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Organizations and businesses are often required by law to purchase a surety bond before being able to operate, including specialty trades, health clubs, liquor distributors, and auto dealers. License or permit bonds can be required by local cities, counties, or by the state.
A contract bond is a type of surety bond that guarantees a contractor will fulfill the terms of a construction contract. If the contractor fails to complete the work or meet the agreed standards, the bond compensates the project owner. Common types include bid bonds, which ensure a contractor honors their bid, and performance bonds, whic
A contract bond is a type of surety bond that guarantees a contractor will fulfill the terms of a construction contract. If the contractor fails to complete the work or meet the agreed standards, the bond compensates the project owner. Common types include bid bonds, which ensure a contractor honors their bid, and performance bonds, which guarantee the job is done correctly. Public construction projects often require contract bonds to protect taxpayers and ensure project completion
A fidelity bond is a type of insurance that protects businesses from employee theft or fraud. It covers losses like stolen money, property, or data. These bonds are common in industries where staff handle finances or work on client property. For example, cleaning services or payroll companies often carry fidelity bonds to build trust and meet client requirements.
Various agencies within the Federal Government of the United States require or accept specific surety bonds, including alcohol distributors, farm labor contractors, freight brokers, and more.
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