License Bond are the most common types of bonds. Almost every business which needs a license or permit to do business requires a bond to guarantee the owners honesty, integrity, performance and payment. Most of the time license and permit bonds are required by a municipality, state or the federal government.
License Bond are generally credit and experience driven, however the License Bond form and penalty will determine the amount of underwriting and ease of qualification. Bond forms that have a standard cancellation clause and aggregate limit are often times instant issue or require very little underwriting. Performance related issues and bond forms that are open ended or financial guarantees will take more underwriting such as financial and experience analysis. Your underwriter will be able to determine which type of bond we are dealing with and walk you through the underwriting process with little trouble.
A bond that is not to a government agency regarding a license or permit but has similar language is referred to as Miscellaneous. A couple examples of miscellaneous bonds are utility guarantees or tax bonds.
- Contractor License Bond
- Tax Collector Bond
- Collection Agency Bond
- Mortgage Broker Bond
- Lottery Bond