Contractor license bonds are legally enforceable contracts binding three separate parties: The construction professional buying the bond is the principal. The public entity requiring the contractor to be bonded is the obligee. The company issuing the bond and guaranteeing the contractor's obligation is the surety. If a contractor fails to fulfill the bond's terms, the obligee can file a claim on the bond to compensate for any damages. However, the surety will not absorb the loss. The contractor is expected to reimburse the surety for any money it pays when settling a bond claim.

A performance bond is a guarantee that a contractor will complete a construction project according to the agreed-upon contract. If a contractor defaults on a project, the bond amount is used to recover the project owner’s losses.

Freight broker bonds, also known as BMC-84 bonds or ICC broker bonds, ensure that licensed freight brokers and forwarders adhere to regulations. Title 49, U.S.C. 13904 requires all freight brokers and freight forwarders to file either a surety bond (BMC-84) or a trust fund agreement (BMC-85) before beginning business operations.

Unlike an insurance policy that protects your cleaning business, a janitorial service bond protects your customers if an employee steals while on the job. These bonds can give your customers peace of mind and establish credibility for your cleaning company. These bonds are also referred to as "business service bonds" or "cleaning service bonds."

An auto dealer bond is a surety bond required for almost all new and used car dealers. Dealer bonds protect consumers from fraud and wrongful actions committed by car dealerships and their employees. ​ This bond goes by a variety of names, including: Automobile bond, Car dealer bond, Dealer bond, Wholesale dealer bond, Motor vehicle dealer bond, Used car dealer bond.

Call 1 (310) 299-5555 to talk with a Surety Expert today.