Types of Surety Bonds for Business

By John Rothschild

There are many different types of surety bonds for businesses. These will vary from state to state in terms of their names, their requirements and specifications, and more. In this quick guide, you'll learn a little bit more about business bonds, why you may need them, and an overview of their various types.

First, why is it important that you have surety bonds for business? They are often a legal requirement of a state in order to conduct business or hold a certain form of license or permit. Therefore, you need them to even begin running your business or pursuing certain professions.

However, in addition to this, many types of surety business bonds will help boost your reputation and trust within the community. Consumers who see that you are fully bonded and insured can depend upon you for actually completing your work, and doing it properly and professionally.

With that out of the way, what types of surety business bonds are available? The quick answer is that there are dozens and dozens of different business surety bonds. Let's discuss a few of the over-arching categories to help give you a better idea.

• Professional licenses: As mentioned, these vary by state, but professional licenses may include a huge range of different careers. You may not only need the license itself, but also the proper bonding to protect yourself as you pursue this career and ensure you stay within regulations.
• Auto Dealers: Auto dealers include many different sub-sets, such as used auto dealers or recreational vehicle dealers. For each one though, you'll like need a business surety bond before you ever open your doors, and these will need to be renewed annually.
• Contractors and Construction: These are some of the most well known business surety bonds. Contractors often advertise being "bonded and insured" as a testament to their reputation and trustworthiness, as mentioned above. Different varieties of contractors, from plumbers to roofers and everything in between, though may need different licenses, and bonds.
• Bids, Contracts and Performance: These are different but related types of surety bonds. Bid bonds lock you into the price you put forth in a project bidding process; contract bonds ensure you fulfill all aspects of a contract, and performance bonds ensure you complete a project and fulfill the performance you set out to do.

That's just the start though. The full list of types of surety business bonds would be massive, and includes a few other popular categories such as telemarketing, seller of travel, Medicare and Medicaid providers, utility companies, title agencies, schools, health clubs, sporting events, promoters and agents, agricultural bonds, financial services, collection agencies, alcohol and tobacco sales, lottery sales, and many others.

Hopefully you've learned a little bit more about the types of surety bonds for businesses which exist today. Be sure to check up with your state's specific regulations and requirements for bonding and licensing for the business you run, or the career you plan to pursue.

John Rothschild is the owner of ACI Insurance Services, a leading provider of Florida surety bonds. ACI is known for their customer service, and their affordable rates, and they'll do everything they can to meet the needs of their clients. Learn how to get started with Florida business bonding insurance by visiting LowCostFloridaInsurance.com or calling John directly at 407.889.2612.

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