The infographic “An Insight into Commercial Surety Bonds” describes the aspects of commercial surety bonds. It lists various types of commercial bonds with examples and costs. Commercial surety bonds are often required by government agencies at the federal, state, or local level. These types of bonds provide financial protection for parties in commercial transactions, financial assurance from businesses that are required by various levels of government, and also protect the customers from fraud, misrepresentation, or non-performance.
Different types of commercial surety bonds include:
- Federal non-contract bonds – Required by the federal government
- Public official bonds – Guarantee the performance of duty by a public official
- Judicial bonds – Also known as fiduciary bonds, they secure the performance of fiduciaries’ duties and compliance with court orders
- License and permit bonds – Typically required by state or local regulations in order to obtain a license or permit to engage in a particular business
- Subdivision bonds – These bonds guarantees to a city, country, or state that the principal will finance and construct certain buildings
For more information about different types of commercial surety bonds and their costs, please refer to the infographic.