Commercial Bonds – Zander Insurance

Commercial bonds provide protections for both businesses and consumers and are required for many industries, as decided by the state in which the business operates. In addition to the protections they offer, these bonds are often a requirement in obtaining professional licensure.

Are There Different Types of Commercial Surety Bonds?

There are several types of surety bonds including license and permit bonds, business service bonds, utility bonds, court bonds, fiduciary bonds, and more.

• License and Permit Bonds: Guarantees that the bonded business will follow rules and regulations. This protects the consumer, ensuring that if the business fails to abide by these standards, a claim may be filed against the business in question.
• Business Service Bonds: Protects consumers from crimes like theft and fraud committed by employees of the bonded business.
• Utility Bonds: Guarantees that the bonded business will pay their utilities on time; this is typically required by the utility company in cases where a large volume of utilities are expected to be used.
• Judicial Bonds: This is a type of court bond which protects a bonded business by limiting the losses that may result from a ruling. There are various types of judicial bonds including appeal bonds, bail bonds, and plaintiff’s-attachment bonds.
• Fiduciary Bonds: Commonly referred to as a “probate bond,” this is the other type of court bond, which guarantees that a fiduciary will execute his/her court-appointed responsibilities as dictated by law. Categories of fiduciary bonds include executor bonds, custodian bonds, and guardianship bonds.

How Much Is a $1,000 Surety Bond?

The price of a bond is based on the financials of the company that needs the bond. The rate per unit (which is calculated in units of $1,000) is negotiated by your contractor.

How Do Small Business Get Bonded?

The first step a small business must take to secure a bond is calling a trusted insurance agent and requesting the bond. The business should be prepared to provide financials and answer questions such as what jobs they’ve bid on in the past, what jobs they plan to bid on in the future, and a list of jobs on which they are currently working. The insurance company then proposes a bond amount to the business.

Ready to Take the Next Step?

You can also read information about contract bonds, and workers  . We’re here to answer any questions you may have, evaluate your needs, and start negotiating – give us a call at 1-800-356-4282 to get started.