Also known as business bonds and commercial surety bonds, commercial bonds are agreements that protect businesses. They’re generally required by state laws for various industries, and guarantee some aspect of a principal’s occupation. Learn more below about which type of business bond is right for you.

Types of commercial bonds

AG (agricultural) dealer bonds

Required for people licensed with the Department of Agriculture who buy and resell agriculture products. These bonds include grain dealer bonds, hay dealer bonds, livestock dealer bonds, milk dealer bonds and produce dealer bonds.

ARC bonds

These travel agent bonds are required by the Airlines Reporting Corporation. They guarantee that payments collected by a travel agency are forwarded to the right airline.

Auctioneer bonds

Required for auctioneers and auction houses to protect bids and purchases.

Auto dealer bonds

Motor vehicle dealer (MVD) bonds assure the general public that the dealer will comply with the law. Other dealer bonds include boat dealer bonds, mobile home dealer bonds, snowmobile dealer bonds and vessel dealer bonds.

Fuel tax bonds

Required by fuel sellers to guarantee payment of taxes.

License and permit bonds

Required by federal, state or municipal governments as a condition for granting a professional license to professionals in certain occupations or industries. License and permit bonds include contractor license bonds, electrician bonds, HVAC commercial bonds, non-resident license bonds and plumber bonds.

Liquor bonds

Guarantee compliance with federal and state laws pertaining to the sale, manufacturing and warehousing of alcohol.