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October 13, 2016

What Types of Surety Bonds Exist?

surety bonds
Given how many types of bonds, loans, and other contracts exist in this country, it should come as no surprise that there are many different types of surety bonds. What should come as a surprise though is just how many surety bonds exist. As of this writing, there are over 50,000 different types of surety bonds that exist in the United States. Of course, our job at All American Agency is to help you look at the bonds available to you and help you choose which one is the best fit for your current situation. With that in mind, here’s a quick rundown of a few of the more popular types of bonds that people commonly seek from All American Agency.
License Bonds

As its name implies, this type of bond simply means that a person will fulfill the obligations associated with their license or permit in exchange for being granted that specific license or permit. These are typically granted to specific business entities as a result of government rules and regulations in a local area.

Court Bonds

This is perhaps the most famous type of bond and the one that people are most readily familiar with. Put simply, a court bond guarantees that a person will appear in court on their specified date.

Contract Bonds

Also sometimes referred to as construction bonds, contract bonds are usually assigned to construction companies or other business entities in order to guarantee the specific details of a job bid, such as performance, supply, or maintenance.

Commercial Bonds

Commercial bonds act as sort of an umbrella for the many other types of bonds that don’t fall under any of the other previously mentioned categories. With commercial bonds, individuals are guaranteeing a service that does not normally fall under the same category as a court bond or a license bond. As a result, commercial bonds are considered to be less-risk to insurance companies and are thus more likely to be accepted for an individual.

If you’re interested in a bond for yourself or your organization, then be sure to contact us for more information. We can guide you through each step of the process and help you find the bond that will best address your needs.

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