Surety Bond - Definition

A Surety Bond is a legal document issued by an authorized insurance or bonding company, which ensures contract completion in the event of contractor default. A Surety Bond is required when applying for such categories of the Basic Business License as Consumer Goods (Auto Repair), Home Improvement Contractor, Pawnbroker, Solicitor and many others.The Surety Bond must be valid for the duration of the two-year license. The bond may be issued by an authorized insurance or bonding company, or a cash bond may be posted with the Department of Consumer and Regulatory Affairs.

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