Commercial Bonds are a general classification of bonds that cover obligations typically required by law or regulation, and generally are necessary to support a business or professional license or permit. There are dozens of different types of surety bonds that fall within this category, and each is unique depending on the circumstances.

Commercial Bonds are required by government agencies primarily to protect against consumer fraud or assure public safety. Some bonds in this category are required by law or as a condition of statute, ordinance or regulation and can be required by federal, state or local government. Other bonds are required by private agreement with a third party.

Examples include:

Auctioneer Bonds – compliance with the applicable state laws and regulations, and is for the protection of any buyer or consignor against misconduct of the Auctioneer or Trading Assistant.

Cigarette Tax Bonds – guarantees cigarette distributors payment of taxes.

Collection Agency Bonds – guarantees faithful accounting of money collected.

Contractor License Bonds – guarantees compliance with government laws and ordinances.

Customs Bonds – compliance with the regulations of the United States pertaining to importing and related activities.

DMEPOS Medicare Bonds – guarantees that Suppliers of Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) will fulfill their obligation to Medicare.

Employment Agency Bonds – compliance with laws governing the operation of employment agencies and protects consumers against fraud and misrepresentation.

Freight Broker Bonds – guarantees delivery of brokered goods.

Fuel Tax Bonds – compliance with ordinances in connection with the payment of taxes on fuel use and/or distribution.

Health Care Agency Bonds – compliance with state laws for individuals and businesses providing home health services.

Health Club Bonds – compliance with state laws and provides for reimbursement of customer’s payment if services are not rendered.

Highway Permit Bonds – indemnifies the state’s highway department against liability of damage to property due to the hauling of excess loads or the operations of the excess length trucks and trailers.

Insurance Adjuster Bonds – compliance with state regulations for businesses processing claims for insurance companies.

Insurance Broker Bonds – guarantees that the insurance agent or broker will comply with state laws and account to their companies and the public for insurance premiums.

Liquor Tax Bonds – guarantee payment of taxes collected from the sale of alcoholic beverages.

Lost Instrument Bonds – protects the issuer of a duplicate security against anyone claiming to be the owner of the original instrument/security. The instrument must be lost at least 60 days.

Lottery Agent Bonds – guarantees remittance of all lottery ticket proceeds to the state.

Money Transmitter Bonds – guarantees that a business that remits or transfers money is licensed and operates in accordance with state laws and regulations.

Mortgage Broker Bonds – compliance with state laws for the placement of mortgages.

Mortgage Lender Bonds – compliance with state laws for the placement of mortgages and protection against misrepresentation and proper accounting of funds.

Motor Vehicle Dealer – compliance with state laws and regulations, payment of tax, and in some cases, payment of judgments.

Oversize / Overweight Bonds – indemnifies the state’s highway department against liability of damage to property due to the hauling of excess loads or the operations of the excess length trucks and trailers.

Patient Trust Fund Bonds – guarantees that the funds of patients held in trust by the principal will be handled and accounted for in a proper manner.

Pawnbroker Bonds – compliance with laws and regulations and proper accounting for property sold.

Payday Loan Bonds – compliance with state rules and regulations and protection against predatory lending practices.

Private Detective Agency Bonds – compliance with state laws governing the licensing of detective agencies.

Sales Tax Bonds – guarantees that sales taxes that are collected will be remitted to the state and sales tax returns will be filed in a timely fashion.

Secondhand Dealer Bonds – compliance with laws regulating a person or business that buys or sells secondhand articles.

Street Obstruction Bonds – compliance with ordinances and indemnifies the city against claims arising by reason of a permit to obstruct streets.

Telemarketing Bonds – compliance with state regulations when engaged in the business of telemarketing.

Third Party Administrator – guarantees collection and payment of funds, and protects against misappropriation, fraud or dishonesty committed by the principal handling the funds in connection with the administration of an employee benefits program or insurance administrator plan.

Title Agency Bonds – guarantees payment of premium taxes received when insurance is placed and faithful accounting for funds received from clients.

Travel Agency Bonds – ARC (Airlines Reporting Corporation) – guarantees payments for airline tickets collected by the travel agency.

Retro Premium Guarantee Bonds – guarantees the payment of additional premium due an insurance company on a large policy after audit at the end of the obligation to determine the amount of any additional premiums due .

Utility Deposit Bond – guarantees the utility payment or deposit.

Unemployment Compensation Bonds – required of non-profit organizations and guarantees remittance of unemployment compensation on an annual basis as opposed to quarterly filings.

Union Wage and Welfare Bonds – guarantees a contractor will be current with their union dues, wage and fringe benefit payments.

Workers Compensation Self Insurance Bonds – guarantees payment of claims for worker’s compensation out of the employers own funds rather than insure such claims with an insurance company.