An Insight into Different Types of Commercial Surety Bonds
This info-graphic entitled An Insight into Different Types ofCommercial Surety Bondsprovides us an overview of commercial sureties. Bonds are often required for acquiring professional license from a federal, state, or local federal agency. A commercial bond is simply any bond obligatory of a commercial business, from a car franchise to a general contractor. Considering that 22% of all employed people in 2015 needed a license reported by the Bureau of Labor Statistics, a large number of group will need bonds as well.
Bond requirements exist to protect the public from businesses that interrupt the law. If and when this goes on, an individual can interact with the obligee to file a claim. If investigators find out the claim is valid, the individual can roll up compensation from the surety, up to the total penalty of the surety. After paying, the surety will attempt to accumulate the amount of the claim from the principal. If the principal refuses to pay or has many claims filed against it, the surety has the right to call off the bond, potentially invalidating your business license. For more information, please refer to the info graphic below.
