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License & Permit Bonds

What is a License & Permit Bond?

License & permit bonds are a type of commercial surety bonds that business owners are required to purchase before they can be issued a license or permit for certain types of work. Common across a broad range of industries, the license bond provides monetary restitution to a consumer or government agency for harm caused by a business that has violated a law or regulation. Essentially, the bond assures the public that the business is legitimate and trustworthy. 

Common License & Permit Bonds

  • Administrator Bond
  • City Ordinance Compliance Bond
  • Contractor’s License Bond
  • Fidelity Bond
  • Sales and Use Tax Bond
  • Small Business Loan Bond


Start your application and get bonded today! We offer fast approvals, great rates, and a straightforward process. Not sure where to begin? Our surety bond experts are ready to help you get the right bond at the best price.

There are hundreds of different bonds for all kinds of purposes—but regardless the industry or project—they all operate essentially the same way. A surety bond guarantees that you will operate professionally and if you break the rules, a claim can be made on your bond which you’re responsible to pay.

It’s a guarantee that you will complete the work and fulfill your contractual obligations. Think of it as insurance for the public, not your business.

For most bonds, you can get instantly approved and print bonds at your home or office. However, we do not offer instant approvals for a select number of bonds, as the underwriting process generally involves a more extensive review of the applicant.

The entity requiring the bond (the obligee) will determine whether a bond is required. Bond requirements vary greatly by your occupation and location. However, fidelity bonds are insurance and are usually optional to obtain.

For the most part, yes. Bad credit can increase rates for license and permit bonds and most can also get approved for fidelity bonds regardless of credit. For contract bonds, larger contractors with poor credit can be approved with strong CPA-prepared business financials.

It’s a legally binding contract that you must sign to obtain a surety bond. The agreement guarantees that if you cause bond claims you will pay them in full.

You must fulfill the terms of the bond obligations, which vary immensely depending on bond type. Where you obtain your surety bond is important when it comes to understanding claims and avoiding them entirely. If you have any questions about what your bond does or doesn’t guarantee, reach out to our experts to help guide you along the way.

license & permit Bond Resources

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