Archive for the ‘License Permit Bond’ Category

role of license bonds for assured performance

Tuesday, June 16th, 2009

License and permit bonds are issued as per the obligation of the government in order to ensure an assured performance and to carry on the business legally. License bond is issued all over the planet and it has been issued to someone who engages in the activity of business in the state. These bonds are now issued in all part of the world so as to satisfy the requirements of the customer officially and meet their requirements without any default act. Permit bonds are issued to the candidate of license and permit from the state as per the statute and the ordinance of the state.

These bonds have to be received from the licensing department or from any other divisions of the state. As the applicant of any state applies for these bonds in the state, he has to acquire it from the state from where he requires. Nowadays, these bonds have been issued by all the states as per the statute and ordinance issued by the state. All license and permit bonds have been issued by every surety bond company to assist the customers of the state.

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How many license bonds are there?

Tuesday, May 26th, 2009

What is a License and permit bond ?

License and permit bonds are considered  surety bonds. A  municipality will require certain business or individuals to obtain these surety bonds. Theses bonds are required  in order to guarantee that the principal will carrier out their duties, laws as well as anything else that is in the bond form.  If the principal breaches the contract stipulated in the surety bond form and a  bond claim occurs the surety will reimburse the  obligee and than collect the funds from the principal.

How is a Surety bond underwritten ?

Surety license bonds are underwritten just like any other surety bond. The Surety will review your credit, personal financials as well as your business financials to determine surety credit.

How many license bonds are there, and who requires them?

It is  almost impossible to count how many license bonds are out there.  Each city has their own license bond requirements for certain business industries as well as individuals. A city can determine by their on accord if they want someone or business to 0btain a surety bond.  For instance the city of South Houston requires car dealers to obtain a $25,000 surety bond to sell cars even though there is already a bond requirement from the state.

Some cites require license and permit bonds to remodel your home or easements on your property. License bonds can also be required from the state as well.  Some of the most common license bonds required by the state are contractor license bonds.

The federal government also requires license bonds such as a ICC bond. If you are going to provide  construction services for the federal government they will require that you are bonded with the state and carrier your contractor license.  The other bond that they will require is a payment and performance bonds.

You can find out more about payment and performance bonds as well as other surety bonds on our surety bond blog

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Do Not Call Surety Bond

Tuesday, May 19th, 2009

This do not call surety bond is also surety bond which is required by the state and federal government. This surety bond is imposed by the government in order to maintain the rules and regulation by the principal. It guarantees the services provided by the telephone solicitor. In this surety bond each have their separate surety bond form. The principal is also required to provide a separate surety bond form. For each surety bond the amount of surety will differ. You should be alert, while mentioning the amount in the surety bond application. If the contractor fails; this bond guarantees refund or reimbursement of the contract money. Sometimes this bond is also called as telemarketing bond. The claim can be covered, when there is delay in the services or the wrongful act of the principal as per the state law.

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Different License Surety Bonds

Monday, May 4th, 2009

There are quite a few Different types of License Surety Bonds keep in mind that there are all considered surety bonds.

Surety bonds are an unsecured loan required by the government usually coinciding with a license like a contractor needing to become license and bonded. A surety bond is not a like insurance policy that will protect the business that is bonded but a reverse insurance policy that will protect depending on the bond form, but protect the customer transaction business with the bonded business.
Surety Bonded businesses help establish confidence to the consumer that they can be rest assured that if the contractor defaults they will have a easy vehicle to deal with to recoup their losses.

The surety is anticipating in the next few years that will be a higher demand for surety bonds as well as new surety bond requirements. The newest surety bond requirement this year has been the $50,000 Medicaid bond for suppliers. Currently in a few states the DMV is talking about raising some of their surety bond requirements for Car dealers these bonds are classified as a MVD bond. We will keep you posted with any changes
We have great programs for Car dealers as well as contractors. Whether you are a new business starting out or an established firm we can help you. We have programs and sources for clients that may have suffered credit issues in these tough times. So if you have an offer for a bond with collateral gives us a call so we can help you out.

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Know about License permit Surety bonds

Monday, April 27th, 2009

License and permit bonds are required by municipal ordinance, state law, or by regulation and in some instance by the federal government or its agencies. To get licensed, a contractor must have a surety bond and, a certain amount of insurance coverage. If the contractor can not obtain a surety bond written by a Surety company , in some  states, a cash deposit can be made and posted to the  State. The problem of posting collateral with the state is that the state may not return your cash collateral for 7 years or longer.

The purpose of a license bond is generally to safeguard the public from fraud or breach of contracts. These bonds can also benefit laborers, suppliers, and taxing authorities, as well as persons having contracts with the contractor.

The amount of the bond is the total limit of the Surety’s liability to all claimants combined together. Before stepping into a construction contract it is wise for an owner to call the licensing agency to be certain that the contractor is in good standing with the bond. Please check that all contractors should have general liability insurance as well, but one may only check the status of such insurance with state agencies in those states which require the insurance for licensing.

The contractor license bond should not be confused with a payment and performance bond

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