Licence and miscellaneous surety bonds
Government regulatory authorities and some businesses require that a bond be posted before granting permission, usually in the form of a licence, to engage in the activities they regulate. The intent is that the applicant will honour their commitments rather than risk personal monetary loss by forfeiting the money represented by the bond.
Service bonds cover situations where a business owner (principal) is required to provide a bond to a 3rd party (obligee) guaranteeing performance of services without loss to that 3rd party through dishonest or criminal acts committed by the principal or its employees.
Administration or fiduciary bonds
Administration or fiduciary bonds are required when the court appoints someone to administer the estate when an individual dies without leaving a will. A bond is also required when the court appoints an individual to administer the trust of an infant, and when the court appoints someone to administer the affairs of a mentally incompetent dependant adult.
Lost-securities bonds enable you to secure duplicates of valuable documents that have been mislaid, stolen, or destroyed by such causes as fire, by presenting the bond to the life insurance company, bank or financial institution who originally issued the lost document.