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License and Permit Bonds

In order to comply with federal, state or municipal ordinances or regulations, License and Permit bonds may be required as a condition to obtain permits or licenses necessary to engage in a particular business or exercise a particular privilege. These bonds guarantee that the person or company seeking the license or permit is able to do what the license or permit states; will comply with all laws, regulations and codes related to the project or action; and – in some cases – will be liable if a third party is injured or sustains damage due to the project or action.

Examples of license and permit bonds include performance and payment bonds, customs bonds, tax bonds, warehouse bonds, auto dealer bonds, mortgage lender bonds, mortgage broker bonds and contractor license bonds.