SFAA Promotes the Value of License Bonds as Federal and State Governments Explore Occupational Licensing Reform
A Government Leader's Guide to Bonds: Commercial Surety Bonds - Holding Businesses Accountable
Among other things, commercial surety bonds can be required for licensing and permitting companies to conduct business in a state or locality. Requiring commercial surety bonds as a condition of licensing or permitting protects consumers by giving public agencies added assurance that a company operating within their jurisdiction will comply with state and local laws and regulations.
Surety Bonds - An Integral Part of Consumer Protection
States require business entities and individuals to obtain a license or permit or register or obtain a certification from a regulatory agency to conduct a business or provide services in the state. These requirements largely are for consumer protection. Licenses, permits, registration and certification often are granted only after the business or individual posts a surety bond guaranteeing compliance with laws and regulations. In the surety industry, these bonds are referred to as “compliance bonds.”
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