License and Permit Bond Information
What is a License and Permit Bond?
General Business License Bond and/or permit bonds (also referred to as a commercial surety bond or license and permit bonds)protect consumers from harm since license and permit bond guarantees businesses will adhere to laws and other regulations enforced by federal, state and local governments. General Business License Bonds and Permit Bonds are a guarantee that’s required by the states based on your business industry and act as a condition to followstates mandated laws and regulations, granting a license or permit to engage in a specified activity or business. If you break the regulations, claims can be filed which you’re responsible to pay a certain amount. Business License Bond is a general term or category that around 4000 bond requirements would fall under.
How Much Does a License and Permit Bond Cost?
Many license and permit surety bonds may be provided instantly without underwriting for a minimal amount—typically you may be required to pay just 1% of the total bond amount. This means that even though your required total bond amount may be $10,000, you may be required to only pay a $100 premium of that certain bond amount. Many state license and permit bonds can also be provided instantly, however there are some states license and permit bonds that are required to also be reviewed by an underwriter before the certain amount can be determined. To get approved for state license and permit bonds, the person purchasing the license and permit bonds are required to provide their financial history, meaning the amount an applicant is required to pay for the license and permit bonds will be determined by their credit. Those with good credit are more likely to be approved for license and permit bonds. License and permit bonds can still be purchased with bad credit, but the amount required will be more than someone purchasing a license and permit bond with good credit. In some states for certain types of bonds, the state may have regulations requiring some form of surety bond insurance. The certain type of protection and surety bond insurance required varies by industry and states laws and regulations.
Benefits of Licensing and Bonding
License and permit bonds protect the public since the license and permit bond guarantees that a business will adhere to certain industry laws and regulations. For example, an insurance adjuster bond is required by many states for insurance adjusters to be licensed, which ensures the states and individuals are protected from any unlawful acts that may be committed by the licensed insurance adjuster.
Types of License and Permit Surety Bonds
Most bond types are self explanatory. For example the MVD license bond or Car Dealer License bond or Auto Dealer License bond types are industry specific to the Motor Vehicle Dealer business applying for a license to do business is his/her specific state. If you are unsure what certain type of license and permit bond you are required in your state for your business or industry, we typically ask the following questions to help guide us in the right direction:
- What will the license and permit bond guarantees?
- Who is requiring you to get a license and permit bond?
- Are you applying for a license or a permit of some type?
- Is there a contract specific to the bond that’s required?
Below are some of the most popular types of license and permit bonds.
- Agricultural Packers Bonds
- Alcohol Bonds
- Appraisal management Company Bond
- ARC Bonds
- Athlete Agent Surety Bonds
- Auctioneer Bonds
- Auto Dealer Bonds
- Brewers Bond
- Broker Bonds
- Business Services Bond
- Contractor License Bond
- Freight Broker Bond
- Fundraiser Bonds
- Insurance Adjuster Bond
- Insurance Broker Bond
- Lottery Bonds
- Medicare Bonds
- Livestock Dealer Bonds
- Medical Marijuana Bonds
- Mortgage Broker Bonds
- Mixed Beverage Sales Tax Bond
- Personal Care Assistance Agency Surety Bond
- Patient Trust Bonds
- Pawnbroker Bond
- Public Adjuster Bond
- Real Estate Agent Broker Bond
- School Bonds
- Seller of Travel Bonds
- Talent Agency Bond
- Telemarketing Bonds
- Title Agency Bonds
- Third Party Administrator Bond
- Utility Bonds
- Wage & Welfare Bonds
- And many many more...
As stated, the answers to these questions will help guide us in the right direction. If you would like help with this before applying, give us a call or chat with us. If it is off work hours, our chat is always on and the questions go to email. We will get back to you as quickly as we can. Many different business are required to have license bonds, which is why license bonds are the most extensive category of surety bonds. States We are Licensed to Serve: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming ACS Surety Bond Company, All Rights Reserved.
