A commercial surety bond covers aspects that are not covered by the contract surety bonds. You can learn more about the sub-categories below:
License and Permit Surety Bonds
The License and Permit Surety Bonds are required by some States, Municipal, and Federal governments as a prerequisite to obtaining a license for a certain business or activity. The bond serves as a guarantee by the surety, towards the obligee, that the principal will abide by the State laws, rules, and regulations.
The terms ‘permit bonds’ and ‘license bonds’ can be used interchangeably.
Because every bond is specific to its industry, any business within said industries may be required to furnish a permit bond before it can legally operate. Since the obligee in that circumstance is the State, the bond is meant to protect people from fraudulent practices.
Fidelity Surety Bonds
Fidelity Surety Bonds are meant to manage the risks in a financial transaction. It is often required when two commercial bodies engage in a commercial transaction. This bond protects both parties’ assets.
For example, fidelity bonds may be purchased by employers to protect them against dishonest employees. If needed, the surety will pay for any losses caused by the covered employees. This kind of bond protects the principal in a transaction that carries any risk.
Fiduciary Surety Bonds
Also known as Probate Bonds, Fiduciary Surety Bonds are a type of court bond where an individual is acting on behalf of others. This bond guarantees that the fiduciary will abide with courts’ directions and requirements as well as following State rules. Many probate courts require fiduciary bonds.
The bond guarantees that the fiduciary will act in an honest manner. It protects the owner of the property whose interests the fiduciary is representing, from any fraud or misrepresentation. The obligee here is the court and the person(s) who the fiduciary is representing. If the fiduciary violates any of the rules and regulations regarding his/her duty, the surety will have to compensate for it. The fiduciary will, in turn, pay the surety.
Public Official Surety Bonds
The Public Official Surety Bond is meant to protect the interest of the general public. This bond is required of people who are appointed to public offices and guarantee that they will perform their duties with honesty and integrity. Officials who may require a public official surety bond consist of Judges, Law Enforcement Officials, Notaries Public, Commissioners, and Town Clerks.
Court bonds are required by the court in various cases. They are divided into judicial bonds and fiduciary bonds. Judicial bonds are often part of the litigation process. They are required by parties that are either asking for or defending against court remedies.
Companies We Represent
Our strength not only lies in our people, but in the company we keep. And since we represent the leading surety companies nationwide, our strength translates into greater capacity and better terms. It also enables us to adapt quickly to changing markets and deliver surety bond solutions that fit your specific needs.
Our core philosophy revolves around three key words – integrity, dedication and excellence. The reason more companies look up to us is because we continually look after them. We guarantee that no other company, nationwide, will provide you with better service, more negotiating power and better rates.
Nielson, Hoover & Company’s fast and convenient mobile application “#1 Bond Request” is a free app that allows you to quickly and easily submit a bond request from any location no matter how remote. This app was created so you can request a Bid or Performance and Payment Bonds anywhere, anytime.