BUSINESS

Five Facts about License and Permit Bonds

Nielson Bonds legally licensed to issue license and permit surety bonds in all almost every states. License and permit bonds a type of type of commercial surety bonds needed for many business industries. Federal, state and local government agencies postulate business owners in their respective industries to purchase License bonds Company South Florida before they can issued a license or a permit for certain types of work. The terms “license bonds” and “permit bonds” often used in reciprocation to refer to this broad type of surety bond.

License and Permit Bonds do not cover for you

Unlike insurance that shields the insured, License and Permit Bonds do not protect the ventures. If business organizations want to protect themselves, they would require to get a Fidelity Bond. A License and Permit Bond covers other individuals. Think of a License bonds Company South Florida as insurance for others, compensated by you.

  • If you fulfill your duties and abide by the law, not a single thing will happen with your bond.
  • you don’t succeed to fulfill your duties or break the law, someone can file a claim against your bond.
  • If the surety bond company has to pay out on a claim, you are accountable for repaying every penny of that claim.

License and Permit Bonds do not cost a fortune:

License and Permit Bonds usually set a specific bond amount. You do not require to pay the full bond amount to get bonded. Consider an instance, if your profession requires you to get a $25,000 bond, you will not be asked to pay $25,000. You can acquire most bonds for as low as 1% of the total bond amount. A $25,000 bond perhaps only cost you $250. The rate you pay for License bonds Company South Florida, is based on your personal credit record.

License and Permit Bond is not a insurance

When any of the businesses say they “Licensed, Bonded, and Insured” this implies they have all three.

  • License: Followed all state and local requirements and was issued a license.
  • Bonded: Assessed by a surety company and issued a surety bond based on their credit history and past work record.
  • Insured: Evaluated by an insurance company and sanctioned for an insurance policy.

There may be penalties if you operate a business without a bond

Here’s news articles of people who practiced without a License bonds Company South Florida:

  • Man Arrested For Not possessing Contractor’s License
  • Fake Architect Faces Jail Time After Practicing Without a permit
  • Spa Fined heftily For Practicing Without a License

Depending on the state, you may not needed to have a license, but if you fail to adhere to state and federal regulations you could be facing fines of $15,000 and higher, as well as jail time of up to six months or more. You also open yourself up to legal recourse from customers if anything goes incorrect and you were operational without proper licensing and bonding.

You don’t need good credit to get a License and Permit Bond

Just because you have had financial issues in the past or currently hold a relatively low credit score, doesn’t mean you won’t be able to get a License Bond for your venture. A stellar credit score going to make the process simpler, but other factors reckoned during the application period such as:

  • Pending or former lawsuits
  • Bankruptcy statements
  • Your past work record
  • Status of previous bonds you have issued

Conclusion

While a surety bond is not required by law, the failure to post one can result in serious consequences for your business. If you have a small business that needs a License and Permit Bond, or if you’re an individual looking for one, getting one from us is simple. We work with clients of all credit levels!

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