Most people have never heard of a surety bond, but if you’ve ever been required to post one, it’s probably because you’re in a business that requires some type of licensing. A surety bond is basically an insurance policy that protects the consumer from financial loss if you, the business owner, fail to uphold your end of the bargain. In other words, it’s a way for the government or another third party to hold you accountable for your actions.
There are all kinds of different surety bonds out there, but they all serve the same purpose. The amount of the bond will vary depending on the type of business you’re in and the state you’re operating in. For example, a surety bond for a contractor in Florida will likely be different than one for a contractor in California.
Surety bonds are typically issued by an insurance company, and the process of getting one can be fairly complicated. If you’re required to post a surety bond, your best bet is to talk to an insurance agent who can help guide you through the process.