Surety bonds
License and permit bond
A surety bond a government agency requires before it issues a license or permit, guaranteeing the licensee follows the law governing the activity.
A license and permit bond is the surety bond a government requires as a condition of issuing a license or permit. It guarantees that the holder will follow the laws governing the licensed activity.
It sits in a different family from contract bonds, which guarantee construction performance. For most regulated businesses, the bond attached to a license is a license and permit bond, sized by the state.
Related terms
Where this comes up
License and permit bond is one piece of getting and keeping a business licensed. We handle the filings, bonds, and renewals that surround it across every state where you operate.