Commercial Bonds

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Bond & License Services for Businesses

Whether their business is big or small, business owners often face many of the same challenges, but one requirement unique to some businesses is a commercial bond. Commercial bonds protect someone else’s property against your own potential misdeeds and are considered protection for your clients.

Ensuring that your clients are happy and that your business is doing satisfactory work is important. Contact King Insurance Partners today to determine what kind of commercial bond your business needs, and receive a free, no-obligation quote.

Our business solution services include:

  • Performance Bonds
  • Contractor’s Bonds
  • ERISA Bonds
  • Fiduciary Bonds
  • Subdivision Bonds
  • Court Bonds
  • Conservator Bonds
  • Surety Bonds
  • Fidelity Bonds
  • Public Officials
  • Liquor Licenses

If you need a bond or license, contact a bond specialist at King Insurance Partners today who can help you find the surety products that keep your business covered.

woman giving presentation in business meeting

What Is A Commercial Bond?

Commercial bonds, also called business bonds and commercial surety bonds, are agreements that protect businesses. They are similar to insurance as they both compensate you for a loss but differ in regards to what types of loss they cover. For example, insurance protects your property, whereas commercial bonds insure someone else’s property. Many industries are required by law to purchase specific surety bonds to ensure that the business or individual will comply with their legal obligations.

Why Do I Need Commercial Bond Insurance?

You may need commercial bond insurance because cities, counties, or local governments often require bonds, or simply that your customer requires you to based on your industry. Commercial bonds can also protect things that general liability insurance doesn’t. In addition, these bonds act in good faith, meaning that they are able to assure customers that they will get what they paid for.

Types Of Commercial Bonds

While surety bonds and fidelity bonds are the two most common types of commercial bonds, there are others that you might need depending on what type of business you own.

Surety Bonds

Surety bonds are legally binding contracts that ensure all obligations are met, including compensation, if a business fails to meet these obligations. There are three parties involved in a surety bond: the principal, the obligee, and the surety. The surety is typically an insurance company that ensures the principal can fulfill their obligations. The obligee is the person who needs a guarantee of the principal’s ability.


Employment Retirement Income Security Act (ERISA) bonds are used to protect employee benefit plans in the event of fraud, dishonesty, or other criminal behavior. Employee benefit plans are often required to be covered by an ERISA bond, and while it is thought of as a type of insurance, it only covers up to a predetermined payout amount.

Performance Bonds

performance bond is usually issued by an insurance company and is used to ensure that a project will be completed satisfactorily. Performance bonds also may require collateral property or investments to back up the surety agency’s requirements.

Contractor Bonds

Contractor bonds are required for those interested in becoming licensed construction contractors. Under this type of bond, the contractor will agree to complete the work under specific regulations, and if they fail to do so, the obligee can file a claim against the bond to recover any damages.

Fiduciary Bonds

A fiduciary bond, also called a probate bond, is used when one party takes control of another’s assets or interests, usually after they can no longer handle their finances. Claims against a fiduciary bond typically occur when a fiduciary acts unethically, commits fraud, or embezzles the financial assets they’re responsible for.

Fidelity Bonds

fidelity bond is used to protect businesses against employees’ dishonest or fraudulent actions, such as theft or forgery. This type of bond might be required based on the type of business or industry and can help protect clients and customers against employee dishonesty. These are often used as part of risk management strategies.

Court Bonds

Judicial bonds, or court bonds, are used to protect an individual from potential losses from a court decision during civil proceedings. There are two types of court bonds. Defendant bonds prevent a plaintiff from pursuing the satisfaction of a claim while the defendant may regain control over contested property or postpone a legal order affecting property rights. Plaintiff bonds guarantee the defendant’s protection if the plaintiff loses in a civil proceeding.

Subdivision Bonds

subdivision bond is a construction surety bond that helps assure a city, county, or state that a subdivision project is appropriately financed and will be completed to meet mandatory public improvements. Generally, subdivision bonds apply to the new construction of buildings, curbs, drainage systems, gutters, sewers, sidewalks, and streets.

Conservator Bonds

conservator bond is used when a conservator is appointed to handle the financial affairs of a minor or incapacitated adult. This is usually required when the sole purpose of certain assets is the care and well-being of the conservatee, and the bond aims to prevent mismanagement of their assets.

Public Officials

Public official bonds allow public officials to show the general public that their services are trustworthy. Public officials are often required by law to be bonded as they handle money and sensitive private information. If an unethical service occurs, an affected citizen can file a claim against the bond to recover their damages.

Liquor Licenses

liquor license bond must be posted to be licensed to manufacture, distribute, or sell certain alcohol products. It ensures that these places of business follow all laws, regulations, and statutes dictated by their license, including payment of all alcohol taxes. The liquor license bond needs to be maintained to continue business operations.

Our Experienced Insurance Agents

If you are interested in learning more about commercial bonds and available business insurance policies, contact our insurance agency to speak to one of our experienced insurance agents!

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