IMPORTANT SURETY BONDS TYPES
Almost any contract or obligation can be bonded. There are many Surety Bond Types …
Surety Bonds Types – These bonds are used in a variety of cases, such as a requirement for licensing, or for obtaining construction contracts. Their purpose is to provide additional safety in the name of the bonded entity. In all of these situations, the surety bond represents a three-party contractual agreement. The obligee is the entity that requires the posting of the bond. Often this is a local or state authority. The principal is your business, which needs to get bonded. The surety is the party that provides the security backing.
Below is a list of the major categories of Southern California Surety Bond Types, with a brief inclusion of the most popular types of bonds falling within each category. You might be surprised to learn that thousands of individual surety bond types exist. So if you don’t see the bond type you’re looking for or if not sure of the type of bond you need, call us at (888)-778-7389! Our surety bond experts are here to help you.
SOUTHERN CALIFORNIA SURETY BOND TYPES
CONTRACT BOND
A Southern California Contract Bond is a type of surety bond that guarantees contracts are fulfilled. … If the contracted party fails to fulfill its duties according to the bond’s terms, the project developer can make a claim on the bond to recover financial losses.
A Southern California Construction Bond is a type of surety bond used by investors in construction projects. The bond protects against disruptions or financial loss due to a contractor’s failure to complete a project or failure to meet project specifications.
COURT BOND (Judicial)
Includes Bail Bonds, Replevin Bond, Release Attachment Bonds, Injunction Bonds, and Appeal Bonds
A California Judicial Bond is a type of court bond that guarantees court costs are secured. … If an opposing party incurs damages as a result of the special privilege granted and the court later determines the privilege was unjustified, a judicial bond guarantees that the obligee will be made whole.
COURT BOND (Probate)
Includes Guardianship Bonds, Trustee Bonds, Executor Bonds, and Conservatorship Bonds
The purpose of a Southern California Probate Bond is to protect the beneficiaries or creditors of the estate from harm caused by the malfeasance or negligence of the executor or administrator. In California, a probate court bond is issued to administrators, executors, conservators and guardians in probate estates.
LICENSE AND PERMIT BOND
Includes Contractor License Bonds, MVD Bonds, Mortgage Broker Bonds, Tax Bonds, and Athletic Promoter Bonds
Required by a municipality or other public body as a condition to granting a license or permit to engage in a specified activity, this bond guarantees that the party seeking the license or permit (the obligor) will comply with applicable laws or regulations. These bonds can also be structured to provide indemnity guarantees to third parties who sustain injury or damage as a result of the obligor’s activities as described in the license or permit when such a guarantee is required. For example, businesses that hang signs over public sidewalks may be required to provide indemnity guarantees for injuries to pedestrians.
PUBLIC OFFICAL BOND
Includes Notary Bonds, Secretary of State Bond, Court Clerks Bonds, Deputy Bonds, Mayor Bonds, and Commissioner Bonds
A California public official surety bond provides a financial guarantee against loss that the official duties of an office will be faithfully performed according to the law during a specific term of a specified office.
FIDELITY BOND
Includes EmployeeDishonesty Bonds, ERISA Bonds, Business Service Bonds, Janitorial Bond, and Commercial Crime Bonds
A California fidelity bond is a form of business insurance that offers an employer protection against losses that are caused by its employees’ fraudulent or dishonest actions.
MISCELLANEOUS BOND
Includes Lost Instrument Bonds, Lost Title Bonds, Lottery Bonds, Car Wash Bonds, Passeneger Carrier Bonds, and Dog Bite Bonds, to name a few.
California Miscellaneous Surety Bonds generally are described as any private or public bond not readily classified under the other bond types. These bonds are vast in their scope and are often broad coverages whose risk factors and obligations are only defined and ascertained within the underlying obligation being bonded. Quite often, the real obligation being bonded is the compliance to the underlying agreement and in the event of failure to comply, the payment of money to compensate for recouping of losses, or as a penalty for default.
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