If you are going to
start your own business you should make sure that you have any and all license & permit bonds that
you would require. This is required by certain entities of the government and
it would allow you to do a specific work and it ensures that you are willing to
comply with all of the regulations and rules of the area. The obligor is the
person who is seeking the coverage while the governmental entity that requires
it is called the obligee. Here is everything else that you need to know about
this type of coverage.
What is It
The first thing that
you need to know is exactly what are the license
& permit bonds since they are
different and you might not need both of them. Here is what you need to know
about them, such as the license option is close to the same thing, but it has
some limitations in what is needed. The permit is coverage that would provide
all of the required protection for a business with a permit. This is often used
for commercial projects and it provides the business with protection for other
types of permission like a building permit. Each type has a few different
sub-types like:
- Administrator
- Athletic agents
- Freight broker
- Cemetery licensee
- Collection agency
- Cigarette tax
- City Ordinance compliance
- Concessionaire
- Contractor
- Detective or private eye
- Defective title
- Employment agency
- FHA or federal housing authority
- Fidelity
- Fiduciary relationship
- Fuel tax
- Fitness/health club
- Home improvement companies
- Insurance broker
- Motor vehicle dealer
- Payday lending
- Plumbing
- Hunting and fishing license
- Roofers
- Small business loan
- Warranty
- Wholesale business
These are only a few of the main
types that come under the larger flag of license & permit bonds and you would need to know if you would
require these. The coverage that you get when you purchase this is going to
help to protect your company as well as your customers, so make sure that you
have the right coverage for your needs. If you aren’t sure if you need one,
then you should make sure to ask the officials for the state that you are
living in and they would be able to let you know if you do and the coverage
level as well.
It is important that you know what
you would need when it comes to getting the right coverage and what type of
business requires these. If you are going to be doing any type of construction
or other work that needs permission from the government, then you more than
likely will need one. Go ahead and ask the state or other government officials
if you require one of these and if so, then how much coverage. This is a simple
process, so make sure that you have the right amount of coverage for your
business and your clients.
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