Other Commercial Bonds

If You Need a Bond That Does Not Fit a Standard Category, We Can Still Help

The most common commercial surety bonds, such as license bonds, auto dealer bonds, freight broker bonds, notary bonds, and ERISA bonds, each have their own dedicated page on our site. But the world of commercial surety extends far beyond those categories.

Courts require bonds. Government agencies require bonds from public officials. Utilities accept bonds in place of cash deposits. Contracts between private parties sometimes require performance guarantees outside of the construction context. If someone is asking you for a surety bond and it does not fit neatly into one of the categories above, it almost certainly falls into one of the types described on this page.

At Grit Insurance Group, we have access to surety markets that write the full range of commercial bonds across all 50 states. If you need a bond, tell us what it is for, who is requiring it, and the amount. We will find the right market and get it placed.

Commercial Surety Bonds

What Is a Surety Bond? 

Court Bonds

Court bonds are surety bonds required by courts as part of legal proceedings. They guarantee that the bonded party will fulfill their obligations as ordered or appointed by the court. If they fail to do so, the court or the affected party can file a claim against the bond.

Court bonds fall into two main subcategories: fiduciary bonds and judicial bonds.

Fiduciary Bonds. A fiduciary bond is required when a court appoints someone to manage the assets or affairs of another person. The bond guarantees that the appointed fiduciary will handle those responsibilities honestly and in accordance with the court's instructions. Common fiduciary bonds include guardian bonds (required when a court appoints a guardian to manage the personal or financial affairs of a minor or incapacitated adult), executor and administrator bonds (required when a court appoints someone to manage and distribute the estate of a deceased person), trustee bonds (required when a court appoints a trustee to manage assets held in trust), and conservator bonds (required when a court appoints a conservator to manage the finances of someone who cannot manage them independently).

Judicial Bonds. A judicial bond is required in connection with court litigation. These bonds guarantee that a party in a lawsuit will fulfill certain obligations imposed by the court. Common judicial bonds include appeal bonds (also called supersedeas bonds, required when a party appeals a court judgment and wants to delay enforcement of the judgment during the appeal), attachment bonds (required when a plaintiff seeks to seize a defendant's property before a judgment is entered), replevin bonds (required when a party seeks to recover specific personal property that is in the possession of another party), and injunction bonds (required when a court issues a temporary restraining order or injunction, guaranteeing that the party requesting the injunction will pay damages if the injunction is later found to have been wrongly issued).

Court bonds can range from a few thousand dollars to millions, depending on the value of the estate, the judgment amount, or the assets involved. Underwriting for court bonds varies by type and amount. Smaller fiduciary bonds may be issued with a simple application, while large judicial bonds typically require detailed financial review.

Public Official Bonds

Public official bonds are required by law for certain elected or appointed government officials. The bond guarantees that the official will faithfully perform the duties of their office and will properly handle any public funds entrusted to them.

If the official fails to perform their duties or mishandles public funds, the government entity or the public can file a claim against the bond. Public official bonds protect taxpayers and the public from losses caused by dishonesty, negligence, or misconduct by officials who hold positions of trust.

Common positions that require public official bonds include treasurers, tax collectors, clerks of court, sheriffs, constables, judges (in some jurisdictions), and various other municipal and county officials. Requirements are set by state law and vary by jurisdiction and office.

Utility Deposit Bonds

A utility deposit bond is used in place of a cash deposit when establishing a new utility account. Instead of paying a large cash deposit to the utility company, the customer purchases a surety bond for a fraction of the deposit amount. The bond guarantees that the customer will pay their utility bills as agreed.

Utility deposit bonds are most commonly used by businesses that are opening new locations or establishing new commercial utility accounts. The cash deposit required by a utility company can tie up thousands of dollars in working capital. A utility deposit bond frees up that capital while still satisfying the utility's requirement.

If the customer fails to pay their utility bills, the utility company can file a claim against the bond. The surety pays the utility, and the customer is responsible for reimbursing the surety.

Warehouse Bonds

A warehouse bond is required of businesses that operate public warehouses and store goods belonging to others. The bond guarantees that the warehouse operator will properly care for stored goods and will release them to the rightful owner upon demand.

Warehouse bonds protect the owners of stored goods from losses caused by the warehouse operator's negligence, fraud, or failure to return the goods. They are commonly required by state law for grain elevators, public storage facilities, and other warehousing operations that hold third-party property.

Lost Instrument Bonds

A lost instrument bond (also called a lost document bond or lost securities bond) is required when a financial instrument, such as a stock certificate, bond certificate, check, money order, or promissory note, has been lost, stolen, or destroyed and the owner needs to obtain a replacement.

The issuing institution (bank, corporation, or government agency) requires the bond before issuing a replacement instrument. The bond protects the issuer from financial loss in the event that the original instrument is found and presented for payment by someone else.

Lost instrument bonds are typically issued for a bond amount equal to the face value of the lost instrument, and the premium is based on that amount. They are generally straightforward to obtain.

Mortgage Broker Bonds

Many states require mortgage brokers and loan originators to carry a surety bond as a condition of their license. Mortgage broker bonds guarantee that the broker will comply with state lending laws and regulations and will handle client funds properly.

Bond amounts vary by state. These bonds protect consumers from financial harm caused by a mortgage broker's violations of state law, such as fraudulent lending practices, misrepresentation of loan terms, or mishandling of escrow funds.

Other Miscellaneous Bonds

The categories listed above cover the most common types of commercial surety bonds outside of the standard license, dealer, freight, notary, and ERISA bonds. But there are dozens of other specialized bonds that may be required in specific industries or situations. These include title bonds (used to establish clear title to a vehicle or property when the original title is unavailable), health club bonds (required by some states to protect prepaid membership fees), contractor completion bonds (guaranteeing completion of non-construction obligations), immigration consultant bonds (required in some states for immigration consultants), and various state-specific and industry-specific bonds that arise from regulatory requirements unique to certain businesses or professions.

If you need a bond and you are not sure what type it is or where to get it, that is exactly the kind of question we answer every day. Call us, tell us who is requiring the bond and why, and we will figure out the rest.

How to Get a Commercial Bond You Cannot Find Elsewhere

If you have been searching for a specific type of bond and cannot find an agent or surety willing to write it, there are a few things to keep in mind.

Not every surety writes every type of bond. Some surety companies specialize in contract bonds, others in commercial bonds, and others in specific niches like court bonds or ERISA bonds. If one surety cannot help you, it does not mean the bond is unavailable. It means you need an agent with access to the right markets.

At Grit, we work with multiple surety companies across different specialties. When a bond request comes in that does not fit a standard mold, we know which markets to approach and how to present the request in a way that gets results.

Here is what to have ready when you call. The name and contact information of the entity requiring the bond. The type of bond being required (or a copy of the document that specifies the bond requirement). The required bond amount. The name and entity type of the party that needs to be bonded. Any relevant court orders, license applications, or regulatory documents.

The more information you can provide upfront, the faster we can match you with the right surety and get your bond issued.

 How Much Do Contractor Bonds Cost?

 What Credit Score Is Needed for a Surety Bond?