ALL ABOUT LICENSE & PERMIT BONDS
There are a myriad of bonds that are required of businesses, contractors and individuals in order to obtain licenses or permits from Government Agencies. These bonds guarantee that the business or individual (Principal) will comply with the terms of the permit or the underlying statues governing the license. The Surety guarantees that the Principal will pay any fines associated with the license or permit and that the Government is protected against loss from citizens that are damaged by the Principal’s failure to comply with the license or permit.
TYPES OF LICENSE OR PERMIT BONDS
The types of License bonds are generally broken into two categories:
1. Bonds that require Compliance with a Statue or Code such as Plumbers, Electricians, or other Contractors License Bonds or Bonds required of Home Builders, Auto Dealers, Mortgage Brokers, etc.
2. Bonds that guarantee tax payments or remittance of money such as Motor Fuel Tax Bonds, Union Wage & Welfare Bonds, Non Resident Tax Withholding Bonds,
HOW DO WE UNDERWRITE AND APPROVE LICENSE & PERMIT BONDS
License & Permit Bonds are generally approved based upon the credit score of the applicant or the business owner(s). For some larger bonds, the applicant may be asked to give personal financial statements or business financial statements.
If you have poor credit WE CAN HELP and we can write your bond! Just answer the credit question on the application and we’ll know how to proceed.
WHAT DO WE CHARGE
For simple compliance bonds we typically charge 1% of the bond amount. For Bonds that guarantee tax payments or remittance of money the rates will be more like 2.5% +/-. Once we have your application and all other required information, we’ll get you an exact quote.
To apply: Click here for our Quick Response Form or our full L&P Application