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Home > Sign License Bond

Sign License Bond

Apply for a Bond

Looking for a bond? Apply today by clicking on the link below.

Apply For A Bond

Sign License Bond Information

If you are asked to sign a license bond you are entering into a legally binding contract with local government authorities to ensure that you are following all procedures and laws that provide safety for all concerned and that proper business practices are in use at all times.

When you apply to receive a new business license, in most cases, you will be required to have a bond in place prior to being able to commence operations in your location.

The bond agreement is set up between three parties, the licensee, the bond broker and the local government agencies that represent the consumer, known as the principal, surety and obligee respectively.

There are many different businesses that require bonds to be in place before being able to open your business including motor vehicle dealerships, contractors such as plumbers or electricians, importers, insurance agents and the list goes on.

Bonds are required by law in a lot of states for a wide variety of occupations. The licence bonds protect your consumers from any acts of fraud that may be alleged throughout the term of your business. Your bond broker will investigate any claims that may be made against your bond for legitimacy before deciding whether or not it is a valid and returning to the customer a sum of money to compensate for any financial loss that they may have suffered through the negligence or malpractice of you or your employees.

You will need to have a bond policy for the entirety of the time that you hold a license to work in your field. Most bonds are payable as an annual fee, which is a very small percentage of the total amount of cover the policy offers.

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