Commercial Surety Bonds

A commercial bond guarantees that the principal follows local statutes and laws. Commercial bonds are a general classification of bonds. Therefore, they play an essential role in supporting a business or professional in obtaining a license or permit. Yet, there are several types of surety bonds.

A government agency (including federal, state or local), usually requires that a business apply for a commercial bond.  Also, it is important to know, that a commercial bond must be renewed every year, for the initial term.  Finally, a bond may need a specified expiration date and alignment with the calendar year.

Commercial bonds play a crucial role for protecting the public.  This is because government agencies need these bonds to keep the public safe from consumer fraud, failure to complete a project or unethical practices.

• Alcohol Bonds
• Attachment Bonds
• Auto Dealer Bonds
• Crypto Money Transmitter Bonds
• DMEPOS Bonds
• DMEPOS Bid Bonds
• Electrical Vehicle (EV) Charging Station Performance Bonds
• ERISA Bonds
• Express Script Bonds
• Fidelity Bonds
• Janitorial Bonds
• Lottery Bonds
• Marijuana Bonds
• Paid Family Medical Leave (PFML) Bonds
• Power Purchase Agreements
• Probate & Fiduciary Bonds
• Sales Tax Bonds
• Solar Power Performance Bonds
• School Bus Bonds
• Tobacco Bonds
• Utility Bonds

In authorizing a solar power performance bond, the surety is agreeing to extend credit to the principal to cover the cost of a claim if the principal is unable to pay it immediately. That carries the risk of not being repaid by the principal and having to take legal action to secure repayment.

Consequently, the premium rate a given solar contractor will pay depends largely on how creditworthy the underwriters find the principal to be. The biggest factor is the principal’s personal credit score. With good credit, the principal should be eligible for a premium rate that’s in the range of 1-3% of the bond amount. The annual premium for a solar power performance bond is calculated by multiplying the required bond amount by that percentage.