License & Permit Bonds

License and permit bonds are a sub-category of commercial bonds, which deal specifically with obtaining licensing and permitting to conduct business. License and permit bonds can be used for a wide range of industries and business models.


Simply put, license and permit bonds guarantee that businesses who are required to have a specific license to conduct business will follow all laws and regulations. 

license and permit bonds


License and permit bonds are designed to protect the general public, by holding businesses accountable to the government agency that supplies its license or permit. These government agencies uphold the federal, state, and local laws and regulations surrounding the specific industry.

If a business breaks the rules outlined in their licensing or permitting agreement, claims can be filed against the business’s license and permit bond.

While thousands of unique license and permit bonds exist, here are some of the most common types of license and permit bonds:

Appraisal Management Company Bond

For appraisal management companies, this surety bond requires that they operate according to the law.

Auctioneer Bond

For auctioneers, this surety bond may be required by the state prior to being legally licensed.

Auto Dealer Bond

For auto dealers operating anywhere except Ohio and Vermont, this surety bond will be required before being able to sell vehicles to the general public.

Cannabis Bond

For medical marijuana and recreational marijuana dispensaries, cultivators, processors, and retailers, these surety bonds are required by some states as part of the licensing requirements to conduct business in a lawful manner.

Collection Agency Bond

For collection agency owners, this surety bond may be required by the state before the company can be legally licensed to collect outstanding debts.

Contractor License Bond

For construction professionals, this surety bond is required in most states in order to build, repair, or renovate any public or private structure.

DMEPOS Bond

For suppliers of durable medical equipment, prosthetics, orthotics, and other related materials, this surety bond is required before the company is able to bill Medicare.

Energy Broker Bond

For energy broker businesses, this surety bond is often required prior to being able to encourage customers to switch energy providers based on competitive rates and other factors.

Federal Maritime Commission (BMC-48) Bond

For ocean transportation intermediaries, this surety bond is required by the Federal Maritime Commission as proof of financial security.

Freight Broker Bond

For freight brokers, this surety bond is often required at a minimum of $75,000 to ensure that the company operates in line with the agreements and regulations outlined by their motor carriers and shippers.

Fishing License Bond

For businesses that sell fishing licenses, this surety bond guarantees that the company will adhere to the proper regulations, including the timely payment of taxes and fees.

Health Club Bond

For health clubs, this surety bond guarantees membership fee reimbursement to customers if the company unexpectedly closes or becomes unusable.

Hunting License Bond

For businesses that sell hunting licenses, this surety bond is required by most states before being legally permitted to sell licenses.

Insurance Broker Bond

For insurance brokers, this surety bond is designed by government agencies to protect the general public against predatory sales practices and other unethical behaviors.

Marijuana Surety Bonds

For medical marijuana and recreational marijuana dispensaries, cultivators, processors, and retailers, these surety bonds are required by some states as part of the licensing requirements to conduct business in a lawful manner.

Medicaid Bond

For healthcare providers that bill to Medicaid, this surety bond ensures that providers keep accurate records, bill correctly, and handle funds properly.

MMA Promoter Bond

For professional sports promoters specific to an MMA fighter or event, this surety bond is often required prior to being licensed by some states.

Money Transmitter Bond

For money transmitter companies, this surety bond must be purchased before the company can be licensed to provide money transfer services or payment instruments.

Mortgage Broker Bond

For mortgage brokers, lenders, servicers, and originators, this surety bond protects clients and is required by most states.

Notary Bond

For notary public businesses, this surety bond ensures the professional will follow the regulations surrounding notarizing documents.

Outdoor Advertising Bond

For outdoor advertising companies, this surety bond must be purchased in some states before the company is able to install signage.

Payday Loan Bond

For payday loan companies, this surety bond guarantees fair lending practices when issuing loans to the general public.

Patient Trust Bond

For nursing homes and assisted living facilities, this surety bond ensures that the business and its employees will handle patients’ funds and property appropriately.

Preneed Funeral Bond

For funeral homes, this bond assures that the funeral home is compliant to all applicable laws and regulations and will follow through on all agreements.

Private School Bond

For private schools, this surety bond guarantees reimbursement of tuition and other financial recourses if the school closes.

PEO Bond

For professional employment organizations, this surety bond is designed to reduce fraud and other instances of malpractice within the industry.

Surplus Lines Broker Bond

For surplus lines brokers, this surety bond is often required prior to being able to place coverage with non-admitted insurers in a state.

Telemarketing Bond

For telemarketing companies, this surety bond ensures compliance to non-harassment and other industry regulations and laws.

Title Agency Bond

For title agencies, this surety bond is required before the company is able to get licensed to search real estate records to determine the legal ownership of properties and find any outstanding financial implications that need to be settled before the property can be sold.

Travel Agency Bond

For travel agencies, this surety bond protects clients by ensuring the company will handle their funds properly to purchase elements of the itinerary and other agreed upon costs.

Used Car Dealer Bond

For used car dealers, this surety bond is often required in addition to the auto dealer bond to assure clients that the company is following all laws and regulations related to used car sales.

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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