Commercial Bonds create a guarantee that one party (Principal) will perform an obligation to another party (Obligee).  This guarantee is backed up by the Surety.  This is then a three party agreement.  The exact form of the bonds can vary from one situation to the next. Forms are not standardized.  The obligations can cover a broad range of industries and circumstances.  It is important that an experienced bond agent review this obligation and offer the appropriate answer to this bonding requirement.

Airlines Reporting Company Bond/Travel Agents Bond

This bond guarantees that the money collected by a travel agency for tickets sold by the agency will be forwarded to the proper travel providers.

Airport Customs Security Bond

When employees have access to U.S. Customs security areas at an airport, each such employee may be required to obtain and display an approved access seal issued by Customs.  The airport customs security bond guarantees that an employee would adhere to the customs rules and regulations while operating within the restricted area.

Alcohol Tax Bond

The alcohol tax bond guarantees compliance with federal or state laws or regulations administering the sale, manufacture, or warehousing of alcohol.

Auctioneer Bond

The auctioneer bond protects the owner of the property to be auctioned because of fraud, substitution, or misrepresentation of property by the principal (auctioneer).

Automobile Dealer Bond

*See Motor Vehicle Dealers Bond

Business Services Bond

The business services bond would protect the customers of a business from the dishonest acts of the business’s employees.

Collection Agency Bond

The collection agency bond protects the customers of collection agencies from from dishonest activity.

Contract Postal Unit Bond

The Contract Postal Unit Bond benefits Municipalities, States, and the Federal Government and guarantees the principal will comply with the related rules and regulations.

Courier Service Bond

The Courier Service Bond protects the clients of a courier service and will indemnify them against dishonest acts of the employees of the courier.  This bond requires a conviction to have coverage apply.

Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Bond

The Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Bond protects the Federal Government from non-compliance with regulations involving the sale of this type of equipment.


The Employee Retirement Income Security Act (ERISA) regulates most types of employee benefit plans. It requires that a fidelity bond be in place to cover the individual or business that is responsible for managing the plan and those persons who handle funds or other property of such a plan. These bonds are intended to protect the plan participants from dishonesty and fraud committed by individuals who are associated with them.

Funeral Directors Bond

Some governmental bodies require a bond to conduct the funeral business.  The Funeral Directors Bond guarantees that the laws, ordinances or regulations relating to a funeral director will be complied with.

Landscape Bond

The Landscape Bond is required by a municipality to guarantee that the owner of property will do the necessary landscaping and/or improvements as required by a municipality.

License or Permit Bond

The License or Permit Bond is typically required by municipal ordinance, county governments, or by a State.  The bond is to be filed prior to the issuance of a license. They guarantee that a business will obey the statutes and license requirements of the governing body.

Liquor or Malted Beverages Bond

A Liquor or Malted Beverages Bond will guarantee the payment of taxes by the seller.  This covers companies engaged in the sale, manufacture, or warehousing of the product.  This is a financial guarantee bond, and by nature, these bonds carry a higher degree of risk.  Application and underwriting are necessary prior to issuance.

Lost Instrument Bond

The Lost Instrument Bond is issued to allow the owner to obtain a copy of the lost instrument.  This may be a stock certificate, insurance policy, bond, certificate of deposit, or other financial document. The document may be lost, stolen or destroyed. The applicant for this type of bond will be required to indemnify the surety company for any loss if the original is used to cause financial loss to the surety.

Mortgage Brokers/Mortgage Bankers Bond

This bond is to benefit the public and guarantees that the mortgage broker will comply with the statutes, and the requirements of the license held.  The bond varies from State to State. 

Motor Vehicle Dealers Bond

The Motor Vehicle Dealer Bond is required to obtain your auto dealers license.  It guarantees you will operate according to the rules and regulations of the license and State in which the dealer is located.  Examples of claims may be violation of contracts, fraud, misrepresentation, misappropriation of funds, or other obligations stated in the appropriate state statutes.

Notary Bond

The Notary Bond guarantees the Notary will comply with the requirements of the designation.

Pawn Brokers Bond

The Pawn Brokers Bond is required of persons issued a pawnbrokers license to ensure that they follow all laws relating to the pawnbroker business.

Pharmaceutical Bond

The Pharmaceutical Bond is required by the Federal Government to sell Pharmaceutical Products.  The bond guarantees the principal will follow the regulations and requirements associated with the license.

Public Official Bond

A Public Official Bond guarantees the performance according to the standards expected of the public official.  The official is also expected to provide an honest accounting of all public funds and this bond provides for this as well.

Sales Tax Bond

The Sales Tax Bond guarantees the payment of sales taxes as provided by the taxing authority where the principal is located.

Sports Club/Health Club Bond

The Sports Club/Health Club Bond protects the members of a health or sports club if the club or spa goes out of business.  It would guarantee the refund of unearned membership fees.

Stockyard Bond

The Stockyard Bond guarantees payment for livestock purchased at Stockyard and accounting for funds received.

Subdivision Bond

Local Authorities require a guarantee that the landowner completes mandatory public improvements in the process of a construction project.  The subdivision bond guarantees that those improvements will be done.

Tobacco Tax Bond

The Tobacco Tax Bond guarantees the payment of taxes from the sellers of tobacco products.

US Customs Bond

The US Customs Bond guarantees that the Customs Fees will be paid from importers/exporters.

Utility Deposit Bond

The Utility Deposit Bond guarantees the payment of utility fees.  This bond required by some utilities is a financial guarantee bond.

Wage and Welfare Bond

The Wage and Welfare Bond guarantees the payment of benefits to employees.  Typically the obligee here is a union.

Wine Tax Bond

The Wine and Tax Bond is given by those engaged in the manufacture or sale of alcohol to guarantee compliance with regulations, and payment of taxes.

Workers Compensation Bond

The Workers Compensation Bond is provided to guarantee the compliance with workers compensation statutes in the state or jurisdiction in which they do business.

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