Commercial Bonds

Commercial bonds is a category of surety bonds that pertain to non-contractual commercial business. Commercial bonds are purchased by a company or professional and are required on the basis of a legal statue as opposed to a private contract.

Simply put, commercial bonds are used to make sure business owners uphold federal and local laws that protect consumers from physical and financial harm.

commercial bonds

Unlike contract bonds that ensure the completion of a contract, commercial bonds are intended for the benefit of the general public. There are many types of commercial bonds that can be broken down into three commercial bond categories: construction/contract bonds, license and permit bonds, and court bonds.

Here are some of the most common types of commercial bonds:

Alcohol Tax Bond

For businesses that are licensed to sell alcohol, this surety bond ensures the full and accurate tax payment associated with alcohol sales.

Business Service Bond

For companies that have employees working in clients’ homes or offices, this optional surety bond protects clients from employee theft.

Court Bonds

For individuals engaged in various court proceedings, this sub-category of commercial surety bonds covers a wide range of legal obligations and court-appointed tasks.

Employee Theft Bond

For companies with valuable assets, this optional surety bond protects against losses due to employee theft or collusion among multiple employees.


For persons who handle funds or other property of an employee benefit plan, this type of bond protects the plan from losses incurred due to acts of fraud and dishonesty.

H-2A Surety Bond

For farm labor contractors (FLCs), an H-2A Surety Bond guarantees their compliance with state and federal regulations to protect migrant workers (foreign nationals) from harmful situations and exploitation in performing seasonal agricultural labor.

Janitorial Service Bond

For cleaning companies that have employees working in clients’ homes or businesses, this optional surety bond protects clients from employee theft.

License and Permit Bond

For businesses that require licenses or permits, this sub-category of commercial surety bonds covers a wide range of industries and business types.

Lost Title Bond

For vehicle owners who have lost their original vehicle title, this surety bond is often required when obtaining a replacement.

Lottery Bond

For businesses that sell lottery tickets, this surety bond helps to guarantee compliance with state lottery ticket sales regulations.

Marijuana Surety Bonds

For medical marijuana and recreational marijuana dispensaries, cultivators, processors, and retailers, these surety bonds are required by some states and regulatory departments in order to operate marijuana establishments legally.

Public Official Bonds

For elected public officials, deputies, and subordinates, this type of surety bond ensures the faithful performance of official duties and indemnification resulting from financial losses caused by a public official's misconduct or dishonesty.

Sales Tax Bond

For businesses in some states, this surety bond may be required to guarantee the proper payment of all sales taxes.

Taxable Fuel Bond

For taxable fuel registrants, this surety bond is required by Federal Tax Regulations to ensure all taxes are paid in full and on time.

Utility Bonds

For utility companies with clients who consume large amounts of energy, this surety bond assures the timely and full payment of their utility bills.

Warehouse Bond

For warehouse owners and operators, this type of commercial surety bond ensures that the goods and other materials stored in a warehouse facility will be stored in a safe manner and dispatched on presentation of a receipt.

Wine Surety Bond

For operators of Wine Cellars, Wineries, or Wine Warehouses, this surety bond serves as an assurance that the excise tax imposed by the Internal Revenue Code of 1986 on wines produced and received will be paid on time and in full.

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