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Commercial Surety Bonds
A commercial surety bond covers a very broad range of surety bonds that guarantee performance by the principal of the obligation or undertaking described in the bond. They are required of individuals and businesses by the federal, state, and local governments; various statutes, regulations, ordinances; or by other entities.
Eligibility
All WCIA members are eligible to apply for a bond. The approval of the bond will be contingent on the completion of an underwriting review. Eligibility is determined by but not limited to the review of the financial soundness of the principal, the indemnity to be provided, and the obligation being undertaken by the principal.
Additional documentation will be required.
About the Program
Commercial surety bonds can generally be divided into five types of bonds:
- License and Permit Bonds: Required by federal, state, or local governments as a condition for obtaining a license or permit for various occupations and professions. License and permit bonds include auto dealer bonds, mortgage broker bonds, contractor license bonds, and surplus lines broker bonds.
- Court Bonds (also called judicial bonds): Required of a plaintiff or defendant in judicial proceedings to reserve the rights of the opposing litigant or other interested parties. Court bonds include appeal bonds, supersedeas bonds, attachment bonds, and injunction bonds.
- Fiduciary Bond (also called probate bonds): Required of those who administer a trust under court supervision. Typically such bonds are executor and administrator bonds, trustee bonds, guardian bonds, and conservator bonds.
- Public Official Bonds: Required by statute for certain holders of public office, to protect the public from malfeasance by an official or from an official’s failure to faithfully perform duties. Public official bonds included county clerk bonds, tax collector bonds, notary bonds, and treasurer bonds.
- Miscellaneous Bonds: These are commercial surety bonds that do not fit into any of the types above. Included are a wide variety of bonds, such as warehouse bonds, title bonds, utility bonds, and fuel tax bonds.