Surety Bonds

Surety Bonds & Starting a Business

04.11.2019

So you wake up with a great idea, create a business plan, get backers, and are about to finally start your own business. There’s one thing you may need that you probably don’t know about: a surety bond.

Surety bonds are required by an industry’s government agency to make sure that you and your business comply with applicable government rules. For example, state government agency mortgage broker bond requirements are detailed on the Nationwide Mortgage Licensing System (NMLS) website.

The industry your potential business is a part of plays an important role in determining what type of surety bond you need. For example, motor vehicle dealers need a new or new and used vehicle dealer surety bond to legally conduct business. Mortgage brokers need a mortgage broker surety bond to gain licensure. Gaining a contractor license requires a contractor license surety bond.

Notaries, travel agencies, and collection agencies need surety bonds to legally start their businesses as well. The bonds provide a protection for the government agency issuing a license that your business will act in accordance with all applicable rules and regulations.

So where can you instantly purchase a surety bond?

Colonial offers the direct and digital way to obtain a surety bond for your license and permit. We are the insurance company — which means no agent, no broker, and no middleman. The steps are easy — get a quote online, fill out your information, and enter your payment method. Your bond will be ready for print instantly. It’s that simple!