Have you been told you need a Surety Bond for your business?  What is a Surety Bond….



Surety Bond is a written three-party contract in which the surety and the principal become obligated to the oblige for the payment of a sum of money if the obligation set forth in the bond is not fulfilled by the principal.  Small businesses often need one or more types of surety bond.  With thousands of types of surety bonds, it is almost impossible to address all of them, but there are 5 common surety bonds that a small business may need.


  1. License and permit bond. A license and permit bond might be needed before a business can receive a business license.  Types of license and permit bonds include: Notary bonds, Contractor license bonds, motor vehicle dealer bonds, Private investigator bonds, and Collection agency bonds
  2. Fidelity bond. A fidelity bond will protect your business from financial loss from a book-keeper or an employee directly responsible for handling money
  3. Business service bond. A business service bond protects your customers in the event an employee steals from them while on the job
  4. Contract bond. A Contract bonds cover the performance of the contract such as staying within a budget, meeting a deadline or using certain materials specified in the contract
  5. Court bond. If a small business is involved in a trial, often times the court may require a court bond before the trial begins. Types of court bonds include: appeal bonds, injunction bonds, cost bond, and garnishment bond

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