Understanding Business Services Bonds
How do I know if I need a business services bond?
Many companies require a business services bond (or sometimes better known as an employee dishonesty bond) before one can conduct business with them. Also, many states, cities, and counties require certain types of companies to maintain these fidelity bonds. You can check these individual states requirements by visiting your state's websites. Please see the "State Bond Regulations" page on this website to help you find the current requirements. If you can't find the answers you're looking for, contact one of our customer service representatives to help you complete your application.
What is the purpose of a business services bond?
Dishonest employees can severely impact your business. The business services bond protects your customers from losses incurred by dishonest acts of your employees.
What are the most common types of business services bonds available?
The most common types of business services bonds are Janitorial Service, Home Health Care Providers, Security Guards, and Temporary Employment Agencies.
How is a business services bond different than an insurance policy?
Unlike an insurance policy, the bond does not step in and pay losses for you. The bond guarantees that you will be able to pay any losses up to the face amount of the bond. The bond will only pay in your stead in the event that you are financially unable to meet your obligations.
My state allows me to post a letter of credit instead of a bond. What are the advantages of having a surety bond?
Obtaining a surety bond is generally the preferable method for meeting the state’s requirement for a financial guarantee of your performance. The surety company requires that those they bond have the financial resources to meet any the obligations that the bond guarantees, but it allows the licensee to have the unencumbered use of those resources as they engage in their business.
How do I apply for a business services license bond?
BusinessServicesBondCenter is the easiest and most affordable method to securing your bond. Let us show you how our streamlined process will reduce the cost and help you avoid the confusion. Click here to start the process: Apply Now