The common types
| Type | What it guarantees | Typical obligee |
|---|---|---|
| Licence and permit | The business follows the rules of its licence | State or city licensing body |
| Tax | Payment of taxes such as fuel, alcohol or sales tax | State tax authority or federal agency |
| Court | Compliance with a court order or judgment | The court |
| Fiduciary | Proper handling of an estate or trust | The court |
State by state
Bond amounts, forms and surety licensing rules are set by each state, and often by each city or county. The obligee's form governs. Send the form or a link to the rule and we confirm the requirement before quoting.
What underwriters look at
- The type of bond: many licence bonds are underwritten on credit and basic financials; tax and court bonds look deeper.
- The client's financial statements and owner credit.
- The client's US entity and state registrations.
- Claims history on any past bonds.
Every bond is subject to underwriting.
The Canadian side
Many clients need bonds on both sides of the border. Canadian requirements, such as customs and excise and licence and permit bonds, go through the Canadian commercial surety desk.
