The three key types of surety bonds that you may need in Florida include:
License & Permit bonds: A license and permit bond is a type of commercial surety bond that is usually required by states and municipalities to acquire a license in a given industry. These bonds provide assurance that the licensed entity or business will perform its work according to a particular statute or statutes which govern or regulate their industry. Various types of individuals and businesses such as contractors, auto dealers, agricultural dealers, and many others require this type of bond in order to operate legally. In case the licensee fails to meet the terms of his license, he or she may lose the license and face a possible claim or claims on their license bond. If it is proven to be a lawful claim, the surety will pay the claim as required.
Contractor bonds: Contract bonds including bid, performance, and payment bonds are necessary to work on public construction projects. These types of bonds are usually required by cities or municipalities rather than the state. A contractor bond covers three separate parties: the construction professional (principal), the state agency (obligee), and the surety company that issues the bond.
Court bonds: Court bonds are another important type of Florida surety bonds that can be categorized into judicial bonds (protect against the uncertainties involved with court proceedings) and fiduciary/probate bonds (required for individuals appointed by the court to care for others or manage others’ assets).
