Surety bonds
Surety bond
A three-party guarantee. The state requires the bond, the business buys it from a surety, and the state can claim against it if the business harms the public.
A surety bond is a three-party guarantee in which a surety backs your promise to follow the rules of a licensed activity, protecting the public if you do not. It is a common condition attached to a state license.
Unlike insurance that protects you, a bond protects the people you serve and the state. If the surety pays a valid claim, you reimburse it, so a clean record and sound finances keep both your premium and your renewals straightforward.
Related terms
Where this comes up
Surety 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.