Commercial & Surety Bonds
Commercial & Surety Bonds Explained
If you find that securing commercial bonds is a confusing aspect of doing business, don’t be too hard on yourself, it’s a complex financial niche that can stump even highly experienced insurance professionals. Some agencies don’t handle bonds at all.
At Gilbert’s Risk Solutions, we’ve made it our business to understand the ins and outs of bonds. Some of our multi-state clients require hundreds of bonds for every state and municipality they do business in. Whether you’re a large manufacturing enterprise, a mid-size contractor, or a local “Main Street” retailer, you’re likely to need some form of commercial bond.
While we’re proud to call Pennsylvania our home, we’ve helped businesses all across the country manage their risk, and we look forward to helping you too, no matter where you call home. We’re licensed and ready to serve in 49 of the 50 states.
Common Types of Commercial Bond Insurance
There are literally hundreds of types of bonds, which vary by location and industry sector. Common types include:
- Bid Bonds
- Performance & Payment Bonds
- Supply Bonds
- Maintenance Bonds
- License Bonds
- Permit Bonds
- Liquor Bonds
- Auto Dealer Bonds
- Judicial Bonds
- Fidelity Bonds
- ERISA Bonds
Let Us Help You Secure Your Commercial and Surety Bonds
Some bonds are statutory, required by federal, state, or local law. Others are required as a licensing mechanism for certain professions, required by business contracts, or simply an optional form of protection. Bonds are complex and contractual in nature – we understand them well and have a team of bond and contract experts who will work on your behalf.
Surety Bonds: Contracts
Contract Bonds are an everyday part of business in the construction industry, particularly on public projects. Common types include Bid Bonds, Performance & Payment Bonds, and Supply Bonds.
Surety Bonds: Commercial
Common commercial bonds include License and Permit Bonds – for example, an auto dealer might need a License Bond to do business, or a hospitality venue might require a Liquor Bond.
Fidelity Bonds
Sometimes called "employee dishonesty" bonds, these are designed to protect your organization should an employee intentionally or unintentionally cause harm. ERISA bonds are a mandatory type of fidelity bond required to protect employee benefit and retirement plans against fraud or dishonesty.
Our RISK SHIELD® Process
Most Fortune 500 companies have a full-time risk manager, but few small- to mid-size businesses can afford that luxury. With Gilbert’s Risk Solutions, you get a risk manager on your team through our proprietary RISK SHIELD® Process – proactive, diagnostic, and consultative, rather than just reactive insurance placement. We’ve been helping area businesses control their risks and protect their bottom lines for seven generations.
CONSULT
DESIGN
BUILDING
MAINTAIN
Commercial & Surety Bonds FAQs
Surety bonds are a broader category that includes commercial bonds – three-party agreements guaranteeing performance or compliance. Commercial bonds specifically cover licensing, permits, and business obligations.
Contractors, licensed professionals, auto dealers, and businesses handling public funds or contracts often need surety bonds as a condition of doing business.
Insurance protects you against your own losses. A surety bond protects a third party (like a client or government agency) by guaranteeing you'll fulfill your obligations – if you don't, you're required to repay the surety.
Cost typically ranges from 1-15% of the bond amount, depending on your credit, experience, and the type of bond required.
Simple bonds can be issued within a day or two, while more complex bonds requiring underwriting review may take longer.
The surety investigates the claim and may pay it on your behalf, but you're ultimately responsible for reimbursing the surety for any valid claim paid out.
