Role of License and Permit Bonds

  • This info-graphic titled ‘Role of License and Permit Bonds; provides us an overview of license and permit bonds. These are commercial sureties required for several licensing applications. Almost every business postulates for a license and permit bond to do business. These permit bonds are the ones that are required by most of the state, federal, or municipal governments as a prerequisite for obtaining the license or permit to engage in a business activity. These bonds are in a sub-category of insurance falling under commercialized bonding. These bonds are issued as per the requisite of the government to make certain about the guaranteed performance so that the operations can be carried out complying with fundamental statutes, state laws, and municipal regulatory protocol.

    This surety acts as a protection for consumers by giving a guarantee that the principal will abide by the terms of the license they have applied the bond for. Businesses should adhere to laws and other regulations which are put into effect by the government agencies. In order to be licensed, it’s obligatory for the contractor to have a bond and a certain amount of insurance amount in many states. This bond, nevertheless, can either be one written by a Surety organization or a cash deposit made with the states. The terms “license” and “permit” are used interchangeably and the main goal of this bond is to protect the public health, morals, and assure the safety of the citizens.For more information, please refer to the info-graphic below.