There are thousands of different types of surety bonds. They range from bonds required from government institutions that help agencies enforce licenses and regulations to surety bonds that help ensure court rulings are enforced. Here at SafeLine Surety Bond, we offer a wide range of surety bonds for every industry and every professional.
Surety bonds not only help professionals hold and keep a professional license, but they also help legitimize a person’s business. A bond is proof to the world that this company understands the laws and regulations. More importantly, a bond states that if anything goes wrong, there is an instrument to help right any wrongs. Customers love to work with companies that are properly bonded. Many companies that don’t require a bond for a license still get bonded.
Surety bonds are legally binding contracts between three parties. All surety bonds are made up of three parts.
1) Obligee: This is who requires the bond. More often than not, they will set the terms and determine the amount of the bond. Some bonds
2) Principal: The person who owns the bond. They are responsible for fulfilling the terms of the bond.
3) Surety: This is the firm that issues the bond. They are also liable in the case of a claim against the bond. It is important to find a surety company that is licensed and registered to do business in your industry, like us at SafeLineSuretyBond!
Surety Bonds can typically be found under Four different categories
Contract Bonds: These bonds are used to hold a party responsible for a contractual agreement. They are most common in the construction industry, but they can be found in all types of businesses. Contract bonds are some of the most common types of surety bonds.
Commercial Bonds: Many businesses are required to get a commercial bond before they can be legally allowed to do business. This type of bond is usually required if a person needs a professional license to do business.
Court Bonds: Judges may require a person to obtain a court bond in response to a court order. These bonds could be used to ensure that a court order is followed or that a person follows through with a legal document. Either way, the court bond assures the courts that there is some sort of instrument to ensure that the bond holder has some sort of financial safeguard if they fail to comply with any court rulings.
Fidelity Bonds: Unlike many other surety bonds, fidelity bonds help protect the bond holder if an employee acts unlawfully. Many businesses are not required to get a fidelity bond but do so anyway as a marketing tactic. People like to do business with bonded companies because, in the event that anything does go wrong, all parties are protected.
Who is the obligee?
The obligee is the business, entity, or company that requires you to obtain a surety bond in order to do business. It is important to know who is requiring your business to get a surety bond. There are 3 common categories that may require you to get a surety bond.
Government: The government issues more than a million different licenses for businesses to legally do business. In order to help them enforce the laws and regulations that come with these licenses, they often require the use of surety bonds. A person must first be bonded in order to get a license. The surety bond then offers a financial deterrent in the event that a person breaks any of the rules and laws that are listed in the professional license.
There are two government departments that may require a surety bond. State Government & Federal Government
Private Business: When a private business hires another business to work on a project, they will write a contract. In this contract, they will outline all the work that is expected to be performed by the hired business, as well as any rules and regulations that must be followed while working for their private business. A surety bond is used to help a private business enforce their contract.
Courts: Most surety bonds that are required by the courts are in the civil courts. These bonds are required in conjunction with a court ruling or filing.
Find A Bond by Obligee
- Alcohol and Tobacco Tax and Trade Bureau (TTB)
- Athletic Commission
- California Tax Education Council (CTEC)
- Construction Developer
- Contractor’s State License Board
- County Clerk’s Office
- Court Bonds—Fiduciary (Probate) Bonds
- Court Bonds—Non-Fiduciary
- Department of Business Oversight
- Department of Consumer Affairs
- Department of Financial Protection and Innovation
- Department of Fish and Wildlife
- Department of Food & Agriculture
- Department of Health Services
- Department of Housing and Community Development
- Department of Industrial Relations
- Department of Insurance
- Department of Justice
- Department of Labor
- Department of Motor Vehicles
- Department of Real Estate
- Department of Resources, Recycling and Recovery
- Department of Revenue
- Department of Social Services
- Department of the Treasury
- Department of Transportation
- Federal Motor Carrier Safety Administration
- Financial Institutions
- Local Business
- Public Utilities Commission of the State of California