There are numerous types of surety bonds for businesses. They usually vary from state to state in terms of their requirements, names as well as specifications. In this quick post, you will learn more about surety bonds and why you may require them as well as an overview of their several types.
First and foremost, let’s discuss why it’s important to have surety bonds for business. Well, they are usually a requirement by the state government in order to run a business or hold a certain type of permit or license. The bottom line is that you need them to even start running your business or pursue certain professions.
However, many types of surety bonds are advantageous in that they help boost your trust and reputation within the community. Clients who see that you are fully insured and bonded view you as a reliable service provider and will know that you will do the project properly and professionally.
With that covered, what are the various types of surety bonds for business? Well, there are dozens and dozens of these bonds, but in this section, we are going to mention the major ones:
As we mentioned earlier, these vary from region to region, but professional licenses may include a wide array of different careers. You may need the license itself, as well as proper bonding to protect yourself as go about your career and also ascertain that you stay within the regulations.
Contractors and Construction
These are some of the popular surety bonds for business. You will come across contractors stating that they are bonded and insured as a way to ascertain trustworthiness and good reputation. Different types of contractors like roofers, plumbers, etc. require various kinds of licenses and bonds.
These include numerous different sub-sets like luxury car dealers, used auto dealers and more. For each though, you will need a surety bond before you even open your business doors and they will need to be renewed every year.
Bids, Contracts and Performance
These vary from the rest, but they are related types of surety bonds. The bid ones lock contractors into the price they put forth during the bidding process of a project. Contract bonds ascertain that you meet all the requirements of a contract and the performance ones ascertain that you complete the project in regards to the set specifications and quality.
This is just the start though. The complete types of business surety bonds would be huge and include other categories like Medicare and Medicaid providers, telemarketing, utility agencies, seller of travel, schools, title agencies, promoters and agents, alcohol and tobacco sales, financial services, sporting events, lottery sales and many others.
I hope that you have learned a bit more regarding surety bonds for business and their common types. If you want to know more about the specific requirements and regulations for bonding and licensing, you can visit Bond Express. You can also check with your state government for the business you intend to start.