Commercial bonds are used to protect consumers against deception and provide compensation of monetary loss. These bonds are typically required by federal and state courts, government bodies, financial institutions, and private corporations. Some of the important types of commercial surety bonds include:
License and permit bonds: License and permit bonds include all types of bonds required by an obligee in order for the principal to acquire a license for performing work within a specific jurisdiction. Some of the common types of commercial bonds are mortgage broker bonds, insurance agent bonds, auto dealer bonds, and surplus lines agent bonds.
Court bonds: Court bonds include all types of bonds required by courts in various proceedings. Some of the most common court surety bonds are attachment bonds, court costs bonds, indemnity to sheriff bonds, and fiduciary surety bonds.
Public official bonds: Public official surety bonds include all surety bonds related to public officials. These bonds assure that the public officials will perform their duties honestly and faithfully. County clerk bonds, notary bonds, tax collector bonds, and treasurer bonds are some of the most common types of public official bonds.