Bond Type Guide
License & Permit Bonds
License and permit bonds are required by government agencies to obtain or maintain a business license.
What is a License Bond?
A license bond (also called a permit bond) is required by a government agency as a condition of obtaining a business license. It guarantees that the business will comply with applicable laws and regulations.
Common Types of License Bonds
How Much Do License Bonds Cost?
Most license bonds cost between $100-$500 per year. The exact premium depends on the bond amount required by the state and your personal credit score.
Other Bond Types
Bid Bonds
A bid bond guarantees that a contractor will honor their bid and enter into a contract if awarded the project.
Performance Bonds
A performance bond guarantees that a contractor will complete a project according to the terms of the contract.
Payment Bonds
A payment bond guarantees that a contractor will pay subcontractors, laborers, and material suppliers.
Court Bonds
Court bonds are required by courts during legal proceedings, including appeal bonds, guardianship bonds, and fiduciary bonds.
Fidelity Bonds
Fidelity bonds protect businesses against employee dishonesty, theft, and fraud.
Commercial Bonds
Commercial surety bonds encompass a wide range of bonds required for business operations beyond construction.