License and Permit Bond Guide 

License and permit bonds are required for business owners in many industries before they can receive a license or permit for certain types of work. The terms “license bond” and “permit bond” are used interchangeably.

How Do License and Permit Bonds Work?

A license and permit bond is a type of surety bond that protects consumers from harm by guaranteeing businesses adhere to regulations enforced by federal, state and local government agencies. 

License bonds offer protection to governments and consumers from fraudulent business practices. Each bond is distinct to a particular industry and protects consumers or the state from potential damages. Many professionals are required to obtain a license and permit surety bond before doing business in their line of work.

Why Get Your Bond From SuretyBonds.com?

SuretyBonds.com is legally licensed to issue license and permit surety bonds in all 50 states. As the nation’s top surety provider, we offer the best service, fastest delivery and most affordable permit bond prices in the industry.

How Much Do License and Permit Bonds Cost?

Many license and permit surety bonds are issued instantly at a set price of just 1% of the total bond amount. That means if your required license bond amount is $10,000, you may only need to pay a $100 premium.

However, some permit bonds require underwriting. Approval and pricing for underwritten bonds will depend on your personal financial history — primarily credit score. 

When you work with SuretyBonds.com, we’ll use our nationwide network to find you the best price on the market. Apply for a free quote now! 

Can I Get a License Bond With Bad Credit?

Yes — many license bonds are issued without a credit check. And, you can likely get an underwritten license bond with bad credit; the premium will simply be higher. Contact us today to see if you qualify for the license and permit bond you need. 

Types of License and Permit Surety Bonds

Airline Reporting Bond

• Airline reporting commission (ARC) bonds guarantee payments accepted by travel agents are sent to the proper airlines.

Appraisal Management Company Bond

• Appraisal management company (AMC) bonds ensure AMC companies operate according to industry-specific laws.

Auctioneer Bond

• Auctioneer bonds protect consumers against the substitution of goods and misrepresentation of auction items.

Auto Dealer Bond

• Auto dealer bonds protect car dealership customers from fraud and other wrongful actions. Almost every state requires new and used auto dealers to be bonded.

Car Wash Bond

• California state and New York City require car wash owners to purchase surety bonds holding them accountable for proper business operations and employee payment.

Collection Agency Bond

• A collection agency bond ensures business professionals perform their jobs according to industry regulations and is typically a licensing requirement.

Contractor License Bond

• Construction professionals in most states must purchase a contractor license bond to protect government agencies from financial loss at the hands of contractors.

Credit Service Organization Bond

• A credit service organization (CSO) bond ensures a CSO is operating ethically and according to licensing laws and industry regulations.

Debt Management Services Provider Bond

• Debt management services providers in some states need a surety bond to protect their consumers from unfair or deceptive practices.

DMEPOS Bond

• Suppliers of durable medical equipment, prosthetics, orthotics and supplies (DMEPOS) must post a surety bond before being approved to bill Medicare.

Energy Broker Bond

• An energy broker bond is required for individuals using competitive rates to encourage clients to switch energy providers in most states.

Federal Maritime Commission (FMC-48) Bond

• Ocean freight forwarders and NVOCCs are required to purchase an FMC-48 bond as proof of financial security for ocean transportation services.

Freight Broker Bond (BMC-84)

• The FMCSA requires all freight brokers and forwarders to post a $75,000 bond to protect from fraud and failure to pay motor carriers or shippers.

Health Club Bond

• These bonds are used to refund prepaid membership fees if a gym goes out of business and is a licensing requirement for health club owners.

Hunting and Fishing License Bond

• Businesses that sell hunting and fishing licenses must file a surety bond to shield buyers from potential fraud and illegal practices.

Immigration Consultant Bond

• Select states require surety bonds as part of the immigration consulting licensing application process to mitigate unlawful acts by consultants. 

Insurance Adjuster Bond

• Insurance adjuster bonds are required for insurance adjuster licensing in many states to protect the state and its residents.

Insurance Broker Bond

• Insurance broker bonds certify insurance professionals perform their sales practices according to city and state laws.

Investment Advisor Bond

• These bonds ensure that registered investment advisors follow applicable state laws and codes of conduct.

MMA Promoter Bond

• Professional sports promoters are required to file an MMA promoter bond before promoting events in their state.

Money Transmitter Bond

• Money transmitter bonds are important for online retailers who accept credit card payments as well as wire transfer companies.

Mortgage License Bond

• Mortgage professionals in several states must purchase a mortgage license bond before they can be legally licensed to work.

Notary Bond

• Notary bonds guarantee a notary will complete tasks ethically and legally. If a notary acts wrongfully, the state or the harmed party can file a claim to recoup their losses.

Outdoor Advertising Bond

• This bond is required in several states for those who construct billboards. It ensures advertisers adhere to laws regarding the placement and construction of these signs.

Payday Loan Bond

• A payday loan bond protects consumers from criminal behavior by payday loan brokers and other small lending companies.

Patient Trust Bond

• Nursing homes and assisted living facilities need surety bonds to guarantee a patient’s trust funds are managed appropriately. 

Pawnbroker Bond

• Pawn shops in some states require bonding to protect client property being held as collateral.

Pharmacy Bond

• A pharmacy bond refrains businesses from mismanaging drug shipments and sales and is a licensing requirement in many states.

Preneed Funeral Bond

• Preneed funeral bonds hold funeral homes accountable for misappropriated funds and contract breaches. They also protect the public if a home goes out of business.

Private Investigator Bond

• A bond is often part of the licensing process for private investigators and detectives to hold them responsible for following relevant rules and regulations.

Private School Bond

• If a private school unexpectedly closes, this bond guarantees students and parents will receive reimbursement for prepaid tuition.

Process Server Bond

• Process server bonds protect individuals if a process server causes damages to a plaintiff by improperly handling, delivering or filing court documents.

Professional Employment Organization (PEO) Bond

• PEO bonds provide financial security and reinforce the operational certainty of PEOs, which function as outsourced HR departments.

Professional Fundraiser Bond

• Professional solicitor or fundraiser bonds guarantee proper management of funds raised by charitable organizations.

Real Estate Broker Bond

• Real estate broker bonds guarantee that money and property turned over to a real estate agent or broker are accounted for honestly. 

Security Guard Bond

• Security guards in several states must file a surety bond to gain their professional license.

Surplus Lines Broker Bond

• A surplus lines broker bond protects the consumer by ensuring brokers are accurately reporting all amounts collected.

Talent Agency Bond

• Individuals and businesses who manage clients in the entertainment industry are required to get a talent agency bond in states including California and Florida.

Telemarketing Bond

• Telemarketing bonds protect consumers and the government against companies that ignore or break phone solicitation laws.

Title Agency Bond

• A bonded title agent pledges to issue titles, prepare documents and perform other responsibilities according to the law.

Travel Agency Bond

• Travel agents often require bonding because they handle large amounts of money needing to be forwarded to travel service providers.

How to Get a License and Permit Bond

Ready to apply for your bond? Simply call 1 (800) 308-4358 or apply online for the license and permit bond you need. A surety specialist will contact you right away to provide a quote at the lowest rate available.