License & Permit Bonds

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License and permit bonds, also known simply as license bonds are often required before a business can operate legally in a given state. Before a business can receive a license and begin providing services to clients, they must obtain the appropriate bond. Learn more below, or request a quote today through our convenient online quote form.

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How Does It Work?

License bonds offer a form of protection for consumers. The bond operates as a guarantee ensuring that the business functions as it should and adheres to designated rules and regulations. If the business is unable to comply, a consumer can make a claim against this bond.

In essence, the license and permit bond behaves as insurance protecting the integrity of the consumer against the business. As long as the company obeys the laws set out for them, they do not have to be concerned with anything happening to their bond.

It is important to note that if you decide to conduct without a commercial bond, you will be charged. Practicing without one is an offense, and you can potentially face jail time. To avoid this, get bonded today.

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Bonds Vs Insurance

Although these bonds may be thought of as a kind of insurance, this does not imply that surety bonds and insurance are one and the same. Instead, a license surety bond is an indication to consumers that money has been allocated by the company if the contractor does not adhere to their work obligations.

Types Of License & Permit Bonds

Almost every industry requires surety bonds. Here are some of the most common for licensing:

  • Contractor License Bond. This bond ensures that contractors, electricians, plumbers, and general contractors follow their contractual obligations.
  • Customs Bonds. Any business importing goods into the United States must obtain a custom bond. Ultimately, the purpose of such bonds are to guarantee that businesses follow mandatory import/export laws.
  • Auto Dealer Bonds. Any business selling automobiles must purchase this bond to ensure that they follow any industry, state and federal regulations.
  • Reclamation Bonds. This bond is related to protecting the environmental in the mining industry.  In addition, it also safeguards parties operating legally and guarantees that they do not harm the environment.
  • Health Spa Bonds. All spas must purchase a health spa bond.  Moreover, a health spa bond ensures that all applicants follow applicable laws and regulations.
  • Agricultural Packers Bonds. Any company that sells or resells agricultural products must purchase an agricultural packers bond.
  • Alcohol Bonds. Anyone who manufactures, sells, ships or warehouses alcoholic beverages is required to purchase this bond. Also, an alcohol bond keep a check on the payment of taxes collected on liquor and other alcoholic beverage sales.
  • ARC Bonds. Any legally operating travel agency must purchase this bond, per the industry regulations that the Airlines Report Commission enforces.  In addition, this ensures that the travel agency submits air travel payment collected from the customer to the airline.
  • Brewers Bond. Anyone looking to legally operate a brewery must purchase this bond. It is also known as a TTB bond.
  • Broker Bonds. The different types of Broker Bonds available are Freight Broker, Insurance Broker, and Mortgage Broker Bonds.
  • Business Opportunity Seller Bond. This bond ensures that someone who is looking to open their own business (ergo, who wants to create a “business opportunity”) abides by the state’s respective laws and regulations.
  • Cigarette Tax Bonds. Anyone distributing cigarettes must purchase this bond. Incidentally, it ensures payment of taxes on cigarettes.
  • Collection Agency Bonds. A collection agency must purchase a collection agency bond before legally operating.  Presumably, this is done to guarantee that they operate within the specific rules and regulations of the industry.  This is a high risk bond, because collection agencies in the business of collecting debts, and often have a negative reputation in the public eye.
  • Credit Services Organization (CSO) Surety Bonds. A form of protection for buyers of various credit services which guarantees that CSOs comply with all applicable state regulations.
  • Department of Defense (DoD) Performance Bond. All transportation brokers wishing to transport DoD freight must purchase this bond.  It is also known as a Military Freight Bond.
  • Detective/Private Investigator Bond. A Detective/Private Investigator Bond is commonly known as a private investigator bond.  A key benefit is that it safeguards clients when receiving services from professional investigators.
  • Franchise and Ordinance Bond. Guarantees that those licensed to grant a privilege on a public property comply with all regulations and ordinances.
  • Freight Broker Bonds (BMC-84). Important for operation as a transportation broker, and is a requirement of the Federal Motor Carrier Safety Administration (FMCSA).  However, it mainly protects shippers and motor carriers.
  • Fuel Tax Bonds. Used to check the payment of taxes on fuel sold. 
  • Grain and Commodity Bonds. Guarantees the compliance of regulations governing dealers of grain and other commodities, which includes payment to producers, as well as other protections. 
  • Health Club Bonds. Ensures that a health club makes good on their customers’ prepaid membership.
  • Home Dealer Bonds. Must be obtained by home dealers to guarantee their performance with off-site built homes. 
  • Money Transmitter Bonds. Required by most states to guarantee that money transmitters operate within the terms of their license.

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Our surety bond professionals will help you with your bond need easily and quickly. Apply now!

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