Chances Bonding Services

What is a License and Permit Bond

This article is for all those who want to fully understand the concept and application of licenses and permit bonds.

What is a License and Permit Bond?

License and permit bonds protect consumers from harm by ensuring that firms will obey laws and other rules maintained by federal, state, and local government authorities. Each licensing bond is specific to a business and protects against potential harm to the state or consumers. License bonds shield government entities and customers from the bonded company’s dishonest practices. Before they are allowed to operate, businesses in various sectors must obtain licenses and issue surety bonds.

How Do License And Permit Bonds Work?

All license and permit bonds involve three parties:

  • The principal
  • The obligee
  • The surety

Unlike small business insurance plans, which pay claims to the policyholder, license and permit bonds do not. Instead, you can pay bond claims to the client or regulatory body that requested the bond.
The insurance provider will pay if your firm violates bond requirements or other conditions. The insurance firm will eventually receive payment from your company for this amount.

Who May Need License and Permit Bonds?

Depending on the state you want to start your business, the type of business you wish to operate, and the scale you want to run, you may or may not need a license and a permit bond. Many organizations require a license or permit from a government agency to perform particular tasks, including road construction or maintenance. A business may need to pay for a license or permit bond before it can expand.

Contact Us To Apply For License And Permit Bonds In Virginia

We are Virginia’s largest and most trusted surety bond firm. All business owners and contractors can contact us to obtain the necessary license and permit bond. You can trust us to ensure you have the correct surety bond for your company. Regardless of your credit history, whether you are a contractor, collection agency, or vehicle dealership, we can help.
To apply, visit our website or contact us today.