. Many bonds are tied to a specific obligee, jurisdiction, license, account, or obligation.
No. A surety bond guarantees a specific obligation. Business insurance generally protects the insured against covered losses.
Send it with the request. The surety needs to review the form it is being asked to issue.
Possibly. It depends on the bond and underwriting. Some commercial bonds have more flexibility than others.
Upload the bond form, letter, contract, bill, agency notice, or other requirement. We’ll figure out what bond they’re asking for and what we need next.
The Bond Agent | 3655A Old Court Rd, Suite 13 | Baltimore, MD 21208